Crypto-Hotspots: KPMG names Germany, Portugal, and this city-state

KPMG, a Big 4 accounting firm, reported in study that investments in the crypto and blockchain business are likely to exceed $30 billion by 2021.
Crypto-Hotspots: KPMG names Germany, Portugal, and this city-state

KPMG, previously stated it held Bitcoin and Ethereum on its Canada arm’s balance sheet, has now revealed in research that investments in the crypto and blockchain industry are expected to reach $30 billion by 2021. This was more than five times the $5.5 billion forecast for 2020.

While the developing crypto sector in North America has been a positive development throughout this period, KPMG’s “Pulse of Fintech 2021” research shed light on other locations that might soon be dominating the field. Regulatory headwinds, the research added, have contributed to most of this increasing trend in the Europe, Middle East, and Africa (EMEA) and Asia-Pacific (ASPAC) areas.

Positive regulations encourage expansion

In 2021, cryptocurrency interest in the EMEA area has increased. In reality, the survey singled out countries with “clear restrictions,” such as Germany and Portugal. Last year, Coinbase chose Germany as its European headquarters, becoming the first business to be approved by Germany’s Federal Financial Supervisory Authority for crypto-custody.

As the region’s once-dominant direct-to-consumer industry matures, B2B payments and cryptocurrencies will be the next big thing in FinTech. A rise in allocation to the decentralized finance (DeFi) area, as well as a “stronger push for the adoption of a single regulatory framework for crypto,” are two more trends to watch this year.

China’s crypto ban 

The ASPAC area saw similar expansion in the digital asset industry as a result of legislative changes. According to the paper, China’s nationwide ban on cryptocurrency trading and mining, which took effect in mid-2021, resulted in neighboring areas emerging as viable crypto-hubs.

“During 2021, China continued to enhance regulations in the fintech space — most notably banning cryptocurrency transactions, bitcoin mining, and the facilitation of cryptocurrency trading. While the uptick in regulatory activity in China led some fintech investors to pull-back from China, it also raised the profile of other fintech hubs in the region — including India and Singapore.”

While India’s attitude on the business is also murky, Singapore has embraced the chance. In the year 2021, the city-state saw $1.48 billion poured into the crypto-space. Although, rather than services, the majority of this was focused on software and underlying infrastructure.

The government’s attempts to boost the market also had a significant impact in this direction, according to the research.

Singapore’s government, on the other hand, maybe about to step up its attempts to bring the unregulated market under control. This already includes tight reporting and registration requirements for cryptocurrency businesses and exchanges, as well as a crackdown on cryptocurrency advertising and Bitcoin ATMs.