Singapore: A Web3 Hub?

At the panel titled "Singapore: A Web3 Hub?" on 19 September 2024 at TOKEN2049 Singapore, the panel consisting of Bibhu Pattnaik, Writer/Editor of Benzinga who is moderating; Emma Cui, Founder and Managing Partner of LongHash Ventures; Hassan Ahmed, Country Director of Coinbase Singapore; and Fiona Murray, Managing Director, APAC of Ripple, talked about how Singapore is already a Web3 hub, the talent poot, and how education and awareness is important.

Singapore is Already a Web3 Hub

Over the past decade, the enthusiasm for Web3 and blockchain technology in the Far East has noticeably intensified, especially in contrast to Singapore.

What distinguishes Singapore as a potential hub for Web3?

Cui brings a unique perspective, having originally moved from China to Singapore for her university studies before spending time in Australia and Hong Kong.

Upon returning to Singapore six years ago, she observed a consistent effort by the nation to attract talent.

In her view, Singapore is not only emerging as a significant hub for Web3 but is also gaining prominence across various other industries.

Several factors contribute to this transformation.

Cui listed down the factors:

“One, I think it is the meritocracy based kind of society, right? You are always open to talents, always open to, you know, super easy to get phase out and come and work here. And then second is the tax regulation, right? There is no capital gain, I think, which is very relevant to a lot of crypto holders as compared to many other countries, the tax regulation. And the third thing is with regards to specific Web3, I remember back in 2019, Singapore has already issued a digital token offering guide.”

By establishing transparent regulatory frameworks, the government aims to facilitate industry growth.

Together, these elements have positioned Singapore as an increasingly vital hub for Web3 development.

Taking a broader perspective, Singapore has successfully established itself as a financial hub and, over the past decade or so, evolved into a leading FinTech center, according to Ahmed.

This same progression is now evident in its embrace of digital assets.

What makes Singapore truly stand out is its open economy, which is deliberately designed to foster growth.

The country's policies and incentives are crafted to attract a global influx of talent and investment, while encouraging companies to establish regional headquarters or operational offices there.

For businesses like Coinbase, which have the flexibility to choose global locations, Singapore emerged as a clear choice.

It offers a strategic gateway to other markets, access to a skilled talent pool, and a high degree of regulatory clarity—key factors that align with our long-term investment and operational goals in the region.

He noted:

“So when we were thinking of how to really enter the impact region the right way, Singapore really stood out to us as that right combination of access to, you know, gateway to other markets, access to talent, just that level of regulatory clarity that we needed for our business model to be able to set up roots here and then invest in the long term.”

Murray concurred that from their perspective, Singapore is not just a potential Web3 hub; it has firmly established itself as one today.

First, regulatory clarity is paramount.

Monetary Authority of Singapore (MAS) has been at the forefront of setting global standards, providing a clear framework that enabled companies like Ripple to secure licensed operations.

This level of guidance is something we hope other jurisdictions will adopt to foster safer, more effective collaboration.

Second, innovation in tokenisation thrives here, supported by critical infrastructure.

In Web3, having access to banking services is essential, yet not always guaranteed in other regions.

In Singapore, banks are encouraged to collaborate with responsible Web3 organisations, creating an environment where innovation can flourish.

Lastly, Singapore's reputation for stability plays a crucial role.

When developing cutting-edge technology, the assurance of a stable legal system and strong governance is invaluable.

This foundation allows businesses to focus on growth without the uncertainty of regulatory or operational disruptions.

In every way, Singapore has already cemented itself as a Web3 hub according to Murray:

“Singapore has a reputation for stability and when you're doing crazy exciting things with technology, it's really important that as you're building, you've got stability of the legal system and you can rely on the organizations around to have governance and to enable you to grow without worrying about all of that. So yeah, absolutely Singapore is already there.”

Singapore is notably ahead when it comes to fostering Web3 and blockchain innovation.

Specifically, Ripple, for instance, operates a global payments network that utilises digital assets for real-time cross-border settlement, with Singapore serving as a key hub in this network.

In Singapore, Ripple holds a Digital Payment Token (DPT) license, which permits the sale and processing of digital tokens.

This license has been pivotal in allowing Ripple and other forward-thinking organisations to establish a strong operational presence here.

The regulatory framework in Singapore not only supports such activities but also accelerates the adoption and growth of Web3 platforms, she pointed out.

This combination of progressive policies and regulatory clarity is what solidifies Singapore's status as a leading hub for blockchain innovation.

Singapore Has a Clear Blueprint

The establishment of a fit-for-purpose licensing framework for digital payment tokens has been a key enabler for innovation in Singapore.

This clear regulatory foundation sets the rules of the game and fosters confidence in the ecosystem.

Beyond that, the MAS maintains an open dialogue with the industry, which is crucial given the nascent nature of the space.

MAS often releases consultation papers, actively seeking input from industry associations and individual companies.

This collaborative approach ensures that policies balance innovation, market access, and consumer protection.

Moreover, Singapore's commitment to fostering growth extends beyond MAS.

Agencies like the Economic Development Board (EDB) also play a critical role in attracting businesses to Singapore.

Acting as the country's business development arm, the EDB works tirelessly to highlight why Singapore is an ideal location for companies looking to thrive in the region.

This collective effort solidifies Singapore's reputation as a leading hub for digital innovation.

When considering Singapore as a base for a venture startup, particularly in the Web3 space, its regulatory environment stands out as both supportive and straightforward.

The process of incorporating a business is notably efficient, with a well-defined blueprint that makes it easy to get started.

Singapore’s regulatory clarity also extends to areas like self-custodial businesses and on-chain protocols, which are exempt from certain regulations.

This contrasts with other jurisdictions, including the US, where overregulation can sometimes stifle innovation before it is necessary.

For Web3 developers and entrepreneurs, Singapore offers not only regulatory clarity but also tangible support.

Government grants, especially through the EDB, provide incentives for startups, while access to local and regional talent further strengthens the ecosystem.

Many projects benefit from a dual operational model, leveraging both Singapore and neighbouring Malaysia for additional resources.

Ahmed expressed that Singapore's ecosystem is multi-dimensional:

“So overall, I'd say that it's relatively straightforward. It's still complex, but it's relatively straightforward. And the other maybe thing to follow is when we think about ecosystems, is that they're ecosystems because they're multi-faceted and they're multi-dimensional. So we have builders and projects, we have VCs like LongHash, we have service providers like Ripple and Coinbase, you know, we have regulators that are also in the mix. And so you really have that village that's kind of working together to make sure that these things are circular and we're able to grow together as well.”

Headquartered in San Francisco, Ripple operates globally, working with major banks and new entrants tokenising on the XRP ledger.

However, in the US, regulatory ambiguity has severely hindered innovation, prompting it to shift elsewhere.

Jurisdictions like Singapore, the UK, Europe, the UAE, and Japan have embraced progress by partnering with the private sector and providing regulatory clarity.

Singapore, in particular, stands out.

Ripple runs its global payments network here, with over 50% of the company's global digital asset payment flows routed through Singapore, far surpassing US volumes.

The difference is stark: Singapore’s forward-thinking regulatory framework not only fosters innovation but also attracts major players in the Asia-Pacific region, further accelerating growth in the Web3 space.

Blockchain Education in Singapore

Singapore excels at anticipating emerging trends and proactively developing the talent needed to meet future demands.

Its universities provide world-class education, but what truly sets Singapore apart is its openness to collaboration with the private sector.

This synergy between academia and industry not only enhances the talent pipeline but also ensures that the skills being developed are directly aligned with the needs of the evolving market.

It is a forward-thinking approach that strengthens Singapore's position as a global innovation hub.

Murray stated:

“So at Ripple, we take this super seriously. In 2018, we launched the University Blockchain Research Initiative. So we partnered with universities around the world to provide, and so far from 2018, we've provided over $60 million in funding to help universities and academia do real-world research and solve real-world problems, which is something that I think we all agree is really important in the Web3 space.”

She continued:

“So we see that education has a direct impact on your ability to work and the ability for Singapore to fuel the talent in this space…Once you have education and you build and you inspire a group of people to build in Web3 and blockchain, you need to have more funding. So the next thing that we've done is we have the XRPL Accelerator Program. We have a hub here in Singapore, and year-to-date we've provided 11 organizations with early-stage seed funding so that they can build blockchain here at Singapore.”

Last year, Coinbase launched a summer intern programme in Singapore, which proved to be highly successful.

This year, Ahmed said they ahve expanded the programme to include their largest intern class yet.

They have also established ongoing dialogues with both student groups and faculty, who are keen on shaping curricula that remain aligned with current industry practices.

Looking ahead, Coinbase aims to explore opportunities for deeper collaboration, such as co-developing programs and providing direct input into university curriculums.

After all, education is an ongoing process, and staying connected to real-world applications is essential.

Is Web3 Truly Creating a Robust Job Market?

With the influx of Web3 companies in Singapore, it is driving significant growth in employment opportunities.

According to Cui, there are two key factors to consider.

First, the sheer size of the sector has expanded dramatically.

Many Web3 companies, which started as small startups just a few years ago, have now grown into multi-billion-dollar enterprises, hiring hundreds of employees over a short span.

This growth is not just incremental but exponential.

Second, and equally important, is the quality of the jobs being created.

It is not merely about adding positions—there is a noticeable rise in high-caliber, high-impact roles.

Many leading crypto and blockchain companies are establishing their regional or even global leadership teams in Singapore.

Moreover, founders of successful projects from countries like Vietnam, China, and Thailand often relocate to Singapore due to the sophistication of its ecosystem.

This makes Singapore not just a hub for job creation, but for fostering top-tier talent in leadership and innovation.