Singapore has now emerged as the leading business-friendly destination for East Asian Crypto companies aiming to raise funds via initial coin offering (ICO).
The fact that the number of companies launching ICOs in Singapore has skyrocketed in last few months.
Currently, Singapore is the third largest ICO launchpad in the world regarding fundraising, after U.S. and Switzerland.
The following is the list of top 10 countries for ICOs:
- United Kingdom
- Hong Kong
“It may be too early to term the city as an “ICO hub,” owing to a reasonable amount of undone work, a lot of significant activity and token issuances have taken place in the city since September 2017”, said, Anson Zeall, chairman of Association of Cryptocurrency Enterprises and Startups in Singapore.
How did Singapore become the third largest ICO in regards to fundraising?
After China declared ICOs as “Illegal” tool for fundraising because of the increasing worries due to money laundering and other scams. The ban negatively impacted the ICOs in China and many of the companies had to shut down.
Many companies turned to Singapore after the Beijing’s ban. Daisy Wu, Owner of Beijing based Xender, moved to Singapore “We wanted to avoid legal risks,” she quoted. Her company now wants to raise US$10 million through an ICO for a file-sharing service, the news outlet detailed. “Many Chinese companies have gone to Singapore for ICOs…We all want to play it safe,” she added.
The ban in China came unexpectedly and with a shocking blow to all the cryptocurrency enthusiasts with the crypto market experiencing a massive sell-off in the days after the directive. China’s loss benefited Hong Kong and Singapore with significant economic gains for both the countries.
Ben Yates, a lawyer with RPC specializing in fintech and cyber law, said that he has seen significant growth in ICO-related inquiries since September, he added,
“It is very likely that the surge in the number of ICO inquiries we have received in the past few months is at least partly a consequence of the restrictions in mainland China…The obvious next step for many Chinese ICO issuers to take is to cross the border. You can still speak Chinese, but you can operate in a more favorable regulatory environment.”
Similar to the ban in China, South Korea has also banned ICOs which has forced the local users to look somewhere else. The local users had also found two good options that are Hong Kong and Singapore.
Taking the latest reports into consideration, South Korean companies are planning to relocate, which can be another good news for Hong Kong and Singapore as there will be more businesses set up in these places in the near future.
So, the reason why Singapore has reached the third place in fundraising, one major part is played by China and South Korea. As all the local users moving to Singapore and Hong Kong is gradually going to increase business in both the countries.