By
Chimamanda U. Martha
October 3rd, 2023
Mónica stated that Singapore was chosen as a “jump point” into the larger Asian market because it has developed into a center for cryptocurrency businesses and has a robust regulatory framework.
Anchorage Digital has announced a new batch of institutional partners in Asia, as part of its mission to expand its platform into the region. According to the October 5th announcement, the US regulated cryptocurrency custody specialist has now partnered with Bitkub, FBG Capital, GMO-Z.com Trust Company, IOSG Ventures, Dream Trade, and Antalpha.
According to Diogo Mónica, co-founder and president of Anchorage Digital, Asia’s financial institutions and affluent investors have some of the biggest exposures to cryptocurrencies on the planet.
However, several countries, including Singapore, where Anchorage currently has a 10-person office, have slightly scaled back their support for digital assets after the Monetary Authority of Singapore (MAS) called for a crackdown on irresponsible cryptocurrency companies.
Mónica stated that Singapore was chosen as a “jump point” into the larger Asian market because it has developed into a center for cryptocurrency businesses and has a robust regulatory framework.
The co-founder also added that the fact that Anchorage is a US federally regulated cryptocurrency company means that increased scrutiny actually works in its favor, and having to deal with just one regulator, the MAS, as opposed to the variety of watchdogs in the US, makes life easier.
“It’s about being in a regime that’s friendly towards crypto and that businesses want to do business in. We’re institutional only, institutions are going to Singapore, so we’re following suit,” she stated.
“Currently about 10% of our business is in the Asia region, but we are projecting it to become closer to 10, to 20, to 25%, in the next 12 to 18 months. And I can tell you that working with regulators in Singapore is a breath of fresh air,” she added.
Anchorage is a regulated cryptocurrency platform that offers businesses infrastructure and integrated financial services. Currently, the company has business hubs in Portugal, Singapore, and the United States.
After meeting with regulators in those countries, Mónica told reporters that he sees “loads of possibilities” in the crypto markets of Thailand, Indonesia, Japan, and South Korea as well, though he anticipates the business will require a stronger local presence.
Mónica also stated that Asian institutional investors have revised their stance on cryptocurrency investments in the wake of the collapse of the Terra ecosystem.
He claimed that until recently, Asian institutions had a tendency to place a greater emphasis on product characteristics than asset security. But now that the crypto market has slowed down due to the crash, attention is being paid to company continuity, risk management, and regulation.
