The Crypto Landscape in Asia

Asia has emerged as a pivotal hub for cryptocurrency transactions, capturing a staggering 28% of global crypto transaction volume in early 2021—equating to about $1.16 trillion. Central and Southern Asia alone are making headlines, boasting a jaw-dropping 706% growth in year-over-year crypto transactions. Who knew numbers could do the cha-cha?

China’s New Path: The Great Crypto Exodus

Despite the unexpected crackdown from China, the crypto community didn’t just roll over and play dead. Miners packed their bags and migrated to friendlier shores like Kazakhstan and the U.S., while exchanges and traders have flocked to places like Singapore and Hong Kong, turning those locales into coins’ glamour zones.

Singapore: The Beacon of Crypto Regulation

With its progressive regulatory framework, Singapore isn’t just twiddling its thumbs; it’s leading the charge in making crypto legit. The Monetary Authority of Singapore has set the bar high, and while compliance can sometimes feel like climbing Mount Everest, many businesses are still eager to play in this sandbox thanks to a pro-business environment and low corporate tax rate.

Thailand: The Rising Star of Southeast Asia

In Thailand, the crypto scene is sizzling—Kasikornbank is strutting its DeFi stuff, and Siam Commercial Bank isn’t far behind, having snagged a majority stake in the digital asset exchange Bitkub. And the Tourism Authority of Thailand is also jumping on the bandwagon, exploring utility tokens. Who said tourism couldn’t be techy?

The Untapped Potential of Indonesia

Indonesia is the wild card with its unbanked population ripe for crypto exploitation—over 66% of people lack bank accounts! The crypto volume shot up ten times in just a year. However, the authorities can’t quite make up their minds about how to handle this digital dynamo. They’re swinging between banning crypto payments while simultaneously opening the gates for trading, making for some thrilling rollercoaster economics.

Funds Flowing into the Future

With retail and institutional investors diving deep into the crypto pool, Asia is seeing old money transform into new digital gold. Major capital inflows are amplifying innovation, especially in providing services for the regions’ underbanked populations. As investments pour in, the future looks brighter than a blockchain conference after-party.

This article doesn’t offer investment advice. Always do your own research, folks!

Written by Cynthia Wu, founding partner and head of business development and sales at Matrixport.