Major digital asset exchange Coinbase suggests Singapore’s current cautious approach to crypto could hinder its standing as a leading financial hub. The firm advocates for a more forward-thinking national plan, warning that viewing the sector primarily through a lens of risk may limit future economic opportunities.
Hassan Ahmed, leading Coinbase’s Singapore operations, articulated that the nation risks its competitive edge despite a strong existing foundation in digital finance. He pointed to significant local engagement, noting that as of 2023, 57% of tech-savvy Singapore residents already held digital assets. A proactive strategy is needed to maintain leadership.
To foster growth, Coinbase proposes several key actions. These include developing a dedicated National Digital Asset Strategy, exploring the possibility of holding strategic Bitcoin reserves, and reassessing strict guardrails that currently limit retail access to regulated crypto platforms.
Ahmed highlighted a potential unintended consequence of restricting marketing by licensed firms. He argued it could blur the lines for consumers, making it harder to differentiate between safe, regulated operators and riskier, unregulated or offshore alternatives, a significant concern as digital scams proliferate.
Further recommendations include boosting investment in research, development, and digital skills training, alongside establishing a supportive regulatory sandbox environment. This advice comes as other global financial centers, including Hong Kong, the UAE, and the United Kingdom, actively develop comprehensive crypto frameworks, signaling a competitive international landscape.
Although Singapore has demonstrated progress by doubling its approved crypto licenses to 13 last year, the exchange’s commentary underscores the call for a bolder, more holistic vision. Such a strategy would aim to fully leverage the potential of blockchain technology and the broader digital asset ecosystem.