Southeast Asia lays the foundation to become a crypto, blockchain, AI hub
The crypto and blockchain industries have made significant progress as functional sectors worldwide. However, in some parts of the world, such as Southeast Asia, there is a strong tendency to embrace these financial and technological developments.
The Southeast Asian region is heavily represented in the Chinalysis 2023 Global Crypto Adoption Index, with countries such as Vietnam, the Philippines and Thailand on the brink of a crypto revolution.
With five countries in South and Southeast Asia being among the global top 10 for crypto adoption, Cointelegraph spoke with Nathan Kim, marketing director at Unopnd, who is leading the South-East Asia Blockchain Week, to understand more about the region's increasing popularity and friendliness. Industry.
Leading countries
Located in the heart of the region, Thailand is particularly at the forefront of blockchain adoption and support of blockchain-based projects across various industries.
Kim said Thailand's “commitment to fostering innovation” has made it a “key player” in the region's blockchain scene.
Singapore is another country that is seen as a global leader in the overall Web3 space. In the year By 2023, the central bank has committed $112 million to support local fintech solutions from Web3 Technologies.
Over the past year, Singapore has seen several of the world's leading crypto platforms such as Blockchain.com, Circle, Crypto.com and Coinbase apply for licenses to operate in the country.
In June, both the regulators of Japan and Singapore joined forces on the regulation and pilot testing of cryptocurrency projects under the initiative of the Guardian Project of the latter.
However, Kim said countries in the region are still divided over how they regulate the industry.
“This regulatory gap highlights the challenges and opportunities in the region's journey to adopt and regulate Web3 technologies. As leading countries in Southeast Asia progress in Web3 adoption, we hope that the region can create greater cooperation for the Southeast Asian region as a whole.
Kim said the spirit of cooperation in Southeast Asia could be an important piece of the puzzle for the region “to fully realize the potential and benefits of continued Web3 adoption.”
Web2 help Web3 adoption
Kim touched on the importance of Web3 adoption, especially the presence of longtime Web2 giants in the region at the intersection of Web3 and gaming.
“The region has seen significant participation from major Web2 companies in the growing Web3 landscape, especially in the gaming space. For many Web2 enterprises, gaming is the perfect destination.”
He cited large Web2 companies such as Sony, Square Enix, and Rio Isa as examples.
“Sony's patent filing of NFT transfers between games and consoles demonstrates its commitment to integrating blockchain technology into the gaming experience. Square Enix is another notable player, pushing into the Web3 with Symbigenesis, which has experience in gathering games.
“These strategic partnerships and initiatives will significantly contribute to the creation of a crypto-friendly ecosystem in South America and Southeast Asia.”
Economic development and active regulations
Although many of these countries are open to new frontiers in the fintech space, more than 70% of adults in Southeast Asia still lack access to adequate financial services, leaving millions of small and medium-sized enterprises in the region facing significant financial gaps.
Kim explained that crypto will help bridge the gap in the region and empower these groups economically, bringing “a new era of universal financial access.”
Many Southeast Asian countries have recognized the potential and benefits of crypto for the local population and have adopted policies that reflect this.
“Rather than taking a restrictive approach, these frameworks often focus on providing transparency, fostering innovation and ensuring consumer protection.”
However, as innovative as this technology has been for the region, illegal activity related to cryptocurrencies has also increased.
According to a report by the United Nations, the “gray” casino industry in Southeast Asia is using crypto and other modern technologies.
Revenue AI dominance
The emergence of artificial intelligence (AI) has also been a major theme for countries such as Singapore to develop technology that suits local communities.
Kim said collaboration between the AI, crypto and blockchain sectors in Southeast Asia has “huge potential” to propel the region into a global technology hub.
“The adoption and integration of AI technologies has the potential to drive innovation, improve efficiency across sectors, and enable Southeast Asia to play a key role in the global technology-driven economy.”
According to data from the US-ASEAN Business Council, AI has the potential to contribute nearly $1 trillion to Southeast Asia's GDP by 2030, especially Indonesia, one of the region's largest economies.
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