[This article is originally published on FintechNews.sg on 27 Sep, 2019. DigiFinex is ranked top 3 among 20 registered cryptocurrency exchanges in Singapore. Feature image source: thedailycpa.com ]
Cryptogenes, a market research firm operating out of Switzerland through the legal entity HeyDays Services, has released a report detailing the results of an audit of Singapore’s 20 centralized cryptocurrency exchanges.
The audit evaluates the overall quality of all of Singapore exchanges based on a rating of their trustworthiness, trading experience, fee structure and customer support.
Cryptogenes said the auditing methodology was created in collaboration with the School of Management Fribourg in Switzerland, and the scientific auditing algorithm was double-blind peer reviewed by the Global Finance Association, among others.
The 20 Singaporean cryptocurrency exchanges audited for the report have a combined turnover of US$620 million per day, US$18 billion per month, and US$223 billion per year. This trading volume surpasses that of certain traditional exchanges, the report says, highlighting that the cryptocurrency market is growing steadily despite being largely unregulated.
Findings from the audit
The report highlights the best crypto exchanges in Singapore and the worst crypto exchanges in Singapore.
Liquid, a platform operated by Quoine, a startup with Japanese origins, was found to be the “best overall cryptocurrency exchange in Singapore” and distinguishes itself for its “excellent” level of trustworthiness as well as the “very favorable fees.”
Cointiger was ranked the second best platform, with the report noting the exchange’s good fee structure and balanced score on trustworthiness, trading experience and customer support.
In third position is DigiFinex, which stands out by offering one of the best trading experiences with more order types and trading pairs than the other exchanges included in the study.
The report also points out the exchanges with the “worst overall results.” These are Ebuycoin, INCX and Triple Dice. These exchanges were found to be more expensive to trade on, while offering inferior trading experience along with poor customer service. The algorithm also found them to be amongst the least trustworthy, the report says.
Finally, BCOIN was officially named “the worst of all.” The verdict was made following an announcement made by the company that its platform would be undergoing “substantial upgrade and maintenance.”
Users of BCOIN had been unable to access the platform for over a month, and the company advised users to contact them through email to retrieve their funds, asking to send confidential information.
According to the report, the case of BCOIN demonstrates what can go wrong in the crypto world and makes a strong case on why it is essential for users to prefer exchanges with a high trustworthiness score. “Without regulation, companies can just suspend operations or downgrade operations significantly, without much consequence at all,” it says.
The report notes a disappointing overall performance by Singapore cryptocurrency exchanges, adding that even well-known exchanges like Binance, which launched in Singapore earlier this year, and Upbit, a startup backed by Kakao, perform rather poorly, showcasing that contrary to popular belief, brand recognition is a sufficient factor when choosing an exchange.
Additionally, the research also found that the cheaper exchanges are those that perform above average on the other auditing dimensions, meaning that “trading on a quality exchange does not have to be expensive.”
Finally, it advises consumers to do their own research and use objective third party data and insights when choosing an exchange given the current absence of detailed regulatory framework.
Moving forward, the company expects market consolidation with “only the best exchanges surviving and capturing most of the market.”
In recent years, Singapore has emerged as one of the most important cryptocurrency hubs in Asia. That’s thanks to the government’s supportive stance towards fintech and technology in general.
Earlier this year, the government proposed to exempt digital payment tokens from a sales tax when they are used to pay for goods and services, a move that will likely benefit cryptocurrency exchanges, asset managements and blockchain entrepreneurs, analysts have said.