- China’s political and economic changes dominated last year’s headlines in Asia.
- The Monetary Authority of Singapore has set a high bar for crypto regulations.
Despite China’s unexpected crackdown, Asia’s crypto industry thrived nevertheless, from Singapore to Thailand and Indonesia. Cryptocurrency’s ability to operate outside national borders is one of its most essential characteristics. On the other hand, Asia is a significant engine of adoption and innovation. Coins like Bitcoin (BTC) have had a significant impact on the region’s growth and future.
In the first half of 2021, Asia accounted for 28% of worldwide transaction volume, of $1.16 trillion in cryptocurrencies, according to Chainalysis research. Central and southern Asia alone had a 706 percent year-over-year increase in crypto transactions, making it the third fastest-growing market globally.
Quick Adaptation After China Crackdown
China’s political and economic changes dominated last year’s headlines in Asia. Other regions were buzzing due to Singapore’s perceived legitimacy and legislative clarity surrounding digital assets, which had a positive impact. A surge in project funding and investment in Southeast Asia’s decentralized finance (DeFi) innovation has boosted the sector’s growth. In 2022, the institutional adoption of DeFi’s yield possibilities is well-positioned to continue its growth trajectory.
Since money is tightly controlled in China, the country’s position on crypto is not surprising. Many in the sector were caught off guard by the recent enforcement’s rapidity, but the players themselves have done an admirable job of adapting quickly. In Kazakhstan and the United States, miners were relocated, while in Singapore and Hong Kong, exchanges and merchants opened up operations. With Indonesia and Thailand not far behind.
The city-state of Singapore, which is already a major center for financial services and wealth management, is the forerunner in this race since cryptocurrencies have been officially regulated there since the beginning of 2019. With that stated, the Monetary Authority of Singapore has set a high bar, with several players allegedly unable to fulfill the regulations.