Despite the rise of altcoins, BTC and ETH remain the two top popular tokens amongst Singaporean investors.
The latest study by cryptocurrency exchange Independent Reserves found that 40% of Singaporeans currently hold cryptocurrency tokens, with 76% of them holding two or more different tokens.
The independent Reserve Cryptocurrency Index (IRCI) Singapore surveyed 1,500 Singaporeans on their attitudes to cryptocurrency, and measured the results based on awareness, adoption, trust, and confidence of cryptocurrencies in the country.
Bitcoin and Ethereum are the most popular type of cryptocurrencies with 78% and 50% of those surveyed holding the tokens respectively. Despite the popularity of other canine-based meme tokens, Dogecoin came in third with 25% holding the token in their portfolio. Awareness of altcoins are also on the rise, with respondents being aware of tokens like Solana, Avalanche, Algorand, and Cardano.
Despite the ongoing volatility in the crypto market, the report shows that this has not deterred local investors from investing in digital assets. Over 47% of those surveyed are planning to buy cryptocurrencies in the next 12 months, and 31% of them are confident that Bitcoin will be worth $100k – $250k by 2030.
Word of mouth via family and friends are the most common way investors are introduced to digital assets, with 51% of respondents citing this reason for investing in cryptocurrencies. On the flip side, price volatility and a lack of understanding about cryptocurrency investing remains a barrier to its adoption as an asset. One major reason cited that could increase the trust in crypto would be greater clarity around government regulations as well.
When asked if increasing regulations would run the risk of turning Singaporean investors away from cryptocurrencies, Raks Sondhi, Singapore Managing Director of Independent Reserves, states that cryptocurrencies are a new investment asset, and the Monetary Authority of Singapore (MAS) are one of the first regulators to take the asset mainstream by defining laws and regulations around it while authorities in other countries have backtracked on their regulations.
“Singapore has one of the clearest and most detailed licensing requirements of any jurisdiction in Asia, and a well-regulated environment for trusted crypto players. This is absolutely critical for the nation’s bid to become a key crypto hub amidst growing acceptance and uptake of digital currencies.” said Raks Sondhi.
Earlier in January, the MAS released a guideline that disapproves of any marketing or advertising of digital payment token (DPT) services to retail investors. Since then, the state has adopted the Travel Rule, where users will be required to provide additional information for both outgoing and incoming digital token transfers.
In April, the approval of the Financial Services and Markets Bill extended Singapore’s cryptocurrency regulations to SG-based companies that provide DPT services outside of the city-state.
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