Slowing Down in Cryptocurrency Investment in Singapore and Globally

02/16/2023 11:31 • Blockchain Briefs • 78 views

It is reported that according to KPMG’s Financial Technology Pulse Report in the second half of 2022, although cryptocurrency or blockchain is the primary area of Singapore’s financial technology investment in 2022, this area is slowing down globally. In Singapore, the funds related to cryptocurrencies decreased by 21% from US $1.5 billion in 2021 to US $1.2 billion in 2022. Globally, investment in this field has dropped from US $30 billion in 2021 to US $23.1 billion in 2022. KPMG predicts that by 2023, the investment in companies focusing on cryptocurrency may remain very slow, and the investment may shift to jurisdictions with a stronger regulatory framework for cryptocurrency activities.

KPMG: Despite the global economic slowdown, cryptocurrency is still the primary area of financial technology investment in Singapore in 2022

Analysis based on this information:

The latest Financial Technology Pulse Report by KPMG states that cryptocurrency or blockchain is the primary area of investment in the financial technology sector in Singapore, but this investment is slowing down globally. The report reveals that in Singapore, funds related to cryptocurrencies decreased by 21% from US $1.5 billion in 2021 to US $1.2 billion in the first half of 2022. This downturn is not only observed in Singapore, but globally, where investment in this field has dropped from US $30 billion in 2021 to US $23.1 billion in 2022.

Although Singapore is expected to remain a leading financial technology hub in the Asia Pacific region, the KPMG report suggests that by 2023, investment in companies focusing on cryptocurrency is likely to remain very slow. There is a high probability that the investment may relocate to jurisdictions with stronger regulatory frameworks for cryptocurrency activities.

The recent slump in cryptocurrency and blockchain investment is due to several reasons. One of the significant factors is the uncertain regulatory framework surrounding cryptocurrency and blockchain technology. The lack of clear government regulations and policies has created uncertainty among investors, leading to a decrease in investment in the sector. The KPMG report suggests that jurisdictions with a robust and unambiguous regulatory framework are likely to attract more cryptocurrency investments in the coming years.

In conclusion, the KPMG report highlights that the investment trend in cryptocurrency and blockchain technology is stalling both in Singapore and globally. The report recommends that governments must create a clear regulatory framework around cryptocurrency and blockchain technology to attract more investment. The world’s leading economies are already looking to create specific legislation around cryptocurrency, and governments need to follow. Therefore, swift action is necessary to create an enabling environment for investment in this critical sector.

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