The crypto and blockchain industries have made significant progress in becoming established sectors worldwide. However, Southeast Asia stands out as a region that is particularly welcoming to these financial and technological advancements.
Chainalysis’s global crypto adoption index for 2023 showcased the strong presence of Southeast Asian countries, including Vietnam, the Philippines, and Thailand, which are on the verge of a crypto revolution. In fact, five countries in South and Southeast Asia ranked among the top 10 globally for crypto adoption.
To gain a deeper understanding of the region’s rise in prominence and its friendliness towards the industry, Cointelegraph spoke with Nathan Kim, the marketing director at Unopnd, who is leading the Southeast Asia Blockchain Week.
Among the countries in Southeast Asia, Thailand is at the forefront of blockchain adoption in various industries and has been supportive of blockchain-based projects. Kim emphasized Thailand’s commitment to fostering innovation, making it a key player in the regional blockchain scene.
Singapore, another prominent country in the region, is considered a global leader in the Web3 space. In 2023, its central bank allocated $112 million to support local fintech solutions based on emerging Web3 technologies. Singapore has also seen major crypto platforms, such as Blockchain.com, Circle, Crypto.com, and Coinbase, applying for licenses to operate in the country.
Moreover, Japanese and Singaporean regulators collaborated on the regulation and pilot testing of cryptocurrency projects as part of Singapore’s Project Guardian initiative.
However, despite the progress made, Kim noted that countries in the region still have fragmented regulatory approaches to the industry. He believes that a collaborative spirit in Southeast Asia is crucial for fully realizing the potential and benefits of ongoing Web3 adoption.
Kim also highlighted the importance of legacy Web2 giants present in the region, particularly in the intersection of Web3 and gaming. Companies like Sony, Square Enix, and Riot Asia actively participate in the region and support local Web3 gaming initiatives. Their involvement, such as Sony’s patent filing for NFT transfers between games and consoles, demonstrates their commitment to integrating blockchain technology into the gaming experience.
In terms of economic empowerment, more than 70% of adults in Southeast Asia lack sufficient access to financial services, and many small and medium-sized enterprises face funding gaps. Crypto has the potential to bridge these gaps and empower these groups, ushering in a new era of comprehensive financial accessibility. Southeast Asian countries have recognized this potential and adopted policies that reflect their support for crypto.
However, alongside the positive developments, there has also been an increase in illicit activity involving cryptocurrencies, particularly in the “gray” casino industry in Southeast Asia, according to a report by the United Nations.
The emergence of artificial intelligence (AI) has also been a significant theme in Southeast Asia, with countries like Singapore actively developing AI technology for their local communities. Kim believes that the synergy between AI, crypto, and blockchain in Southeast Asia holds immense potential for advancing the region into a global tech hub. Data from the US-ASEAN Business Council indicates that AI could contribute nearly $1 trillion to Southeast Asia’s gross domestic product by 2030, especially for Indonesia, one of the region’s largest economies.