Singapore has always been considered as a haven for the ultra rich as it is well known worldwide for its strict regulations. Recently it has also been known as Crypto havens alongside Switzerland, Estonia and El Salvador recently due to their openness with Cryptocurrency. But can we see Singapore adopting the same move as El Salvador? And what are the benefits of maintaining an open relationship with cryptocurrency.
Singapore remains open to Cryptocurrency. What is the benefit for the country?
Singapore has always taken a balanced approach for Cryptocurrency with the regulations governing to trade, mine and own Cryptocurrency are firmly embedded into its legislation. It is definitely legal to own and trade Cryptocurrency in Singapore as Singapore itself was one of the first countries to adopt blockchain and distributed ledger technology.
Singapore and blockchain have been on top of the crypto timeline as Singaporean-based investor Vignesh Sundaresan purchased the highest-selling NFT at $69M. Singapore is also home to several crypto businesses and currencies, including the Litecoin Foundation, Zilliqa, HODLnaut and Three Arrows Capital.
Singapore is one country that heavily depends on foreign investments coming inflow to the country. With the Net foreign inflow coming to the country counting to 28.35% of its Nominal GDP in 2019. Maintaining an open stature towards Cryptocurrency and providing a 0% Capital Gains tax could help direct more inflow of investments into the country.
Should Singapore follow El Salvador’s move to adopt Bitcoin as legal tender?
A lot of buzzes were created when El Salvador announced a week ago which prompted that Singapore should also consider the move. The move would be a smart idea considering that the price during the announcement on June 10th opened at $37,577 and recently it’s at $39,055 and although it is currently on the dip. But there’s also some substantive opinion behind the idea of an associate professor of humanities, Andrew Bailey at Yale-NUS, who’s watching the situation very closely as well.
“Singapore has a long history of exploiting disruptive innovation to get an edge over regional rivals. Now, we’re already regional leaders in fintech and Bitcoin, to my mind, falls within all those categories. It’s disruptive, it’s innovative, and it’s fintech. And this is important. Bitcoin has for over a decade rewarded early adopters.”
Raul Paul, CEO of Real Vision, has reportedly said that Singapore’s sovereign wealth fund, Temasek, has been acquiring Bitcoin for three years already. And for many residents, using e-wallets like GrabPay and transferring funds with PayNow are incredibly popular. Some say that is a logical step considering that Singapore’s Population is lesser than El Salvador, and the adoption should be easier than bigger countries like USA or China.
Bailey says the next hurdle is likely a political one if Singapore’s leaders can even be comfortable with technology that they can’t unilaterally control. Well all these depend on whether the move made by El Salvador is a good one but Singapore is well known for its strict regulations and legalities and if Singapore made the move then it is a good sign for the mass adoption of Cryptocurrency in the future.
We in Nagaya Technologies being a company registered in Singapore are well aware of the legalities and regulations formed by the Singaporean government. We are honoured to be a part of the Singapore Fintech Association and the Association of Cryptocurrency and Blockchain Enterprises and Startups Singapore and we continue to strive with our vision which is to provide value and integrity through Legality and Transparency. We created a Hybrid Cryptocurrency that is backed by pure LBMA grade gold and running subsidiary projects that we surely believe will benefit our global coin holders.
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