As soon as China decided to implement a nationwide cryptocurrency exodus under their jurisdiction, a need for a new space emerged. The Chinese miners in exile started to look for potential new host countries for continuing their operations. On the other hand, many countries decided to cash in on the crypto industry. Singapore is one of the prime locations for cryptocurrency-based businesses in South East Asia.
The country has been planning to reinvent its economy by focusing on the development and growth of its fintech sector. Some crypto-based businesses and enterprises have decided to open branch offices or transfer their businesses to Singapore permanently. The crypto exchanges from China, such as Huobi, BitMart, and BiKi, have stopped creating new accounts and will seize their operations completely before the end of the current year.
Major Crypto-related Businesses have Halted their Operations in China
Sites like CoinMarketCap and CoinGecko that deal with crypto-related analysis and statistics have stopped their operations in China. Furthermore, the social media platforms like Weibo have decided to move their crypto community to other applications like Telegram, Twitter, and Discord. Under these conditions, the crypto industry that generates a revenue stream valued in billions is up for grabs.
PeckShield is a blockchain and cyber security enterprise. A recent survey published by this enterprise reveals that since the crypto exodus in China, the international market has witnessed a 62% increase in capital outflows from the region. The largest contributions of these outflows are made from the sources like Huobi and Binance.
The fastest-growing crypto industry of Singapore is not a mere coincidence. The Monetary Authority of Singapore (MAS) has introduced a new regulatory charter focused on crypto enterprises under the Payment Services Act. This new regulatory framework has made it mandatory for the crypto exchanges and other digital market institutions to apply for state-approved practice licenses. Lily Z King is the chief operating officer at a crypto asset management company in Singapore. She recently told the media that the regulatory insight of MAS has allowed the government to keep tabs on the matters like money laundering and other financial crimes related to cryptocurrencies. Chia Hock Lai is the co-chairperson of the Blockchain Association in Singapore. He claims that Singapore offers a viable environment for crypto researchers, startups, and derivatives institutions. The MAS has also issued a digital trading license to companies like DBS Bank and crypto exchange of Australia, and several independent reserves.