<article>Singapore-based cryptocurrency exchange Coinhako&#8217;s revenue surged over ten times last year as it rode a marketwide boom, show its recent regulatory filings.</article>

Singapore-based cryptocurrency exchange Coinhako&#8217;s revenue surged over ten times last year as it rode a marketwide boom, show its recent regulatory filings.
Founded in 2014, Coinhako is one of the oldest crypto platforms in the Asia Pacific. Users can buy or sell cryptocurrencies such as Bitcoin and Ethereum on its platform via bank transfers and card payments. It also offers a wallet for the storage and trading of a variety of cryptocurrencies.
The company posted revenue of S$49.77 million ($37.2 million) in the financial year ended December 31, 2021, according to its latest filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA). It had earned S$4.7 million in the previous fiscal year.
The revenue growth helped it post a net profit of S$23.76 million ($17.77 million) last year after reporting a net loss of S$165k ($120k) in 2020.
However, companies such as Coinhako could see tougher times ahead as the crypto world has been rocked by the insolvency of FTX, once the second-largest crypto exchange in the world after Binance. Closer home, the collapse of hedge fund Three Arrows Capital and crypto platform Hodlnaut this year have shaken confidence in the industry.
Coinhako&#8217;s Profit &amp; Loss Statement for Financial Year ended December 31, 2021 (All figures in Singapore Dollars)
<figure id="attachment_321634" aria-describedby="caption-attachment-321634" style="width: 1774px" class="wp-caption alignnone"><img decoding="async" loading="lazy" class="wp-image-321634 size-full" src="https://media.dealstreetasia.com/uploads/2022/12/coinhako-2021.png?resize=640,615" alt="" srcset="https://media.dealstreetasia.com/uploads/2022/12/coinhako-2021.png?w=1774 1774w, https://media.dealstreetasia.com/uploads/2022/12/coinhako-2021.png?resize=300,288 300w, https://media.dealstreetasia.com/uploads/2022/12/coinhako-2021.png?resize=1024,984 1024w, https://media.dealstreetasia.com/uploads/2022/12/coinhako-2021.png?resize=768,738 768w, https://media.dealstreetasia.com/uploads/2022/12/coinhako-2021.png?resize=1536,1476 1536w" sizes="(max-width: 1774px) 100vw, 1774px" data-recalc-dims="1" /><figcaption id="caption-attachment-321634" class="wp-caption-text">Source: ACRA</figcaption></figure>
Coinhako&#8217;s 2021 revenue growth was propelled by an uptick in fiat payments for crypto transactions on the platform. The segment contributed nearly 85% of its total revenue, while transaction fees from digital assets contributed S$7.2 million.
The company has previously claimed that it recorded a trading volume of S$7 billion in 2021, marking a growth of about 1,200% over the previous year.
Coinhako&#8217;s cost of services ballooned 17.5% in 2021 to S$16.8 million, driven by a surge in affiliate and platform services fees and spending on its loyalty programme.
Its ACRA filing showed that its trade receivables – the amount due from liquidity providers – had come down to S$4.58 million last year from S$11.08 million in 2020.
Coinhako did not respond to DealStreetAsia&#8217;s queries on its 2021 financial performance and future outlook in the wake of the recent crypto meltdown. In a post in November on its website, it sought to reassure users that its business was unaffected by the liquidity issues at FTX and crypto broker Genesis as it had not &#8220;extended any loans to these institutions&#8221;.
&#8220;All trades with Coinhako are required to be pre-funded and/or fully collateralized which ensures that credit default risk (if any) is kept to an absolute minimum,&#8221; the post added.
Coinhako had cash and cash equivalents of S$26.1 million at the end of FY21, up from S$11.3 million in FY20. In May, the company <a href="https://www.dealstreetasia.com/stories/coinhako-funding-292639">secured $10 million</a> in fresh funding from investment firm Peak Capital and crypto fund Mirana Ventures.
After seeing record growth in 2021, the crypto market hit a rough patch this year. In the first half of 2022, the prices of every cryptocurrency dropped. The Bitcoin market cap, which reached an all-time high of over $1,000 billion in April 2021, has witnessed significant erosion in value and stood at $343.13 billion at the time of publication.
Singapore, which has long positioned itself as Asia&#8217;s crypto hub, is seeking to clamp down on retail trading of cryptocurrencies. A recent proposal by the Monetary Authority of Singapore seeks to prohibit borrowing money and using credit cards to buy cryptocurrencies and non-fungible tokens (NFTs) to protect retail consumers.

The revenue growth helped it post a net profit of S$23.76 million ($17.77 million) last year after reporting a net loss in 2020. 

Crypto boom helped SG's Coinhako post over 10x revenue growth in 2021

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Related Stories

SG cryptocurrency platform Coinhako raises $10m in new funding

Crypto boom helped SG's Coinhako post over 10x revenue growth in 2021

Continue reading this premium story with a subscription to DealStreetAsia.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Related Stories

SG cryptocurrency platform Coinhako raises $10m in new funding