Currently, China takes the lead when it comes to blockchain applications surpassing the US. The central bank of China is also working on launching its digital currency. That is clear that China and Asia, in general, are taking steps to dominate the cryptocurrency market.
Singapore has become a preferred destination for Fintech firms who want to access the South East Asia market which is fragmented but has a strong market base of about 600 million people.
To govern and control cryptocurrency and blockchain business in general, the Payment Services Act has been set up and it will officially start to run towards the end of January. It is meant to promote security and more investment and innovation in the continent.
China made strides to deal with cyber vulnerabilities by setting up a law that governs cryptographic password. It set this law before the launch of its digital currency. This will set up a trend that is likely to be embraced by other countries in the region. Thailand has also set up laws governing cryptocurrency since it has recognized cryptocurrency as an upward trend. Malaysia is also working on regulations.
China is not the only country that is developing its digital currency. Japan and South Korea are also working on theirs and so far, they are already done with preliminary research of their own CBDC’s.
The US started at a good pace but lagged due to regulatory issues especially in regards to their classification.
The fear of most governments when it comes to cryptocurrency is money laundering and the fact that cryptocurrencies were mostly used for illegal activities. They have worked on addressing that by setting up regulations such as KYC to curb money laundering. Cryptocurrency and the blockchain, in general, are here to stay and thus it is the responsibility of countries to devise ways of governing the currency and getting the most out of blockchain technology. The biggest beneficiary is the financial sector which gets to cut down on the transactional costs.
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