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- Coinbase warns Singapore’s cautious crypto stance may hinder its global competitiveness.
- A National Digital Asset Strategy and relaxed retail crypto restrictions are essential for Singapore’s growth.
- Research, development, and sandbox environments are crucial for Singapore’s crypto future, says Coinbase.
Coinbase has claimed that Singapore’s approach to cryptocurrency can pose a problem for the country’s future competitiveness. The US-based cryptocurrency exchange pointed out that the city-state requires a progressive approach towards cryptocurrencies. If Singapore continues to operate under this kind of measured approach. The nation might soon lose ground to its counterparts that are rapidly charging up the crypto world.
Specifically, in a recent blog post, Hassan Ahmed, Coinbase’s country director in Singapore, noted that the city-state could cede its pole position in the cryptocurrency market. He also mentioned that the country has favorable starting conditions for digital finance.
Nonetheless, for Singapore to remain relevant in the global economy. It is high time that the country shifts from a cautious attitude towards crypto. Currently, there are 58.5% of Singapore residents invest in cryptocurrencies, signifying that Singapore has a vibrant crypto community.
Strategic Crypto Measures
According to Coinbase, there are several measures that should be instituted in order for Singapore to sustain its favorable position. The exchange proposed the adoption of a National Digital Asset Strategy and the evaluation of the acquisition of strategic Bitcoin investments. It also called for an opening up of restrictions regarding the use of crypto for retail purposes.
As Ahmed pointed out, the current law that does not allow licensed actors to advertise their services is not well-defined. This easily creates a gray line between the regulated and the unregulated platforms. This makes it harder for consumers to differentiate between legal and licensed platforms and potentially unsafe, unregulated ones, especially in the increasing cases of scams and cyber frauds.
Moreover, Coinbase pointed to initiatives aimed at strengthening research and development and enhancing the skills of the local workforce as crucial measures. The change also proposed that Singapore put in place a concept of sandboxes whereby new concepts can be experimented on to encourage innovations. Such measures would help ensure that Singapore is ready to take on the future of the crypto industry.
Coinbase on Singapore’s Progress
This comes as other jurisdictions across the world are taking enhanced measures to shape up their crypto regulations. For instance, Hong Kong has the ASPIRe Framework formulated, and the UAE is already working on a multi-regulator approach to cryptocurrency. The United Kingdom is also following the trend of an increasingly significant position in the sphere of cryptocurrencies.
Nonetheless, Singapore has been keen and has issued 13 new crypto licenses in the just-ended year, which was double the number of licenses granted in 2023. Nevertheless, according to Coinbase, additional measures are required to establish Singapore as a preeminent digital assets hub.
