The crypto and blockchain industries have made significant progress in becoming functional sectors worldwide. However, Southeast Asia stands out as a region that is particularly receptive to these financial and technological advancements.
Chainalysis’s 2023 global crypto adoption index highlights the strong representation of Southeast Asian countries like Vietnam, the Philippines, and Thailand, indicating that they are on the cusp of a crypto revolution.
Cointelegraph spoke with Nathan Kim, marketing director at Unopnd, who is leading the Southeast Asia Blockchain Week, to gain a deeper understanding of the region’s growing prominence and its positive attitude towards the industry.
Thailand, situated at the heart of the region, is at the forefront of blockchain adoption across various industries and is actively supporting blockchain-based projects. Kim emphasized that Thailand’s commitment to fostering innovation has made it a key player in the regional blockchain scene.
Singapore is also recognized as 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 apply for licenses to operate within the country.
In June, regulators from Japan and Singapore collaborated on the regulation and pilot testing of cryptocurrency projects as part of Singapore’s Project Guardian initiative.
Despite these advancements, Kim pointed out that regulatory approaches to the industry in the region still vary among countries. 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 significance of legacy Web2 giants’ presence in the region, particularly at the intersection of Web3 and gaming. Companies like Sony, Square Enix, and Riot Asia are actively involved in the region and are promoting local Web3 gaming initiatives. Their commitment to integrating blockchain technology into the gaming experience, as evidenced by Sony’s patent filing for NFT transfers between games and consoles, demonstrates the potential for Web3 adoption.
Crypto plays a vital role in bridging the gaps in financial services and empowering small and medium-sized enterprises in Southeast Asia. While more than 70% of adults in the region lack sufficient access to financial services, crypto enables economic empowerment and fosters comprehensive financial accessibility.
However, alongside the positive developments, there has been an increase in illicit activities involving cryptocurrencies in the region. A United Nations report highlights the exploitation of crypto and other modern technologies by the “gray” casino industry in Southeast Asia.
The emergence of artificial intelligence (AI) has also become a significant theme in Southeast Asia, with countries like Singapore actively developing AI technology tailored to local communities. The synergy between AI, crypto, and blockchain sectors in the region holds immense potential for transforming Southeast Asia into a global tech hub. According to data from the US-ASEAN Business Council, AI has the potential to contribute nearly $1 trillion to Southeast Asia’s gross domestic product by 2030, with Indonesia, one of the region’s largest economies, benefiting significantly.
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