US Regulatory Actions Push Crypto Exodus

Actions by US regulators throughout 2023 have prompted several companies to withdraw and look for safer areas. Asia welcomes this opportunity to become a friendlier and more profitable Web3 and crypto business environment for industry players and investors.

Lennix Lai, OKX's Chief Commercial Officer, said in a panel session at Coinfest Asia 2023 that discussion of crypto assets in the United States has decreased.

In contrast, there has been a surge in developments that are more accepting of crypto. According to him, this trend is supported by Asia's significant share of the global cryptocurrency market and user base.

The Case for Asia

Apart from market trends and support from a large population, Asia has at least three reasons why it deserves to be the new center for the world's crypto and Web3 industries. According to an Emergen Research report, the global Web3 market is expected to reach US$81.5 billion by 2030, with a CAGR growth of 43.7%.

The Asia-Pacific region is projected to record the fastest income growth rate due to consistently high demand from banking, financial services, insurance (BSFI) sectors, e-commerce and retail, health, and pharmacy.

In the Southeast Asia region alone, the Web3 market is projected to be worth US$6.4 billion by 2030, growing at an impressive rate of 50.2%. According to Meta and Bain & Company's annual report SYNC Southeast Asia, the sub-region is also leading in fintech and web adoption.

Leading Cities in Crypto

Recap's report highlights Dubai, Singapore, and Hong Kong as top contenders in fostering a "crypto-clear" environment. They rank among the top seven cities for their openness and regulatory clarity toward the crypto community and activity.

Dubai shines with 772 crypto-based companies, offering vast career opportunities and boasting a high quality of life. Singapore's ecosystem thrives with over 247 fintech companies, emphasizing blockchain technology, while Hong Kong's Cyberport, backed by government support, hosts around 150 Web3 companies.

Despite not making the top 20, Indonesia emerges as a noteworthy "crypto-clear" country. According to Kominfo, 1,629 companies or startups are registered in the Online Single Submission (OSS) system in the category "Blockchain Technology Development Activities."

Meanwhile, many prestigious Web3 and crypto events are held in Dubai, Singapore, South Korea, Japan, and Indonesia. Especially for Indonesia, the closest Web3 and crypto event is Coinfest Asia, which will occur on August 22-23, 2024.

Coinfest Asia and Growth Opportunities

"I think this conference (Coinfest Asia) brings together many of the leading players in Southeast Asia to be here, both in terms of the conference itself and as sponsors of the event. We are very excited and have met many prospects and customers here," said Amy Zhang, VP of Sales of Fireblocks, while attending Coinfest Asia 2023.

In its third edition, Coinfest Asia will have more than five thousand participants from various countries in Asia and other regions. This event offers sponsorship opportunities for companies that want to expand their business in this region.

High Adoption Rates in Asia

Asian countries such as India, Vietnam, the Philippines, and Indonesia are among the top 10 in crypto-asset adoption. According to the Chainalysis report, the growth of crypto adoption in Asia is reflected in an increase in transaction volume, purchasing power, and population size.

Adoption rates by institutions in the Asian region have also increased, with around 68.8% of total transaction volume originating from transfers of US$1 million or more, an increase of 57.6% from the previous period.

According to Statista, the high adoption of crypto in Asia is due to its accessibility, speed, and cost-effectiveness. It is also used for about one percent of e-commerce transactions in the Asia-Pacific region.

The high adoption of crypto in Asia by the general public and institutions positions the region as a potential major center for crypto and Web3 technology development and innovation.

With the growing acceptance of blockchain-based technologies, Asia has a huge opportunity to become a growth hub for crypto businesses, investments, and the decentralized ecosystem.

Asia is not only a magnet for the Web3 and crypto industry due to economic and technological factors but also its supportive regulatory environment, continuous innovation, and broad adoption across various sectors. This heralds a new era in which Asia not only follows but also has the potential to lead in the global digital revolution.

Meanwhile, significant efforts have been made in Asia to drive mass adoption and continued innovation in the Web3 space.

One example is through leading crypto and Web3 events such as Coinfest Asia. The event will return in August 2024, providing an important platform to engage in the Asian Web3 market.