Singapore’s retail cryptocurrency market is entering a modern phase of maturity as investors increasingly choose trustworthy platforms over those with lower fees, according to a modern study.
On Thursday, a joint study was conducted by the MoneyHero financial platform and the Coinbase cryptocurrency exchange revealed that 61% of “financially savvy” investors in Singapore now own cryptocurrencies, with trust becoming their main factor in choosing exchanges and beating fees.
The data suggests that the city-state’s crypto ecosystem is evolving beyond chasing the cheapest exchange and focusing on placing value on a regulated framework, security and long-term conviction.
The survey, which surveyed 3,513 retail investors and cryptocurrency-interested Singaporeans, also found that 58% identify as long-term holders, with 42% having been investing for more than two years.
Additionally, the data showed that respondents kept their cryptocurrencies below 10% of their overall portfolios, with an average of three tokens per holder, suggesting that investors balance discipline with diversification.
Individual investors plan long-term investments
The survey results indicate deeper adoption in the region. An ownership rate of 61% among financially savvy Singaporeans indicates that cryptocurrency is no longer a niche market.
The survey found that 27% of have-nots expressed interest in investing in the next 12 months. This shows that there is also room for development in the region.
When it comes to how investors view cryptocurrencies, the survey results showed a divide. Forty-four% of respondents said they viewed cryptocurrency as an asset, while 29% said they viewed it as a tool for speculation.
When it comes to education, social media was touted as one of the main sources of information for respondents.
The results showed that 62% of respondents mentioned social media as their main source of knowledge about cryptocurrencies. Scientists have noted that this creates both opportunities and risks for disinformation.
After social media, 55% mentioned friends and family and 43% mentioned news and media. Stock exchange blogs were followed by 27% of respondents, indicating them as the main sources of knowledge.
When it came to confidence in understanding cryptocurrencies, the results were mixed: 48% said they were confident in their knowledge of cryptocurrencies, and 52% said they were unsure.
Related: Singapore-based SGX will launch Bitcoin and Ether platforms as institutional demand grows
A progressive but stringent regulatory approach
Singapore has long stood out as a financial center with low corporate taxes, pro-business regulations and AAA Rated from the international rating agency Fitch.
This island city-state was also one of the first creators of cryptocurrency regulations. In 2020 it is passed Payment Services Act (PSA) 2019, one of the first comprehensive legal frameworks covering cryptocurrencies in Asia. The law defined digital payment tokens (DPTs) as digital representations of value that are stored or traded electronically.
While Singapore is considered a progressive cryptocurrency hub, it is also a highly regulated jurisdiction.
In June, the country ordered local crypto companies to cease foreign operations targeting foreign markets, halting their operations or threatening them with stiff penalties, including a $200,000 fine or up to three years in prison.
Singapore’s financial regulator, the Monetary Authority of Singapore, has said there will be no grace period, no transitional arrangements or extensions.
Recently, Singapore signaled a coming shakeout in the unregulated stablecoin market. On November 13, MAS managing director Chia Der Jiun stated that stability needs to be strengthened and that unregulated tokens have a mixed record in maintaining their position.
He added that regulations will need to be tightened over time as stablecoins become more systemic.
Warehouse: Taiwan Considers Bitcoin Reserve, Sony Ethereum L2 Super App: Asia Express
