The crypto analytics and compliance startup Chainalysis has secured $170 million from a state fund in Singapore and doubled its valuation from last June to $8.6 billion with a financing round that was led by Monetary Authority of Singapore (MAS).
Before this new round, the company had received $366 million from investors such as Benchmark, Accel, Paradigm, and Coatue. The company opened offices in Singapore and Tokyo in 2020 to double its APAC presence. They now serve government agencies, exchanges, financial institutions, and cybersecurity companies in over 70 countries.
Largest crypto market researcher expands
Chainalysis is known for helping law enforcement agencies track down illegal crypto activity. Recently, Chainalysis was credited with helping journalist Laura Shin track down the suspect behind the 2016 DAO hack, which resulted in a loss of $11 billion in Ether. The market researcher is also quick to respond to other prominent exploits in the crypto world, such as during the 3.6 billion dollar Bitfinex hack.
As such scams have become more common in the cryptocurrency industry, Chainalysis still has a lot of growth potential, especially given its long track record of success. The Series F round was first reported by The Information, citing an anonymous source on the internet. It was led by GIC, a sovereign wealth fund from Singapore.
Singapore's crypto hub falters
This is one of the first crypto-related investments by a state fund. That it is GIC, a fund from Singapore, is obvious. The Southeast Asian city-state has established itself in recent years as a central crypto hub in Asia, analogous to the European Crypto Valley. Attractive conditions for startups and low tax rates lured some crypto companies to Singapore. However, this trend is beginning to change.
The local regulator is increasingly closing itself off to blockchain companies and a large majority of the 170 applicants for a operating license in Singapore have been rejected. In addition, public advertising for crypto services has recently been banned and both hedge fund Three Arrows Capital and Binance, the world's largest crypto exchange, have been put on a warning list for investors by the Monetary Authority of Singapore (MAS). In response, more and more companies are moving to Dubai as the United Arab Emirates (UAE) is opening up to the industry.
