In what seems to be an ingenious Crypto valley project, the Philippine authority and the governments of South Korea and Thailand have been reported to combine resources to execute the idea. This move was reportedly triggered by the apparent success of the Malta and Zug, Switzerland in the creation of an economic and regulatory atmosphere which is conducive for digital currency and blockchain technology as a whole.
This collaboration came through despite the fact that most countries in South Asia, including Thailand and Vietnam, have been stringent on the cryptocurrencies trading and other blockchain-related developments since last year. Also, Thailand, which is a part of this project also revealed intentions to mount the digital currency traders and trading platforms with a substantial tax imposition.
This can be described as a turning point as the Thailand government has recently vowed to create an enabling environment and a conducive legal framework which is geared towards cryptocurrency establishments. This must have been propelled by the overwhelming amount of local investors and the increasing support given to the digital currency-related businesses by the Philippines, South Korean and Japan governments.
South Korea and Philippines in the Frontline Position
Sometimes last month, it was reported on various mainstream media platform and crypto-based as well that the Cagayan Economic Zone Authority (CEZA), which is the apex authority in the northern tip of the Philippines, has decided to authorize about 25 virtual currency exchange licenses in order to enable digital currency establishment to operate with tax pardons and other inherent benefits.
The chairman of FintechAlliance, Lito Villanueva stated in an interview that the country has been on the stride to develop the next “crypto valley in Asia” by establishing $100 million blockchain hub. She said;
“With these startups come huge investments in their portfolio. Surely, each country would want to take a piece of the action. Taking blockchain and fintech players in with enabling regulations and potential investment incentives would surely make the game more exciting.”
The Philippine government has already created a crypto-friendly hub in a state-controlled economic zone but aside that, some of the establishments in the Philippines consists of Coins, which closed a $10 million Series A funding round from Naspers and Quona Capital, have rose to become the most popular and reputable platforms in the country, outside of crypto and finance sectors.
Also, the Philippines arm of the coin has reportedly been a part of top ten mobile application in the Philippine market when it was at its peak.
The South Korean government has also contributed immensely to the growth of the cryptocurrency market and the blockchain technology in general as it has taken measures to legitimize its use in the country, the country has drafted its first virtual currency and blockchain legislation. The government is also anticipating an agreed investment of $4.4 billion in various new technology companies and placing its target on big data and the blockchain in the next 12 months.
Amazingly, the regional governments in South Korean which are; Sejong, Jeju Island, and Seoul have embarked on the race of becoming the blockchain capital of Asia by operating an “open door” policy to interested cryptocurrency firms which intend to operate within its jurisdiction, and it also wants to shower them with various incentives.
Jeju Island governor, Won Hee-Ryong had recently invited Roger Ver (an early investor in bitcoin-related startups) for the purpose of demonstrating how to use cryptocurrency, the governor cannot seem to conceal its bias for the blockchain technology. He sees it as a potential for the country to achieve its dream of becoming the world’s leading in global internet development which will mean displacing China and Japan.
“Blockchain is an opportunity for Korea to take the lead in global internet platform [development,]” he stated.
As Japan remains the largest virtual currency exchange market placing it ahead of the United States, Asia has consequently become not only the world’s largest in virtual currency but also in the blockchain technology as a whole. This must have culminated in the latest efforts by countries like Japan, Thailand, South Korea and the Philippines to grow further the blockchain industry which will undoubtedly leave a lasting impact on digital currencies.
With Japan as the largest cryptocurrency exchange market ahead of the US, Asia has already become the biggest cryptocurrency and blockchain market. Increasing efforts and initiatives by countries like Thailand, South Korea, Japan, and the Philippines to develop the blockchain sector will positively impact cryptocurrencies in the long-term.