Global crypto groups are expanding their presence in Singapore as other markets crack down on the industry, attracted by the friendly regulatory environment of city-states.
Among the executives moving to Asian financial hubs is Changpeng Zhao, the founder of. BinanceA crypto exchange that handles trillions of dollars in transactions annually. Gemini, a US exchange founded by Winklebos twins, is also increasing its workforce in Singapore.
The city has not yet issued a license to a cryptocurrency company, but has granted some of the industry’s largest players an exemption, allowing it to serve local retail and institutional investors.
The growth of the crypto industry has been supercharged this year, America, England,and China I’m holding down the sector. Hong Kong, a rival Asian financial center, is set to limit crypto trading to accredited or institutional investors under new legislation.
Singapore is much more welcome. Sovereign wealth funds GIC and state-owned investment firm Temasek have invested hundreds of millions of dollars in this sector. The Monetary Authority of Singapore has made it easier for foreign cryptocurrency groups to establish residents and provide services, albeit with restrictions such as trading restrictions. The Stock Exchange of Singapore has introduced two cryptocurrency indexes.
“Crypto Brothers around the world read the text on the wall and realized that Singapore is accepting asset classes,” said the founder of a city-based crypto startup.
Binance is tax-free in Singapore and last month advertised more than 200 jobs in the city on LinkedIn. Vitalik ButerinThe founder of the cryptocurrency Ether, is also based there.
OSL, a Hong Kong-based exchange, is also tax exempt and plans to double its workforce by the end of the year.
“Regulations are the number one deciding factor when it comes to where to put our business. Singapore is clear and accurate about how it interacts with the crypto and digital asset markets,” said Canny Lee, head of OSL’s Singapore office. Says.
Founded by Cameron and Tyler Winklevoss, Gemini has chosen Singapore as its headquarters in Asia and is expected to have approximately 50 employees by the end of 2021. When we opened our office last June, we had only one employee.
“Singapore is Asia’s leading financial hub and has many clients, especially in the area of personal wealth. We talked with wealth management companies as many wealth management companies need encryption solutions. “Jeremy Ng, Managing Director of Gemini Asia, said.
Jihan Wu, co-founder of billionaires in Chinese cryptocurrency mining Technology Group Bitmain, Cryptocurrency startup started in the city.
According to MAS, about 40% of applicants under Singapore’s Payment Services Act wanted to offer digital payment token services, but there is no “significant pickup” for applications that are “directly due to the actions of other countries.” was.
Chia Hock Lai, chairman of the Singapore Blockchain Association, said many Hong Kong-based players have offices in the city. Hong Kong’s law, which restricts transactions to accredited investors, “talks” about its attitude towards digital currencies, he said.
Singapore’s economy, on the other hand, relies heavily on services such as: Commodity trading And financial transactions.
Daniel Burke, Managing Director of BitGo, a Singapore-based US cryptocurrency administrator, said: Singapore could run out of the future business it needed because it couldn’t get the framework right.
However, some industry insiders say the problem is that it is not clear when MAS will approve the license. “There are some potential clients who say they won’t do business with us until they get the right license,” said one applicant. “Unfortunately, we still don’t know when that will happen.”
Additional Report by…