Since the 1980s, Singapore has become the main economic hub of the Southeast Asian region. With one of the highest GDP per capita in the world, the state does not intend to stop there. Today, hundreds of requests for authorization to carry out activities related to cryptocurrencies are being sent to it.
Singapore: the new crypto Eldorado?
In 2019, Singapore had unveiled a bill to create a license for payment and cryptocurrency applications.
Coming into effect in January 2020, more and more companies are now looking to obtain the said license to operate on Singaporean soil. Thus, according to information relayed by Bloomberg, the Monetary Authority of Singapore (AMS) would have received more than 300 license applications.
Among the applicant companies, we find the parent company of the giant Google, Alphabet, the Alibaba Group as well as companies recognized in the crypto ecosystem, such as Binance or the Ant Group.
With the influx of applications, the AMS is currently working on a way to process them faster, without being negligent.
“Licensing is a reward. It’s not something to be taken lightly. “
Sopnendu Mohanty, CFO of AMS
Despite the implementation of this license, Singapore is allowing crypto service providers to continue their operations in its territory until the license is officially obtained.
Developing a new Silicon Valley in Asia
It’s no longer a given that Singapore is overly ambitious. In his interview with Bloomberg, Sopnendu Mohanty effectively said he wants to turn his country into a new Silicon Valley.
Truth be told, between 2014 and 2020, Singapore has seen its investments and fundraising grow from $20 million to over $1.1 billion. Given its growth, the country is therefore keen to consolidate its position as a globalized financial center, while ensuring that its various activities are well regulated.
While China might (still) ban cryptocurrencies and their mining, Singapore might well become a major crypto hub for the entire Asian continent. In any case, it is doing what is necessary to adapt to current financial innovations.
