3 Reasons Why Asia Holds the Potential to Become the Center of the World's Web3 and Crypto Industry
3 Reasons Why Asia Holds the Potential to Become the Center of the World's Web3 and Crypto Industry
The regulatory actions in the US throughout 2023, which tended to be unfriendly towards the crypto industry, have prompted several companies to start withdrawing and seeking safer territories. Asia sees this opportunity to become a more welcoming and advantageous hub for Web3 and crypto businesses for industry players and investors alike. Lennix Lai (Chief Commercial Officer, OKX) stated in a panel session at Coinfest Asia 2023 that discussions on crypto assets in the United States have dwindled, while conversely, Asia has witnessed a surge in more crypto-friendly developments. He attributed this trend to the fact that Asia boasts a significant share of the global cryptocurrency market and user base.
Apart from market trends and a substantial population, Asia has at least three other reasons why it deserves to be a center for the crypto and Web3 industry worldwide.
Potential Economic Value Growth of Web3 in Asia
According to an Emergen Research report, the global web3 market is estimated to reach US$81.5 billion by 2030, with a CAGR growth rate of 43.7%. The Asia-Pacific region is projected to record the fastest revenue growth rates due to consistently high demand from sectors such as banking, financial services, and insurance (BFSI); e-commerce and retail; healthcare; and pharmaceuticals. In Southeast Asia 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 the annual Meta and Bain & Company SYNC Southeast Asia report, this sub-region also excels in fintech and web adoption. The significant market share of Web3 in Asia reflects a strong drive for innovation and the adoption of new technologies in the region. It's not just about sustaining economic growth but also about a profound transformation in how society, companies, and governments interact with digital technology, opening up significant opportunities for investment and innovation.
Crypto Business Friendliness
The Recap report on cities measuring friendliness towards crypto communities and activities lists Dubai, Singapore, and Hong Kong among the top seven rankings. Dubai boasts 772 crypto-based companies for its residents to choose from when seeking careers in this sector.
The city also has a high quality of life with a score of 175.84, the seventh-highest overall ranking. Singapore hosts more than 247 fintech companies, with a focus on blockchain technology. According to Forkast, Cyberport Hong Kong, a government-backed technology business district in Hong Kong, has approximately 150 Web3 companies. On the other hand, although not among the top 20, Indonesia should be considered a crypto-friendly country.
According to Kominfo, there are 1,629 companies or startups registered in the Online Single Submission (OSS) system under the category of "Blockchain Technology Development Activities." Meanwhile, in the Asian region, prestigious Web3 and crypto events are held in Dubai, Singapore, South Korea, Japan, and Indonesia. Specifically for Indonesia, the nearest 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 leading players in Southeast Asia to attend here, both in terms of the conference itself and as sponsors of the event. We are very excited and meet many prospects and meet many customers here," said Amy Zhang, VP Sales Fireblocks when attending Coinfest Asia 2023. In its third edition, Coinfest Asia will bring together more than five thousand participants from various countries in Asia and other regions. This event opens up sponsorship opportunities for companies looking to expand or extend their business in this region.
High Crypto Adoption
Asian countries such as India, Vietnam, the Philippines, and Indonesia rank in the top 10 in crypto asset adoption. According to Chainalysis' report, the growth of crypto adoption in Asia is reflected in the increased transaction volume, purchasing power, and population. The adoption rate by institutions in these Asian regions has also increased, with around 68.8% of the total transaction volume coming from transfers worth US$1 million or more. This figure increased by 57.6% in the previous period. According to Statista, the high adoption of crypto in Asia is because crypto provides accessibility, speed, and cost-effectiveness. It is also used for about one percent of e-commerce transactions in the Asia-Pacific region. High crypto adoption in Asia, both by the general public and institutions, positions the region as a major potential center for the development and innovation of crypto and Web3 technologies. With growing acceptance of blockchain-based technology, Asia has significant opportunities to become a center for crypto business growth, investment, and decentralized ecosystems overall.
Conclusion
Asia is not only a magnet for the Web3 and crypto industry due to economic and technological factors but also because of supportive regulatory environments, sustainable innovation, and widespread adoption across various sectors. This signifies a new era where Asia is not only following but also potentially leading in the global digital revolution. Meanwhile, significant efforts have been made in Asia to drive mass adoption and sustainable innovation in the Web3 space. One example is through leading crypto and Web3 events such as Coinfest Asia. This event is scheduled to return in August 2024, becoming 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 at www.coinfest.asia.
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*Disclaimer:
This content aims to enrich reader information. Always conduct independent research and use disposable income before investing. All buying, selling, and crypto asset investment activities are the reader's responsibility.
