Regulatory Vanguard: Asia’s Rising Powers the 21st Century’s Blockchain Leaders?
August 20, 2018 by Akshay Makadiya
Countries in Asia are increasingly pivoting toward becoming go-to global destinations for fintech and cryptocurrency disruptors. While other countries are turning the regulatory heat on the cryptoverse, some of the more forward-minded powers on the most populous continent on Earth are introducing new legislation to draw in blockchain and crypto companies. It’s a bid to create the next century’s leading innovations hubs.
Also read: Rising Crypto-Politico: Rep. Tulsi Gabbard Bought Crypto in 2017
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Brave New World: Asia Rising
The crypto-regulatory situation in America is currently scrambled and unclear. Saudi Arabia just warned against cryptocurrency use in the nation. The European Parliament’s TAX3 commission has recommended de-anonymization of crypto users in Europe. In contrast, a handful of Asian nations are trying to make their domestic rules both clear and enticing for blockchain innovators.
Recently, the Philippines government announced it would spend spend $100 million USD to build a cryptocurrency and fintech hub in the tropical northern region of the country. The innovation sandbox has been dubbed the Cagayan Special Economic Zone (CEZA). The venture is envisaged as eventually housing many blockchain firms and thousands of jobs.
Reportedly, NEM Foundation — creator of the NEM blockchain platform and XEM tokens — inked a deal with the fledgling CEZA to build the underlying infrastructure of the coming blockchain and fintech hub. According to the Filipino government, crypto exchanges looking to open shop in the special zone will be required to invest $1 million over the span of two years. CEZA has limited registration to 25 crypto firms, of which apparently 17 spots are already full.
At the time, Raul Lambino, the CEZA chief executive, said “The overwhelming interest from offshore companies in financial technology solutions and cryptocurrency trading that want to locate at the Cagayan Special Economic Zone has surpassed all our expectations,”
South Korea Province Gunning to Be ‘Malta of Asia’
Similarly, South Korea’s special autonomous Jeju province is positioning itself to get a piece of the crypto cake. Not long ago, Jeju Governor Won Hee-ryong put in motion plans to turn the island province into Asia’s leading blockchain hub, or as he referred to it, the “Malta of Asia.”
Governor Won said the crux of that pivot would be in offering crypto-friendly regulations. Apparently, if the proposal materializes, Jeju would become a streamlined venue to host Initial Coin Offerings (ICOs).
Speaking at the Huobi Carnival Blockchain Conference, Won asserted:
“South Korea is an internet powerhouse but it has never been a leader in software. Blockchain technology offers the first and the last opportunity for Korea to become a power in the internet platform sector. We need to seize the opportunity when it comes our way. If there are risks or side effects, they need to be managed, not to be avoided.”
Singapore Already a Favorable Crypto Hub
While Philipines and Jeju have hubs-in-the-making, the sovereign city-state Singapore has already proven to be a thriving blockchain test bed.
Reportedly, Singapore has become the third-biggest venue for ICO activity owing to its regulatory clarity. It stands alongside its Asian peers in proactively trying to be ahead of the curve in the space.
However, competition is on the rise globally, with many nations jumping intending to be the next blockchain centers. Smaller jurisdictions, like Malta and Gibraltar, have been making concerted regulatory changes to facilitate the adoption of blockchain technology and the welcoming crypto firms from around the world.
Bigger nations like the United States may want to take note, lest they be left behind.
Will Asia be the leading blockchain hub in 10 years? 20 years? Share your views in the comments section.
Images via Pixabay
