Singapore Web3 thrives despite ‘lack of gov’t support’: report

Singapore. / Photo credit: Yasemin Ozdemir/Shutterstock

Singapore’s Web3 sector secured investments worth US$742 million in 2024, accounting for 64% of investments in the city-state’s fintech industry, a report concluded, citing PitchBook data.

This traction occurred despite the perceived lack of government support needed by local industry players.

The report, released by the Singapore Fintech Association (SFA), with support from the Singapore Economic Development Board, did not disclose which companies received funding. Tech in Asia is unable to independently verify the figure.

“Singapore has been labeled as a ‘crypto-friendly’ hub for both investors and builders in the digital asset industry, and has become an attractive hub for both startups and established Web3 companies, especially in Southeast Asia,” said the report titled Singapore: The OnChain State 2025.

The city-state also hosted over 300 Web3 firms and over 30 active VC firms focusing on the sector as of that year.

However, some challenges remain even after various milestones were seen across the industry in 2024.

“Web3 companies still encounter high compliance costs, inconsistent access to banking services, and few innovative schemes tailored to digital assets,” the report noted.

It also said Web3 firms needed to spend hefty sums of money to apply for the right licenses to operate and comply with regulations. Higher wages for chief compliance officers would be another obstacle to overcome.

Moreover, the report found that some firms were reluctant to deal with Web3 companies due to perceived risks associated with the industry.

“There is a growing demand for more streamlined, Web3-specific regulatory frameworks that would enable easier access to both banking and non-banking services critical to business growth,” it said.

The report then cited a lack of awareness about grants and other types of government assistance for these firms. It also referenced a survey participant, who was quoted as saying, “The government lacks support, especially for small players.”

Web3 companies in Singapore referred to Cyberport, Hong Kong’s government-backed digital tech hub, as an example of authorities that can support these firms.

Additionally, these players hope to have a forum to directly engage with policymakers. The firms suggested that Singapore expand its regulatory sandbox to the Web3 industry.