Being a crypto-friendly country has paid off in terms of adoption, a new study on Singapore shows.
The crypto exchange Gemini carried out a study in collaboration with CoinMarketCap and Seedly and recorded the results of this in a report entitled “The State of Crypto in Singapore Report 2021”. This shows that more than two-thirds of Singaporeans who have made financial investments currently hold crypto.
The study interviewed 4,348 Singapore-based adults who said they had private financial and investment products or were interested in them. 67 percent of those surveyed stated that they currently own crypto assets.
Every fifth crypto owner is a woman. The average crypto holder in Singapore is a “29-year-old man with an average annual household income of about 51,968 Singapore dollars ($ 38,456) a year”.
When asked which crypto assets Singapore investors hold, Ether (ETH), the cryptocurrency of the Ethereum blockchain, is clearly at the top of the most popular cryptocurrencies with 78 percent. 69 percent of crypto owners said they want Bitcoin (BTC). Cardano (ADA) and Binance Coin (BNB) are the most popular after the two with 40 percent and 31 percent respectively. According to the survey, one in four investors holds XRP and Tether (USDT).
The report found that interest in a cryptocurrency rose in part due to the COVID-19 pandemic, as 67 percent of crypto owners invested more to hedge against inflation during the pandemic. Or they have invested the income that they had more to dispose of because of the lockdowns.
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Lack of knowledge and understanding is the single biggest factor preventing non-crypto owners from investing in this asset class. The volatility of the crypto markets, the risky nature of crypto investments and the lack of regulatory oversight were also cited as reasons why they do not invest.
Another study that interviewed fewer people found that 46 percent of Singaporeans will want to buy digital assets in the next 12 months. With no capital gains tax levied on income from cryptocurrencies, Singapore has established itself as the center for crypto and blockchain in the Asia-Pacific region.