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Cryptocurrency Investment Slows Down Globally While Singapore Shifts Focus

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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…

Cryptocurrency Investment Slows Down Globally While Singapore Shifts Focus

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

Interpretation of the news:


According to the Financial Technology Pulse Report released by KPMG, the global investment in cryptocurrencies or blockchain has witnessed a decline in the second half of 2022. Although Singapore was investing heavily in this area in 2022, it has also experienced a decline with funds decreasing from US $1.5 billion to US $1.2 billion. Even globally, the investment has decreased from US $30 billion in 2021 to US $23.1 billion in 2022.

Several factors led to this decline, including regulatory scrutiny, market volatility, and environmental concerns. Businesses operating in this field are struggling to comply with regulatory demands since they are uncertain about the future of cryptocurrency regulation. The lack of transparency and security in the system has contributed to the growing skepticism about investing in cryptocurrencies. Additionally, the prominent environmental concern raised by the massive energy consumption led to the decision of many investors to disengage.

Singapore’s cryptocurrency sector is on the decline due to the same factors mentioned above. The government has been working to establish a regulatory framework for digital assets to ensure they are monitored and secure. However, the fluctuating markets have caused businesses to retract their investment, which has negatively impacted the economy.

KPMG’s prediction that by 2023, investments in cryptocurrency could remain slow is a call for jurisdictions with a stronger regulatory framework. Countries like Japan, Switzerland, and Dubai have already begun establishing legal frameworks for cryptocurrencies, providing businesses with a sense of security and assurance.

In Conclusion, while cryptocurrency and blockchain were once the primary focus of Singapore’s financial technology investment, the decline in global investment has led the country to shift its focus. Regulatory uncertainty, market volatility, and environmental concerns are the primary factors contributing to the decline in global investment. The message highlights the need for stronger regulatory frameworks worldwide to enable more secure and transparent operations, thus allowing investors to engage confidently.

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