Crypto Asset Investment in 2023, Possibility of Shifting to Countries and Regions with Stronger Regulations: KPMG | coindesk JAPAN | Coindesk Japan

According to KPMG’s “Pulse of Fintech” report for the second half of 2022, one of the world’s four largest accounting firms, despite the global slowdown in crypto assets (virtual currencies) and blockchain, fintech investment in Singapore It was the top field.

This is despite the turmoil in the crypto space of 2022 revealing a key trend of investors shifting to non-crypto solutions. KPMG’s findings also show a “particularly pronounced” decline in the second half of 2022 as investors weigh in on the collapse of Terra, Three Arrows Capital and FTX.

In Singapore, crypto-related funding is down 21% from $1.5 billion in 2021 to $1.2 billion in 2022. Globally, investment in this sector fell from $30 billion in 2021 to $23.1 billion in 2022.

“The volatility in the first half and second half highlights the rapidly changing investor sentiment,” said Anton Ruddenklau, global head of financial services innovation and fintech at KPMG. ing. “But the news wasn’t all negative. RegTech in particular saw an incredible amount of investment in 2022.”

The RegTech space has attracted record investment of $18.6 billion, well above the previous record of $12.1 billion seen in 2021. According to the report, this growth is aimed at ensuring that digital or crypto-related transactions are accurate, transparent, trustworthy and compliant.

As for 2023, KPMG said that “investment in crypto-focused companies is likely to remain very weak,” and that investment is expected to continue in “countries and regions with stronger regulatory frameworks for crypto-asset activity.” expected to shift to

One trend from 2022 that is likely to escalate into 2023 is a shift in investors from blockchain companies focused on the retail market to start-ups focused on providing solutions for the SMB market.

“Crypto-asset investment is expected to be particularly weak in the first half of 2023, but a wide range of blockchain-based solutions, including institutional use cases, cross-border payments, gaming, and NFTs, are expected to see further growth from investors. It will get a lot of attention,” KPMG said.

The report also cites the $300 million funding (the second largest wealth tech deal this year) by Amber Group, which operates a crypto asset business for institutional investors in Singapore and other countries, as an example. said it reflects a trend of increasing access to a wider investor base.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: Crypto Was Singapore’s Top Area of ​​Fintech Investment in 2022 Despite Global Slowdown: KPMG