Actions by US regulators throughout 2023 that tend to be unfriendly to the crypto industry have prompted several companies to start withdrawing and looking 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 (Chief Commercial Officer, OKX) said in a panel session at Coinfest Asia 2023 that discussion of crypto assets in the United States has decreased, and on the contrary, in Asia, there has been a surge in developments that are more accepting of crypto. According to him, this trend is supported by the fact that Asia has a significant share of the global cryptocurrency market and user base.
Apart from market trends and supported by 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.
Web3 Economic Value Growth Potential in Asia
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 sectors such as banking, financial services, and insurance (BSFI); 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 terms of fintech and web adoption.
Web3’s large market share in Asia reflects the strong drive for innovation and adoption of new technologies in the region. This is not just about continued economic growth, but also about a profound transformation in the way societies, companies, and governments interact with digital technologies, opening up huge opportunities for investment and innovation.
Crypto Clear Environment
Recap’s report highlights Dubai, Singapore, and Hong Kong as top contenders in fostering a “crypto-clear” environment, ranking them among the top seven cities for their openness and regulatory clarity towards 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, there are 1,629 companies or startups that have been registered in the Online Single Submission (OSS) system in the category “Blockchain Technology Development Activities.”
Meanwhile, in the Asian region, 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 take place on August 22-23, 2024.
“I think this conference (Coinfest Asia) really 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 met many prospects and many 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 opens up sponsorship opportunities for companies that want to enlarge or expand their business in this region.
High Crypto Adoption
Asian countries such as India, Vietnam, the Philippines, and Indonesia are the countries ranked in the top 10 in crypto-asset adoption. Based on 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. This figure increased by 57.6% from the previous period.
According to Statista, the high adoption of crypto in Asia is because crypto is able to provide 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, both 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 as a whole.
Conclusion
Asia is not only a magnet for the Web3 and crypto industry due to economic and technological factors but also due to its supportive regulatory environment, continuous innovation, and wide 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, major 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 is scheduled to return in August 2024, providing an important platform to engage in the Asian Web3 market. Join and explore the opportunities and potential of Web3 and crypto in Asia by filling out the form via www.coinfest.asia.