Singaporeโs current tone of caution on crypto could limit its future competitiveness, Coinbase warned, urging a more ambitious national strategy.
U.S.-based crypto exchange Coinbase has urged Singapore to take a bolder approach to digital assets, warning that the country could fall behind if it continues to view crypto mainly as a risk.
In a recent blog post, Coinbaseโs country director for Singapore Hassan Ahmed warned that Singapore risks losing its lead if it continues to take a cautious approach to crypto. Ahmed noted though that the country already has a strong foundation in digital finance, adding that as of 2023, โ57% of finance forward Singapore residents own cryptocurrencies.โ
Coinbase is urging Singapore to take several steps, including launching a National Digital Asset Strategy, considering the establishment of strategic Bitcoin (BTC) positions, and easing guardrails on retail crypto access.
โRestricting licensed actors from marketing blurs the line between regulated and unlicensed players โ making it harder for consumers to distinguish safe platforms from risky or offshore alternatives. This is especially material in a world where digital scams and fraud are growing more prevalent.โ
Hassan Ahmed
Ahmed also added that Singapore should double down on research and development as well as upskilling, and create a regulatory sandbox environment.
Ahmed warned that other jurisdictions are now moving faster, noting that Hong Kong has responded to market feedback with the ASPIRe Framework, the UAE is building a multi-regulator framework, and the United Kingdom has also committed to becoming a global hub for crypto.
As crypto.news reported earlier, Singapore is signaling progress in becoming a global hub for the crypto business as the city-state granted 13 new crypto licenses last year, doubling the number issued in 2023.
