An overview some, there remains a tendency to underestimate the appeal of cryptocurrency or question its legitimacy in the modern financial market.
However, collective tokens have continued to enjoy exponential growth in recent times, with the cumulative market capitalization of cryptocurrencies peaking at $237.1 billion at the end of 2019 (up from $128.78 billion just 12 months previously).
This has much to do with the global proliferation of cryptocurrencies, as regions across the globe have begun to legalise and regulate a variety of tokens and assets. This includes South Asia, but what’s the currency status of the crypto market here and what exactly does the future hold for this space?
Cryptocurrency in Asia – The Story so Far
Historically, Asian governments and authorities An overview have resisted the lure of cryptocurrencies, thanks largely to the chequered history of Bitcoin (which remains the poster boy and market leader for this niche).
This attitude was particularly prominent in regions such as Thailand, which has previously refused to regulate the space and instead imposed stiff penalties for those attempting to sell digital tokens without the due approval from the SEC.
In some instances, such sanctions include fines of An overview at least 500,000 baht ($16,540), and even two-year jail sentences in the worst case scenario.
The tide has started to turn in 2020, however, with the country’s first initial coin offering (ICO) by SE Digital following hot on the heels of permissive regulatory reforms by the SEC. What’s more, the regulator is planning further law changes in 2020, in order to position Thailand as a competitive player in the crypto market and improve the uptake of certification and licensing applications in the region.
The issue of competitiveness applies to South Asia as well as the global market, with the authorities in Hong Kong having also approved its first cryptocurrency fund commissioned by Ventrue Smart Asia.
Although this fund has set a relatively modest target of having $100 million in assets under management during its first 12 months of trading, Venture Smart has suggested that a host of similar funds may be approved if the project proves to be successful.
Understanding the Evolution of Crypto and the Global Market
The issue of global competitiveness is also key here, An overview key financial hubs such as Hong Kong facing the unenviable prospect of losing ground against the rivals if they maintained their stringent regulatory stance against cryptocurrency.
Of course, this type of approach was based on the historical perception of cryptocurrencies as being inherently unstable and vulnerable to manipulation. However, the emergence of more functional and versatile tokens such as Ripple (which also serves as an accessible payment platform and boasts lower processing times than Bitcoin) has added considerable depth to the marketplace.
On a similar note, the emergence of various tokens has helped to revolutionize the forex market, with so-called ‘stablecoins’ pegged to specific fiat currencies and capable of providing relatively secure returns to investors.
We must also factor in the impact of Covid-19, which is changing the behaviors of households across the globe and challenging existing shopping An overview and payment trends. This means that the low-cost and transparent solutions provided by crypto tokens will become increasingly popular in 2020, which is one of the reasons why the independent tech giant like Facebook is looking to expedite its own token launch this year.
With these factors in mind, cryptocurrency is clearly becoming a more mainstream entity on a global scale, while the demand for multifunctional tokens is set to increase markedly in the near-term.
This has the potential to impact positively on An overview almost every aspect of the South Asian economy, with the U.S. having apparently reported a 100% increase in the number of crypto-related jobs being advertised in relation to 2017’s numbers.
Remember, such markets are also accessible to top talent in regions like Hong Kong and Thailand, so it’s little wonder that their respective authorities have taken progressive steps to regulate their own domestic markets.
In this respect, the recent regulatory actions of Hong Kong and Thailand is likely to trigger a subsequent rush to market in South Asia, establishing the region as one of the most competitive players in the wider cryptocurrency space.
