[TOKEN2049 SG 2024] Will Singapore become a Web3 hub?

According to a Forbes article published earlier this April, China, India, and Hong Kong have made waves for thriving Web3 ecosystems.

While crypto activity is active in those countries, some experts believe Singapore will become another Web3 hub in Asia.

As part of this year’s annual TOKEN2049 Singapore convention—the world’s largest crypto event—Emma Cui, founder and managing partner of venture capitalist firm LongHash Ventures, joined Hassan Ahmed, country director for Singapore at Coinbase, and Fiona Murray, managing director for APAC region at Ripple for a panel discussion last Thursday (September 19) to share their insights.

Singapore as a potential Web3 Hub

Having an eye for talent is crucial in any industry, and the Web3 space is no different. Cui, who has travelled in and out of Singapore for studies and work, noted that the city-state has “always been relentlessly seeking talents”, and attributed it to the nation’s meritocracy-based system.

On the macro scale, Ahmed stated that Singapore has cemented itself as a financial and fintech hub over the last decade, describing the country as an “open economy” which is deliberately designed for business growth.

He elaborated that Singapore incentivises companies to set up their regional headquarters and operational offices in the country, and for Coinbase, setting up their offices here allows many doors to be opened to the rest of the APAC region.

“When we were thinking of how to really enter the APAC region the right way, Singapore really stood out to us as the right combination of access to other markets, access to talent, the regulatory level that we needed for our business model to be able to set up roots here and invest in the long-term.”

On the other hand, Murray shared that Ripple already views Singapore as a Web3 hub. “Not a potential one, but it’s all happening right here, right now,” she stated.

Aside from having regulatory clarity and the right frameworks to legitimatise businesses, Murray highlighted the importance of innovation and the need to have access to banking services.

Every entity needs a bank account, and that’s not given in many jurisdictions here. The banks are encouraged to work with safe [and] responsible Web3 organisations, and that makes a huge difference to being able to innovate effectively.

Fiona Murray, APAC managing director for Ripple

She added that Singapore has a reputation for stability, where given the “crazy” nature of technological innovations, entrepreneurs and business leaders need to rely on stable organisations to grow without worrying about political troubles.

The “smooth road” set by regulations

On the regulatory front, all three panellists went through the “smooth road” facilitated by the Singapore government and relevant agencies.

“Having that foundation of a ‘fit-for-purpose’ licensing framework for what they call digital payment tokens sets the stage right, because it sets the rules of the game in a very clear way,” added Ahmed.

In particular, the Monetary Authority of Singapore (MAS) maintains an open dialogue with industry players and releases consultation papers, which is essential given the nascent market stage. This collaborative approach allows both parties to balance access, innovation, and consumer protection.

Two other notable agencies that were given a shoutout were the Economic Development Board of Singapore (EDB) and Temasek for facilitating funding for Web3 firms, with the EDB offering grants to startups.

Ahmed added that it is “easy” for a company to be incorporated in Singapore, and the regulatory clarity helps the business grow within set boundaries. It is also worth noting that there are regulatory exemptions, which the lack of would often stifle innovation before it is needed.

“Overall, I’d say that [the process is] relatively straightforward. It’s still complex but relatively straightforward,” he concluded.

The role of education

Aside from government agencies and ministries, Singapore’s local universities are also working on building the next generation with the skills to live in a possible Web3-powered world.

Murray expressed her enthusiasm and said, “Singapore is fantastic at predicting what trends there are and then building talent to fit those requirements and those needs that are coming up.”

She explained that education is an essential operational pillar at Ripple, where they launched the University Blockchain Research Initiative in 2018. This programme funds universities and academia to conduct research and solve real-world problems. To date, Ripple has provided over US$60 million under the initiative.

In Singapore, Ripple partnered with the National University of Singapore (NUS) to launch the NUS FinTech Lab. The company also funded the enrollment of 300 students and mid-career professionals during the COVID-19 pandemic, and two-thirds of the cohort found full-time work in fintech at the programme.

Murray commended Singapore universities for acknowledging the impact of Web3 in today’s society and shared that she hopes they can also work with the private sector in the future.

Efforts in education also present an opportunity for the creation of new jobs. Cui explains that there are two metrics to look at.

One is how big the sector has expanded, with many startups becoming multi-million dollar companies over the years, where the company will need to increase their headcount as they grow.

The second factor comes down to the quality of the jobs created. “It’s not just about creating jobs, but high calibre, high impact jobs,” Cui iterated, with many companies establishing regional or leadership teams in Singapore.

Ahmed ended the panel stating that Singapore is undergoing its second or third cycle with digital assets, with the FTX saga forcing them to rethink their approach in the world and shift their focus from offering useful products to commercialisation.

We’re very excited to be a part of that experience, and we’re going to do our part to push that movement forward as well.

Hassan Ahmed, country director, Singapore at Coinbase

• Find out more about TOKEN2049 here.
• Read other articles we’ve written about cryptocurrencies here.

Featured Image Credit: Vulcan Post