Since then, ICOs in Singapore have been surging. The Thai government has likewise helped make it easy to adopt blockchain technology and its applications. Thailand introduced cryptocurrency laws in and its central bank has been supportive of efforts to integrate blockchain-powered solutions in cross-border payments, security settlement, and supply chain management.
In March , Vietnam's government released Resolution No. The resolution includes the creation of a legal framework for the application of modern technologies including blockchain, the Internet of Things, artificial intelligence, big data, and Open API. Meanwhile, the Philippines claims the distinction of being the pioneer in using blockchain technology for the distribution of government bonds. A collaboration by the Philippine Bureau of Treasury, UnionBank, and the Philippine Digital Asset Exchange has resulted in the launch of an app powered by Distributed Ledger Technology blockchain to make it easier and more efficient for people to invest in retail treasury bonds.
There are hundreds of blockchain startups in the Southeast Asian region. From the fintech system Vauld of Singapore to the agriculture data exchange platform Hara of Indonesia, many ASEAN businesses are already harnessing blockchain to explore novel business models or new facets of conventional businesses.
These include Biconomy, a tech firm that seeks to establish a transaction infrastructure for Web 3 applications; MathWallet, a multi-platform digital wallet that supports over 50 blockchains; and Conflux Network, an open network for digital assets and decentralised applications. Created by Electrify SG, the pioneering retail electricity marketplace in Southeast Asia, Electrify makes it possible for consumers to find the best power rates that match their needs and preferences.
Electrify has already facilitated the buying and selling of more than 60 gigawatt-hours of electricity. Through blockchain, Electrify is looking to decentralise its marketplace and enable faster transactions with lower fees. Another standout is Bluzelle, a platform for sharing computing power. Established in , this innovative business operates like a decentralised cloud service through which users store data in multiple computers, making their data safe from cyber theft and unlikely to be affected by server downtimes.
XPos makes it possible to accept payments through multiple modes including cryptocurrency. Considering the recent developments, the emergence of more promising and trailblazing blockchain startups from Southeast Asia is going to be unsurprising. With the rise of fintech and growing investor interest in the region, it is no longer that difficult to attract funds to bring innovative blockchain application ideas to the market.
Thanks to welcoming governments and brilliant technical and entrepreneurial minds, the ASEAN bloc is making strides at the forefront of blockchain technology. Even better, platforms and APIs for blockchain product development have been made more accessible nowadays. The news of Crypto. This collaboration entails Alchemy's role in the building of a developer platform and API that simplifies the process of creating applications on the Crypto.
It makes it easier to integrate apps for wallets and exchanges. With the company's record in delivering reliable, scalable, and accurate APIs, developers on the Crypto. Another example of an excellent platform that makes development easier is Game Protocol.
It helps achieve faster, easier, and more efficient development through its digital currency and the creation of collaborative communities. It democratizes the development process and provides quick access to crowdfunding for developments. Likewise, it provides a decentralized marketplace where developers can sell their products. ASEAN as a global leader in blockchain application is far from far-fetched. There is abundant potential in the region especially in the field of financial technology and in novel or groundbreaking business ideas.
Reputational risks could stem even from activity that is legal, for example if customers perceive banks have tacitly endorsed crypto trades that subsequently turn sour. Operational risks are also significant for entities in the crypto sector.
We view cybersecurity threats, such as scams and hacks involving exchanges, as another prominent risk. There can also be issues around ESG exposures, given the energy intensive nature of some cryptocurrency mining and verification operations. The volatility of cryptocurrencies, highlighted by the steep drop in the market value of many cryptocurrencies in recent weeks, could add to earnings instability if bank revenues from the sector grow in the longer run, though it is also possible volatility may ease over time.
We believe recent crypto activity is unlikely to have major near-term rating repercussions for Fitch-rated banks in south-east Asia, but continue to assess developments as they arise. Our understanding of controls and compliance procedures to mitigate risk, such as know-your-customer KYC processes, will be an important ratings consideration for banks developing digital asset capabilities. In the longer run, the punitive regulatory capital requirements recommended for crypto assets held on bank balance sheets by the Basel Committee on Banking Supervision should limit direct exposures.
Thailand follows ASEAN peers applying cryptocurrency controls. Big corporates, trading platforms restricted as BoT limits crypto payments. However, EIU expects curbs on cryptocurrency to expand in most Asian economies over the next five years, as awareness of the associated. The use of crypto assets as a currency is forbidden for Muslims, according to Indonesia's council of religious ladi.crptocurrencyupdates.com National Ulema Council, or MUI.