Southeast Asia Leads in Crypto Adoption
The crypto and blockchain industries have made significant strides in becoming established sectors worldwide. However, certain regions, such as Southeast Asia, have shown a greater inclination to embrace these financial and technological advancements.
The Southeast Asia region was prominently featured in Chainalysis's 2023 global crypto adoption index, with countries like Vietnam, the Philippines, and Thailand poised for a crypto revolution.
With five countries in South and Southeast Asia ranking among the top 10 globally for crypto adoption, Cointelegraph spoke with Nathan Kim, marketing director at Unopnd and organizer of Southeast Asia Blockchain Week, to delve deeper into the region's growing prominence and receptiveness to the industry.
Thailand, situated at the heart of the region, has emerged as a leader in blockchain adoption across various sectors, actively supporting blockchain-based projects.
Kim noted that Thailand's dedication to fostering innovation has positioned it as a key player in the regional blockchain landscape.
Singapore, another frontrunner, is recognized globally for its leadership in the Web3 space. In 2023, its central bank committed $112 million to bolster local fintech solutions driven by emerging Web3 technologies.
Moreover, several major crypto platforms, including Blockchain.com, Circle, Crypto.com, and Coinbase, applied for licenses to operate in Singapore last year.
Kim highlighted the collaboration between Japanese and Singaporean regulators in regulating and piloting cryptocurrency projects, aligning with Singapore's Project Guardian initiative.
However, Kim noted that regulatory approaches across the region remain fragmented, presenting both challenges and opportunities for Web3 adoption.
He emphasized the importance of a collaborative spirit to enhance synergy and facilitate Web3 adoption across Southeast Asia.
Additionally, Kim underscored the significance of legacy Web2 giants' presence in the region, particularly in driving Web3 adoption, especially in the gaming sector.
Companies like Sony, Square Enix, and Riot Asia are actively involved in promoting local Web3 gaming initiatives, integrating blockchain technology into gaming experiences.
Despite the region's openness to fintech innovations, a significant portion of adults in Southeast Asia still lacks access to financial services, with many small and medium-sized enterprises facing funding gaps.
Kim emphasized that crypto can help bridge these gaps and empower economic participation, ushering in a new era of comprehensive financial accessibility.
While Southeast Asia embraces the potential of crypto, there has been a rise in illicit activities involving cryptocurrencies.
The "gray" casino industry in Southeast Asia has exploited crypto and modern technologies for such activities, as reported by the United Nations.
Furthermore, Southeast Asia has seen a surge in artificial intelligence (AI) adoption, with countries like Singapore actively developing AI technologies tailored to local needs.
Kim highlighted the synergy between AI, crypto, and blockchain sectors, noting its potential to drive innovation, enhance efficiency across various industries, and position Southeast Asia as a prominent player in the global tech economy.
According to data from the US-ASEAN Business Council, AI adoption could contribute nearly $1 trillion to Southeast Asia's GDP by 2030, particularly benefiting economies like Indonesia.
Sources:
https://cointelegraph.com/news/southeast-asia-groundwork-crypto-blockchain-ai-hub
https://www.chainalysis.com/blog/2023-global-crypto-adoption-index/
https://www.newamerica.org/planetary-politics/blog/what-will-ai-mean-for-asean
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