Crypto rules diverge across developing Asia

Significance

Most Asian states recognise the benefits of cryptocurrency adoption, such as low transaction costs for remittances and the introduction of blockchain technology into public services. However, the various risks related to cryptos have resulted in significant variation in the pattern of regulation across the region.

Impacts

• Cryptos are proving a cost-effective financial instrument for some countries dependent on remittance income.
• The precise scale of illegal activity in cryptos is hard to ascertain but money laundering and cyber scams are common.
• Retail investors still lack reliable and tested redress mechanisms in cases of crypto-based fraud or collapse of token values.