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Singapore Blockchain, Crypto Investments Climb in 2022

Singapore's robust regulatory landscape is attracting interest from investors especially in light of the FTX collapse.

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Investments into the blockchain and crypto industry flourished in 2022 despite the market capitulation, according to the latest Pulse of Fintech Report by KPMG.

The audit firm estimates that global fintech investments hit US$164.1 billion across 6,006 deals last year, down from a record US$238.9 billion from 7,321 deals in 2021, with the top three investment areas being payments, followed by blockchain and crypto, and regtech.

The total investment into the blockchain and crypto space fell to US$23.1 billion in 2022, after it reached a high of US$30 billion in 2021. However, the level of interest in the space remains elevated as compared to all years prior to 2021.

According to KPMG, the bulk of investment in the space came in the first half of 2022, including the US$1.1 billion SPAC merger of Japan-based Coincheck and a US$1.1 billion VC raise by Germany-based Trade Republic. Deals in the second half of the year were comparatively smaller, including the US$300 million VC raise by Singapore-based crypto trading platform Amber Group, the US$200 million raise by Ethereum development firm Matter Labs, and a US$165 million raise by DEX (decentralised exchange) Uniswap.

Read more: Will Crypto VCs Pivot Away From "Go Big, Go Fast" Mode in 2023?

In Singapore, investments flowed into the top three areas of blockchain and crypto, payments, and wealth management. It's estimated that investments for the sector grew 22% to reach US$4.1 billion last year, with 250 deals in mergers and acquisitions, private equity, and venture capital.

KPMG also noted that jurisdictions such as Japan, Hong Kong (SAR), and Singapore are shifting their focus to stronger crypto regulations, and are attracting interest from crypto players and investors in the wake of the FTX collapse.

Related: Crypto Startups Put Funding on Ice