Trust Over Low Fees: Singapore's Crypto Investors Are Evolving

Singapore's retail cryptocurrency market is experiencing a significant transformation. As a recent survey reveals, traders are increasingly valuing trust in their chosen platforms over lower transaction fees.

Key Takeaways

61% of Singapore's finance-savvy investors now own cryptocurrency.
Trust is the most important factor in selecting cryptocurrency exchanges, surpassing fees.
58% of investors identify as long-term holders, while 42% have invested for more than two years.
Social media serves as the primary source of cryptocurrency education for 62% of respondents.
Singapore's regulatory environment is progressive but strict, with new measures against unregulated stablecoins.

A survey conducted by finance platform MoneyHero in collaboration with crypto exchange Coinbase found that 61% of so-called "finance-savvy" investors in Singapore currently hold crypto. This survey indicates that trust is the primary factor influencing how these individuals choose their trading platforms, emphasizing reliability over costs.

The research highlights the evolving nature of Singapore's crypto landscape. With traders moving away from merely looking for the cheapest options, the focus is shifting toward regulated environments, security, and long-term investment philosophies.

The study engaged a total of 3,513 retail investors and those interested in cryptocurrency in Singapore. It revealed that 58% of the participants consider themselves long-term investors, with 42% having held their investments for over two years. On average, respondents maintain their crypto investments at below 10% of their total portfolios, typically owning around three different tokens each. This balance in investment strategy reflects a disciplined approach combined with the benefits of diversification.

MoneyHero and Coinbase release a new survey on Singapore retail investors. Source: MoneyHero

Singapore’s ‘finance-savvy’ crypto retail prefers trust over low fees: Survey

A Focus on Long-Term Investment Plans

The findings indicate a deeper and broader adoption of cryptocurrencies in the region. A 61% ownership rate among financially savvy Singaporeans suggests that this asset class is becoming mainstream. Notably, 27% of those who do not currently own crypto expressed an interest in investing within the coming year, indicating further potential growth in the market.

When considering their perspectives on cryptocurrency, respondents displayed varying opinions. About 44% view cryptocurrencies as assets, while 29% regard them primarily as speculative tools. The survey also highlighted the influential role of social media in educating investors—62% of respondents relied on it as their main source of information on cryptocurrencies. However, this reliance also raises concerns about the potential for misinformation.

Following social media, 55% of participants cited friends and family as key sources of information, while 43% referred to news media. Blogs from exchanges were noted by 27% of respondents as another useful educational resource. Confidence in knowledge about cryptocurrency seems evenly split among investors, with 48% feeling assured about their understanding, while 52% indicated a lack of confidence.

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Navigating a Progressive Yet Stringent Regulatory Environment

Singapore has established itself as a prominent financial hub, benefiting from low corporate taxes, business-friendly regulations, and an AAA rating from Fitch. Notably, the city-state was a pioneer in crypto regulation, introducing the Payment Services Act (PSA) of 2019, which provides a comprehensive legal framework for digital payment tokens across Asia.

While Singapore is recognized for its innovative stance on cryptocurrency, it is also known for its rigorous regulatory measures. In June, local authorities mandated that crypto firms stop overseas operations targeting foreign markets, warning of severe penalties, including substantial fines up to $200,000 or imprisonment for up to three years without any grace period.

More recently, the Monetary Authority of Singapore (MAS) addressed the necessity of regulating stablecoins more stringently, pointing out issues with the stability of unregulated tokens. MAS Managing Director Chia Der Jiun emphasized that as stablecoins continue to gain prominence in the market, regulatory measures must adapt to ensure their reliability.

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