From Bitcoin reaching a new all-time high (or “going to the moon” in crypto speak, to describe a price increase of a digital asset) to China’s ban on cryptocurrency, the year 2021 was eventful for the crypto industry—and this is on top of rising global interest in DeFi (decentralised finance) systems, NFTs (non-fungible tokens), Web3 and the metaverse.
Homegrown crypto platform Coinhako, which is among the longest-standing platforms in the Asia-Pacific region, reported a stellar year of growth with a total trading volume of approximately $7 billion in 2021—a 1,200 per cent increase from the previous year. In the same period, the company saw a 522 per cent year-over-year growth when it comes to account openings, and by year-end its total registered users more than doubled to almost 400,000 as compared to the year before.
“It’s an industry that’s still evolving. The ecosystem is growing rapidly, especially in the past 12 to 24 months,” says Yusho Liu, Coinhako’s co-founder and CEO. “We are like a bridge operating between the world of crypto and fiat, and a gateway into the Web3 ecosystem.”
But with almost 600 cryptocurrency exchanges worldwide trading in various digital assets, why should investors go to a local crypto exchange?
For one, a good regulatory framework. Last month, Coinhako was granted the official approval for a major payment institution licence from the Monetary Authority of Singapore (MAS). This means that the platform can now formally operate as a regulated provider of digital payment token, or DPT, services, further strengthening its position as Singapore’s leading provider of crypto-based solutions.
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“A local exchange also means that investors are locally supported should they come across any issues, and I think that’s important because it builds trust,” says Liu. “Then there’s also the convenience of local transfers. With today’s consumer request for speed and convenience, you want the money to be transferred immediately. There are also different classifications of crypto exchanges: there are the non-regulated cloud-based exchanges, which creates more openness but also some form of risk, whereas we are the regulated platform serving the local market.”
Furthermore, “the fact that MAS has taken steps to regulate the sector simply means this is serious business and not some fly-by-night industry”. Liu adds, “When we first started, it obviously took some time for them to understand, but over the years you see that they are regulating the industry. So what does this mean? It means that this is a worthwhile industry and it’s only going to get bigger.”