This article comes from, original author: Mercedes Ruehl, original author: Mercedes Ruehl
Odaily Translator | Nian Yin Si Tang
Odaily Translator | Nian Yin Si Tang
As other countries or regions around the world continue to send regulatory signals to the cryptocurrency industry, Singapore's friendly regulatory environment has successfully attracted cryptocurrency companies from around the world, and these companies are expanding their operations in Singapore.
Executives relocating to the Asian financial hub include Changpeng Zhao, the founder of Binance, which handles trillions of dollars in crypto transactions each year, and Gemini, the U.S. exchange founded by the Winklevoss twins, is also increasing its headcount in Singapore.
Singapore has yet to issue licenses to cryptocurrency firms, but has temporarily granted exemptions to some leading crypto firms, allowing them to serve local retail and institutional investors.
Market regulators including the U.S., U.K., and China have cracked down on the crypto industry despite its strong growth this year. Hong Kong, China, also the financial center of Asia, will also restrict crypto trading to accredited or institutional investors under the new law.
The crypto industry is clearly more popular in Singapore. The country's sovereign wealth fund GIC and state investment firm Temasek have poured hundreds of millions of dollars into the industry. The Monetary Authority of Singapore, or MAS, has made it easier for foreign crypto firms to locate and provide services, despite rules that include trading restrictions. The Singapore Exchange has also launched two cryptocurrency indices.
“There is a sense among crypto peers around the world that companies in Singapore are embracing this asset class,” said the founder of a Singapore-based crypto startup.
Binance has received a license waiver in Singapore and has posted more than 200 Singapore job openings on LinkedIn in the past month. Ethereum co-founder Vitalik Buterin has also been based in Singapore.
Hong Kong-based OSL Exchange was also granted a license exemption and plans to double its headcount by the end of the year.
"When you're thinking about where to do business, the number one deciding factor is regulation," said Kanny Lee, head of OSL's Singapore office. "Singapore is very clear and precise on how to deal with the cryptocurrency and digital asset markets."
Gemini, founded by Cameron and Tyler Winklevoss, has also chosen Singapore for its Asian headquarters and expects to have around 50 employees by the end of 2021, up from just one when the office was launched last June.
“Singapore is one of the major financial centers in Asia with a large number of clients, especially in the private wealth sector. We have had conversations with wealth management firms, many of which require crypto solutions,” said Jeremy Gemini, Managing Director Asia Ng said.
Billionaire Jihan Wu, one of the founders of Bitmain, also founded a crypto startup in Singapore.
About 40% of applicants under Singapore's Payment Services Act wanted to offer digital payment token services, but there were no applications "directly attributable to action by other countries," the Monetary Authority of Singapore said. significantly increased."
Chia Hock Lai, chairman of the Blockchain Association of Singapore, said that there are currently some Hong Kong companies setting up offices in Singapore. New legislation in Hong Kong, which will limit crypto trading to accredited investors, "illustrates" Hong Kong's stance on digital currencies, he said.
So why is Singapore tolerant of the encryption industry? One reason may be that Singapore's economy relies heavily on services such as commodity trading and financial transactions.
“Without a natural resources industry to fall back on, Singapore cannot risk being overly hostile to an industry that may have great potential in attracting talent and business,” said Daniel Burke, managing director of U.S. cryptocurrency custodian BitGo in Singapore. He also added that if Singapore failed to put in place the right framework, it could lose much-needed future business.
