Singapore’s Position in the Global Crypto Landscape
Singapore has established itself as a leader in thoughtful crypto regulation and sophisticated experimentation around digital assets. The city-state now faces a crucial decision: whether to maintain its cautious approach to crypto or fully embrace its role as a leading financial center.
Singapore’s Crypto Adoption and Regulatory Framework
As of 2023, 57% of financially forward Singapore residents own cryptocurrencies, with approximately 40% of Gen Z and millennials holding crypto. The Monetary Authority of Singapore (MAS) has been a global leader in framing regulation and facilitating innovative test-and-learn projects. Singapore has created a credible licensing regime for digital assets and stablecoins, launched cutting-edge pilots like Project Guardian and Project Orchid, and attracted global founders through initiatives like the EDB’s Global Founders Program.
Global Competition and Singapore’s Response
However, other jurisdictions are rapidly adapting and moving forward with their own crypto regulations. Hong Kong has introduced the ASPIRe Framework to attract global digital asset platforms, while the UAE is cultivating a multi-regulator framework. The UK has committed to becoming a global hub for digital assets, laying out a comprehensive legal and regulatory roadmap.
To sustain its leadership, Singapore must view digital assets not only as a risk to contain but also as a technology to harness. This involves recognizing the importance of blockchain infrastructure and the assets that power permissionless innovation, welcoming full lifecycle engagement from global platforms, and incentivizing commercial-scale use of blockchain in FX, asset management, and payment infrastructure.
Recommendations for Singapore’s Future
- Launch a National Digital Asset Strategy: Develop a coordinated effort across regulators, agencies, and industry to articulate a long-term vision for digital assets as a pillar of Singapore’s economic and innovation agenda.
- Establish a Digital Asset Working Group: Convene a cross-ministerial working group with private sector participation to execute the National Digital Asset Strategy.
- Sovereign Funds Consider Strategic Bitcoin Positions: Explore the strategic utility of bitcoin as a digital store of value, potentially placing Singapore at the forefront of this movement.
- Ease Guardrails for Onshore Retail Participation: Implement a more nuanced regime that enables responsible access and robust disclosures for retail investors, allowing them to benefit from innovation safely.
- Double Down on R&D and Upskilling: Collaborate between public and private sectors to lead in areas like onchain FX settlement, tokenized fund distribution, and stablecoin-based trade finance, while expanding SkillsFuture pathways to include crypto and digital assets roles.
- Establish a RegLab for Tokenization: Create a low-risk regulatory environment with a clear path to commercialization for DPT licensed operators to accelerate the creation of innovative financial products.
By implementing these measures, Singapore can build on its strong foundations, unlock new capital, attract top-tier talent, and reinforce its leadership in financial innovation. The city-state has the opportunity to chart a bold course forward and ensure that the next decade of finance is built in Singapore.
