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 welcoming and open to these financial and technological advancements.
According to Chainalysis’s 2023 global crypto adoption index, Southeast Asia is highly represented, with countries like Vietnam, the Philippines, and Thailand on the cusp of a crypto revolution. In fact, five countries in South and Southeast Asia are among the top 10 globally for crypto adoption.
To gain further insight into the region’s rise in prominence and its friendly attitude towards the industry, Cointelegraph spoke with Nathan Kim, the marketing director at Unopnd, who is leading the Southeast Asia Blockchain Week.
Thailand, located in the heart of the region, is at the forefront of blockchain adoption across various industries and is actively supporting blockchain-based projects. Kim mentioned that Thailand’s commitment to fostering innovation has made it a key player in the regional blockchain scene.
Singapore is another country recognized as a global leader in the Web3 space. In 2023, its central bank pledged $112 million to support local fintech solutions based on emerging Web3 technologies. Over the past year, Singapore has seen major crypto platforms like Blockchain.com, Circle, Crypto.com, and Coinbase apply for licenses to operate in the country.
In June, Japanese and Singaporean regulators collaborated on the regulation and pilot testing of cryptocurrency projects as part of Singapore’s Project Guardian initiative.
Despite these positive developments, Kim pointed out that countries in the region still have fragmented regulatory approaches to the industry. He emphasized that a collaborative spirit in Southeast Asia is crucial for the region to fully realize the potential and benefits of ongoing Web3 adoption.
Kim also highlighted the importance of legacy Web2 giants in the region, such as Sony, Square Enix, and Riot Asia, in aiding the adoption of Web3, particularly in the gaming sector. These companies are actively involved in the region and championing local Web3 gaming initiatives.
While many Southeast Asian countries are open to new frontiers in the fintech space, a significant percentage of adults in the region still lack access to sufficient financial services, and many small and medium-sized enterprises face funding gaps. Crypto has the potential to bridge these gaps and empower these groups economically, ushering in a new era of comprehensive financial accessibility.
However, along with the positive impact, there has also been an increase in illicit activity 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.
Artificial intelligence (AI) is also a significant theme in Southeast Asia, with countries like Singapore actively developing AI technology tailored to local communities. Kim believes that the synergy between AI, crypto, and blockchain sectors in Southeast Asia has immense potential to transform the region 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, particularly in Indonesia, one of the region’s largest economies.