Experts: Singapore supports institutional crypto investors more willingly than private ones

Amid political uncertainty, Asian experts in cryptocurrencies note the benevolence of the Singapore authorities towards large companies.

Associate Professor at Yale-NUS College (YNC) in Singapore and fellow at the Bitcoin Policy Institute (BPI) Andrew M. Bailey noted the change in Singapore’s policy towards cryptocurrencies.

“Regulators are increasingly making a distinction between retail and institutional, and they are much friendlier to the latter than to the former,” Bailey said.

Associate Professor YNC opined that one of the reasons for the differentiation could be uncertainty about the identity of Singapore’s future prime minister.

“Until this political issue is resolved by Parliament, the path taken by the regulators is cautious and conservative, pending further guidance,” Bailey said.

Local crypto products are more accessible to organizations than to retailers, the expert says. For example, crypto-related banks in Singapore make products available primarily to accredited investors and institutions.

Asian Market Sense founder Andrew Sullivan believes that Singapore has become an attractive destination for cryptocurrency investors.

“Singapore has become a hub for them amid China’s ban on cryptocurrencies. Singapore’s willingness to set public rules makes it attractive to private individuals,” Sullivan said.

Despite the desire of the crypto business to locate head offices in Singapore, local authorities are tightening their policy towards cryptocurrencies. Treasury Secretary Lawrence Wong said the state’s current income tax rules will apply to income generated from NFT transactions. In February, the Monetary Authority of Singapore announced that it would not develop regulatory rules for non-fungible tokens for the time being, as this is an emerging market. Singapore’s largest financial holding DBS is completing the development of a platform that will allow clients to trade cryptocurrencies.