Southeast Asia has emerged as a key driver of global economic growth, with blockchain technology showcasing significant potential. None Group's pioneering research team recently published the Critical Trends in Blockchain report, highlighting cryptocurrency regulations across Taiwan, Thailand, Vietnam, Indonesia, Malaysia, Singapore, and the Philippines.
Understanding regulatory policies is the first step for businesses entering new markets. This article synthesizes the report’s findings to provide a clear overview of the evolving crypto regulatory frameworks in these regions.
Overview of Regulatory Trends
Blockchain regulations often shift in response to technological advancements and market dynamics. Major incidents—like the 2017 ICO boom—prompted rapid policy adjustments in Thailand and Singapore to protect investors. While stricter short-term regulations may emerge, they don’t necessarily hinder long-term innovation.
Taiwan’s Blockchain Regulatory Framework
Taiwan has gradually formalized crypto asset regulations since 2021. Key developments include:
- Anti-Money Laundering (AML) Measures: The Financial Supervisory Commission (FSC) oversees virtual asset platforms, enforcing AML/CFT compliance. By December 2023, 25 firms were approved.
- 2023 VASP Guidelines: Focused on transparency, asset segregation, and investor protection.
Key Principles:
- Enhanced issuance oversight
- Strict asset listing/delisting reviews
- Mandatory client-fund separation
- Fair trading practices
👉 Explore Taiwan’s crypto compliance tools
Thailand’s Pro-Innovation Stance
Thailand’s 2018 Digital Assets Business Emergency Decree defines crypto as "digital assets" (including utility tokens). Highlights:
- Licensing: Exchanges need SEC approval (50M THB capital minimum).
- User Protection: Segregated assets and banned leveraged services.
- 2023 Restrictions: Prohibited crypto payments and yield-generating products.
Vietnam’s Unclear but Tolerant Approach
Vietnam lacks comprehensive crypto laws but maintains:
- Ban on Crypto Payments: Enforced by the State Bank of Vietnam.
- Securities Restrictions: SSCV bars public firms from crypto activities.
- Market Growth: Global exchanges like Binance operate despite ambiguity.
Future Outlook: A 2022-formed Blockchain Association may propose clearer rules.
Indonesia’s Evolving Policies
Indonesia treats crypto as commodities under Bappebti. Recent updates:
- National Exchange: Launched in July 2023.
- Regulatory Shift: Oversight moving to OJK by 2025.
- Expanded Trading: 501 approved assets (June 2023).
Malaysia’s Structured Framework
Malaysia’s Securities Commission regulates crypto under securities laws:
- Licensed DAXs: 6 approved exchanges (e.g., BTC, ETH trading).
- Capital Requirements: 5M MYR minimum.
- Asset Custody: Strict cold/hot wallet rules.
Singapore’s Balanced Model
Singapore’s "blockchain-friendly" approach includes:
- DPT Regulation: Exchanges under Payment Services Act.
- 2023 Stablecoin Rules: Reserve-backed, high-liquidity mandates.
- Investor Protections: Segregated client funds by year-end.
👉 Singapore’s licensing insights
Philippines’ Clear but Restrictive Policies
The Bangko Sentral ng Pilipinas (BSP) mandates:
- VASP Licensing: Required since 2021 (KYC/AML focus).
- 2022 Freeze: No new VASP licenses until 2025.
- Binance Ban: Ordered exit in 2023 over compliance issues.
FAQ Section
Q1: Which Southeast Asian country has the strictest crypto regulations?
A1: Thailand, with its ban on crypto payments and yield products.
Q2: Can crypto be used for payments in Vietnam?
A2: No, the State Bank prohibits crypto as legal tender.
Q3: What’s the capital requirement for Thai exchanges?
A3: 50M THB (10M THB if no custody).
Q4: How does Singapore regulate stablecoins?
A4: Mandates 1:1 low-risk reserves (August 2023 rules).
Q5: Is Malaysia friendly to crypto exchanges?
A5: Yes, but only six licensed DAXs operate under strict SC oversight.
Final Thoughts
Southeast Asia’s regulatory diversity offers both opportunities and challenges. Taiwan and Singapore lead in clarity, while Vietnam and Indonesia show growth potential despite ambiguity. Businesses must navigate local compliance to thrive.