Security concerns like hacking and fraud continue to deter wider consumer adoption of cryptocurrencies.

Whilst Singapore remains a key hub for institutional crypto adoption, weak consumer interest has limited broader adoption compared to regional leaders like Thailand and the UAE.

In its report, Linklaters said that 23% of Singapore's internet-connected population owns or uses cryptocurrency, placing it in the mid-tier of crypto adoption across APAC.

This figure is close to the regional average of 26%, but it lags compared to emerging markets where practical needs, such as remittances and financial inclusion, are driving higher adoption rates.

Linklaters noted that barriers to adoption in Singapore remain significant, with 30% of respondents citing legal or regulatory issues as a concern, which is notably higher than the APAC average.

Additionally, security concerns like hacking and fraud continue to deter wider consumer adoption of cryptocurrencies.

Despite challenges in consumer uptake, Linklaters emphasized Singapore's regulatory environment is crypto-friendly and designed to attract institutional players.

The country's strong financial infrastructure positions it as a leader in institutional innovation, although this focus has not yet translated into broader consumer demand.

The firm also said consumer sentiment in Singapore lags behind emerging markets. These markets, driven by practical needs, have outpaced Singapore in achieving widespread adoption.