As Singaporeâs growth continues to challenge the worldâs other financial services hubs, itâs also attracting bitcoin entrepreneurs who see it as fertile ground for a more disruptive kind of innovation.
Singaporeâs unique position as a fully independent city-state in the middle of Asia has served it well over the past few decades.
Both policy decisions and geopolitical fortune have seen it achieve one of Asiaâs highest standards of living, a high concentration of millionaires, and $450 billion in offshore assets under management (half of which are from China).
Expats have long flocked to Singapore from Commonwealth countries, but new and wealthy communities have begun to arrive from places like Japan, Hong Kong, and the United States.
Theyâre here for the money and tropical lifestyle, fleeing dormant economies and more forbidding regulatory environments back home â and have brought Singaporeâs foreign resident population to 2 million of its total 5.5 million.
Add to that a thriving IT industry covering hardware production, education and Asiaâs most active network of startup incubators, and bitcoin enthusiasts are taking note.
Steve Beauregard is the Founder & CEO of GoCoin, a startup bitcoin payment processor founded in April 2013 with a private beta launching after the end of summer.
The Californian arrived in Singapore just a few weeks ago and plans to settle for good once he can relocate his family.
Though local customers are not the companyâs primary target for now, GoCoin will be based in Singapore with plans to draw from the growing pool of local IT talent and be central to large regional populations of underbanked people.
âUnlike California, the Singapore government is very efficient and pro-business. They have many startup incubation schemes which are perfect for early-stage companies looking for a leg up,â said Beauregard.
âItâs a strategic initiative to not only launch where our competition isnât but to domicile in a progressive country, where innovations like bitcoin are encouraged and not stymied by legal subpoenas from both state and federal levels struggling to understand what is evolving.â
GoCoin plans to innovate in the bitcoin payment processing sector by opening its API and allowing eCommerce developers to fully integrate with it. In the spirit of open systems and the trust economy, GoCoin will keep âno special powersâ and further provide a built-in reputation management system.
âWith bitcoin payments being final, we see the merchant rating system as critical to providing a fair gateway platform,â Beauregard said.
The Singaporean bitcoin meetup he co-hosted last week was impressive in the number of attendees and, while it didnât have the âbig gunsâ of the bitcoin ecosystem found at his Los Angeles gathering, he found the group had a passion and technological depth equivalent to those across the Pacific.
As a US citizen, Beauregard has been taken aback by international financeâs newfound reluctance to deal with Americans. That reluctance has included both bitcoin exchanges and regular Asian banks.
âIâve now sent seven different ID documents to Mt. Gox and they still will not verify my account,â he said. âAnd the banks here in Singapore were quite open telling me to my face, âWe donât open accounts for American citizens.'â
Thereâs no guarantee that Singaporeâs own regulators will be any kinder to bitcoin in the long run. Indeed, just this week the Monetary Authority of Singapore (MAS) warned bitcoin traders to âbe waryâ of the currency due to an inability to identify individuals behind transactions.
That warning sounds tame compared to other countriesâ pronouncements questioning bitcoinâs very legality, however, and MAS has not yet announced any plans to regulate bitcoin.
In fact they have taken a more positive stance than their statement suggests, treating bitcoin like any closed virtual currency.
There is also the question of whether a jurisdiction so heavily associated with traditional financial services will embrace such a new form of currency or asset without any backlash.
Big government and big finance aside, the number of small traders accepting bitcoin in Singapore is growing thanks to its active IT sector.
GoCoin has signed up âabout a dozenâ merchants internationally for its initial private beta, mostly companies well familiar with bitcoin like mining hardware vendors, and also other hardware, software and gadget vendors.
âThey were some of the easiest software sales Iâve ever made, and Iâve been in this industry for 20 years,â Beauregard said. âWe said âminimal fees, no chargebacks,â and it was like âwhere do I sign?'â
Convincing other industries to jump on board may be as challenging as bringing the traditional financial sector into the bitcoin world.
âItâll be a long grind I know, but Iâd love to go after telcos, for that time in the future when youâre all carrying bitcoin around on a mobile phone.â
Feature image: gocoin.com