Investment to Singapore fintechs in Q2 down 55% from Q1

Blockchain & Crypto firms snagged the lion's share of deals, but enthusiasm may wane amidst new regulations.

The funding raised and overall deal activity of financial technology companies in Singapore declined in Q2 compared to the previous quarter, according to data gathered by FinTech Global.

FinTech companies in Singapore raised US$378m in funding during the second quarter, 55% lower than in Q1. Deal activity also fell 23% compared to the previous quarter, but overall deal activity in 2022 should still surpass 2021 levels by 11%, according to FinTech Global.

Singapore followed global trends of deal sizes reducing significantly in Q2 from Q1.

READ MORE: Japan fintech investments fall to five-year low in Q1

“Global deal sizes in Q2 2022 have been reduced significantly from Q1 2022 as public FinTech market valuations drop across the board and investor reassess the value of their portfolios,” FinTech Global said in a report.

Per sector, blockchain & crypto accounted for 48% of the total deals in the country during the period, with 24 deals. However, this dominance may trail off in the third quarter with local regulators intensifying its crackdown on blockchain and crypto firms.

In April 2022, new regulations were issued that subjected digital asset providers to local Anti-Money Launder (AML) and Combating the FInancing of Terrorism (CFT) requirements.

Singapore has also reportedly denied over 100 applications from firms seeking to launch crypto operations as of 11 April.

In the long run, however, FinTech Global said that this is positive news for the country as the regulations show that Singapore is willing to integrate Blockchain & Crypto into its financial ecosystem, unlike nearby countries such as China which have outright banned cryptocurrencies.

Follow the link s for more news on

cryptocurrency

Cryptocurrency in banking

A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia