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Singapore Budget Impact on Crypto: Web3 Community Sees New Dominance in Asia

Last Updated February 14, 2024 10:57 AM
Shraddha Sharma
Last Updated February 14, 2024 10:57 AM

Key Takeaways

  • Singapore Budget 2024 will be unveiled on February 16.
  • Web3 community hopes to strengthen the talent pool and lower adoption barriers.
  • Can Singapore maintain its crypto hub status while competition from Asian countries emerges?

Web3 and digital asset firms are feeling optimistic that Singapore’s 2024 budget, which is set to be unveiled on February 16, could help propel crypto in the region. 

Economic commentators have noted that upskilling could be a major theme in this year’s budget as Web3 firms are seeking governmental support in three key areas: expanding the talent pool, reducing barriers to blockchain adoption, and shoring up the city-state’s defenses against cyber threats. 

Finance Minister Lawrence Wong is in focus as the sector is looking for targeted interventions to ensure Singapore’s dominance in Asia’s crypto market. Budget 2024 also comes before the general elections the following year. Therefore, Singapore’s crypto policy continuity remains vital for the web3 community.

Web3 Community Sees Urgency of Upskilling

Based on reports , Singaporean digital asset firms have made it clear: the lack of skilled professionals is a significant barrier to growth. If the upcoming budget addresses the gap by rolling out initiatives for upskilling the workforce, it could provide a boost for Singapore. Meanwhile, the government is said to be focusing on inflation, employment and job security issues. 

The integration of blockchain technology and artificial intelligence (AI) in the employment sector could become a key priority after community demand. 

Singapore’s Crypto Future in an Evolving Asia

The budget comes before a leadership change, with current Prime Minister Lee Hsien Loong preparing to pass the torch to Wong 

Despite the political shift due in 2025, the Monetary Authority of Singapore has been clear on the status of crypto and web3 adoption. In 2022, Project Guardian was launched to assess the feasibility of asset tokenization while sending a message: Singapore is serious about its web3 ambitions.

Notably, the Singaporean central bank and financial regulator granted Major Payments Institution (MPI) licenses to at least 18  crypto businesses and payment companies, including Ripple and Blockchain.com.

In October 2023, MAS partnered with Japan’s FSA, Switzerland’s FINMA, and the UK’s FCA to promote responsible innovation in digital assets across fixed income, foreign exchange, and asset management.

Crypto Dominance in Asia has to be Regulated

Singapore has continued to tighten its regulatory grip while handing out licenses to web3 firms,giving it a unique position in Asia despite the increased competition.  

As regional neighbors like South Korea tighten regulations around unsuitable crypto exchanges, and Hong Kong develops a comprehensive license regime, Singapore’s budgetary decisions will have far-reaching implications.

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