Cryptocurrency Regulation World Map - SEA

​For several years, crypto activity has been rather popular in Southeast Asia, or SEA. Despite this, before 2017, there was little to no regulation of such transactions. The Philippines was one of the first governments in the region to issue crypto rules this year. The country's central bank created standards for virtual currency trades.

Thailand's Securities and Exchange Commission (SEC) issued major legislation controlling the crypto business in 2018. This action prompted other major agencies in the area to respond, with Indonesia and Singapore issuing their own crypto-transaction restrictions in 2019.

Today, let us embark on another exciting journey with Fazzaco to Southeast Asia as we continue exploring cryptocurrency regulations of the world.

Crypto Legality

Different jurisdictions have different policies, but in Southeast Asia, the prevalent attitude has been one of distrust. Myanmar, for example, has outlawed all types of digital currency since 2020. While Myanmar's actions appear to be out of the ordinary, their attitude toward cryptocurrency appears to be the norm in the region.

This demonstrates a disconnect between popular opinion and government policy. While governments warn against cryptocurrencies, the general populace is enthusiastic about them and sees them as the way of the future.

Governments in the region that are perceived as more welcoming to cryptocurrencies have enacted rules on cryptocurrencies and cryptocurrency trading, and those that haven't are now considering doing so.

The crackdown on the crypto economy in Singapore and Thailand, for example, is felt most strongly in matters of anti-money laundering (AML), counter-financing terrorism (CFT), and licensing, which have all become increasingly strict in recent years.

The Philippines has a large expatriate population, and cash remittances account for more than 9% of the country's total GDP. Cryptocurrencies have become a low-cost way to send money in and out of the country, particularly for the unbanked, who only need an internet connection and a smartphone to complete transactions.

In Indonesia, cryptocurrencies are recognized as trading commodities rather than payment methods, and banks are prohibited from encouraging the use of crypto as a payment method. Cryptocurrencies must meet risk assessment, anti-money laundering, and counter-terrorist financing laws.

Vietnam is transitioning to digital and electronic payments on a big scale, favoring cashless methods and pushing the use of apps, QR codes, and e-wallets. Within this framework, cryptocurrencies look to be an appealing payment method, especially given that one million Vietnamese are said to be utilizing cryptos, with the number projected to rise dramatically in the coming years.

Cryptocurrency Industry in the Region

Southeast Asia is, too, home to a number of well-established crypto firms. Hong Kong (SAR) is home to investment portal Crypto.com and stablecoin service provider Tether, while Singapore is seeing an unprecedented influx of crypto-related businesses.

Most SEA countries are well aware of the advantages of embracing crypto, notably for remittances, and incorporating blockchain technology into their public services, such as Cambodia.

Governments now need to control crypto and have solid stances due to the increasing growth of the crypto sector. However, the legislation remain limited throughout Southeast Asia, implying that countries still have a long way to go in terms of administering and securing digital transactions.

What does the future hold?

Regulators in the Southeast Asia are clearly increasing their grip on crypto transactions. The most recent set of restrictions has been expanded to include activities such as initial coin offerings (ICOs) and cryptocurrency exchanges. The volume of crypto transactions is only increasing, therefore this trend is expected to continue in the near future. Crypto transactions will continue to be governed by clear criteria developed by regulators in the region.