SINGAPORE – A cryptocurrency exchange has teamed up with Singapore charities to enable donations to be made in digital assets.
The charities participating with the Crypto.com exchange are The Salvation Army, Care Singapore, Cycling Without Age Singapore, Minds, Dementia Singapore and Limitless.
Crypto.com said it will help to convert donations made in cryptocurrency into fiat currency.More details will be announced soon.
When asked how it intends to keep funds safe and deal with money laundering risks, Crypto.com said that it places consumer protection “at the very core of its operations”.
The exchange also noted that it has an “ever-growing library” of regulatory and security certifications, such as those from Britain’s Financial Conduct Authority and Dubai’s Virtual Assets Regulatory Authority.
Crypto.com Singapore general manager Ang Chin Tah said helping charities accept donations in digital assets will allow them to reach more tech-savvy donors.
The Monetary Authority of Singapore granted Crypto.com a major payment institution licence in June for digital payment token services.
This allows the exchange to continue extending these services to customers in Singapore, including e-money issuance, account issuance and cross-border and domestic money transfers.
Most of the charities in the new initiative told The Straits Times that they had never received donations in the form of cryptocurrency.
Some, like Limitless, have fielded one or two queries about donations in the form of non-fungible tokens (NFTs).
Just like cryptocurrencies, NFTs exist on decentralised digital ledgers called blockchains.
They are used to represent underlying assets that can be digital or physical, such as artwork, videos and music.
Care Singapore executive director John Tan said the charity received two physical works of art backed by NFTs in 2022 that it intends to auction.
He added: “We expect an evolving trend of donors embracing digital currency and that in time to come, it will become mainstream, just like how payWave and PayLah have become increasingly common, especially for smaller transactions.
“There is also an untapped wealth of potential donations from those who made a fortune from cryptocurrencies and are looking for a way to do good.”
This is not the first time charities in Singapore have welcomed cryptocurrency as donations.
In August, the Singapore Red Cross announced a partnership with crypto payments company Triple-A that enables it to accept cryptocurrency.
The Food Bank Singapore also accepts donations in cryptocurrency.
Globally, crypto donations are expected to reach US$10 billion (S$13.3 billion) by 2034, according to data from crypto donation platform The Giving Block.
Mr Eric Jardine, cybercrime research lead at blockchain analytics company Chainalysis, noted the significant role of crypto donations in aiding earthquake victims in Turkey and Syria, as well as supporting fund-raising efforts in the Russia-Ukraine War.
He said: “Given the ease with which cross-border payments can be made using crypto, the trend of charitable giving as a part of crypto is expected to continue increasing in the future.”
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