FinTech companies in Singapore raised $378m in funding during the second quarter of the year, a 55% reduction from Q1. Deal activity however remained steady with a less dramatic 23% decline from the first quarter of 2022 and deal activity in 2022 is still projected to surpass 2021 levels by 11% to 230 deals in total. 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
Blockchain & Crypto was the most dominant FinTech sector in Q2 2022 with 24 deals and accounted for 48% of total deals in the country for the second quarter of 2022. This dominance may tail off in the third quarter as Singapore introduced new Crypto regulations in April 2022. The new regulation requires digital asset providers located in Singapore conducting business overseas to be subject to local Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements. Companies will also have to be licenced and the country has denied over 100 applications of firms seeking to launch Crypto operations as of 11th April 2022. Overall this is positive news for the country as it shows a willingness to integrate Blockchain & Crypto into Singapore financial ecosystem unlike nearby countries such as China which have outright banned Cryptocurrencies.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global.??2022 FinTech Global