In 2023, more than 11% of global blockchain and cryptocurrency venture capital funding went to companies in Hong Kong and Singapore.
The survey results mark a significant rise from the 2021 allocation of just 2%.
PitchBook analysts said the change was attributed to several factors, including the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange and its subsequent domino effect of bankruptcies, which forced many U.S. cryptocurrency companies to reevaluate their strategies.
The report said regulatory uncertainty and the impact of major cryptocurrency firms such as Binance and Gemini running afoul of authorities have forced many companies to reduce the size and scale of their U.S. operations.
Some have even sought refuge in global cryptocurrency hubs overseas. The report cites Bryan Chow, partner at web3 venture capital firm Side Door Ventures, as saying that many cryptocurrency companies have moved their base of operations to Hong Kong to take advantage of the government’s supportive stance toward web3 and cryptocurrencies.
PitchBook also highlighted mainland China’s ban on cryptocurrency trading as an opportunity for Singapore and Hong Kong to be at the forefront of decentralized finance.
Hong Kong issued its first retail trading licenses for Bitcoin ( BTC ) and Ethereum ( ETH ) in August, while Singapore granted a full trading license to Coinbase in October.
Despite the collapse of local cryptocurrency lender Three Arrows Capital (3AC), the Singapore government remains supportive of the industry, albeit with tighter regulation.
In November, PitchBook reported that total cryptocurrency funding fell by more than 60% in the third quarter of 2023 compared to the same period in 2022. The situation has forced several crypto startup funders, including Coinbase, to scale back their support. #香港 #加密法规
