The crypto segment invested the most in Singapore’s fintech sector in 2022, it reached the highest level in the previous 3 years.
According to recent data released by KPMG Pulse of Fintech, fintech investment in Singapore has hit its peak in the last three years with a total investment of over U.S. $4.1 billion that came from 250 deals closing. Singapore’s total fintech investment deal value rose to $3.4 billion in 2022, a 22% rise over 2021.
Also, it demonstrated a notable growth of 75% from the $2.3 billion overall deal value in 2020. The amount this year is the second-highest fintech investment in Singapore over the past ten years, behind only the $5.62 billion invested in the year prior to the Covid-19 outbreak.
Given the fall in worldwide fintech investment, which plummeted to $164.1 billion, this is a notable accomplishment. The top 3 investment contributors were cryptocurrency and blockchain, followed by payments and wealthtech.
But, the investments were also impacted by the turbulent year for cryptocurrency, which was marked by bankruptcy and frauds. The demise of Terra Sisters, Three Arrows Hedge Fund, and FTX rocked the cryptocurrency community.
Three Arrows Hedge Fund is a Singapore-based cryptocurrency company. The amount of cryptocurrency funding in the nation fell by 21% from 2021. From $1.5 billion to $1.2 billion, it decreased.
KPMG forecasts that as the crypto industry deals with government regulations, investments will continue to be “extremely slow” in the first half of 2023.
