What beckons for the crypto-economy in 2022

2021 was a watershed year for cryptocurrencies in many ways. For one, El Salvador adopted Bitcoin as legal tender in September, essentially becoming the first sovereign entity to legalise and sanction Bitcoin as the currency of choice. Non-fungible tokens (NFTs) have also undergone 'mainstreaming' with high-profile celebrities (Singapore's own JJ Lin among them) collecting or launching NFTs (such as Melania Trump's painting of her own eyes). What is more, according to Galaxy Digital, blockchain and crypto startups saw a record US$32.8 billion in funding from venture capital on more than 2,000 projects in 2021, which is double that of 2020.

What can we expect in 2022?

First, we are going to see much stronger regulation by governments and central banks around the world that will demand tighter 'know-your-customer' requirements and stronger anti-money laundering measures for exchanges. Expect to also see more countries formulating taxation regimes for cryptocurrencies in some form and even some countries start holding a small portion of cryptocurrencies in their foreign reserves.