Digital asset investment in Southeast Asia has attracted massive demands. Few regions here have implemented a friendly regulatory digital asset ecosystem, but some have yet. For wealth and asset managers, it is vital for them to own digital asset strategy following the trend worldwide and the rise of scams. This article defines the urgency of having digital asset strategies.
Digital assets have gained momentum and recognition as a mainstream status from the world’s financial institutions. Some crypto natives even reserved bigger market capitalizations. Governments around the world are also considering the implementation of tax clarity as well as regulation on digital assets. The epitomes are Portugal, Switzerland, Germany, and Australia.
Southeast Asia on the other hand arrives in a stage where they are the early adopters of digital assets. The adoption in the bloc grows well and competitive. They even grow the play-to-earn blockchain games to central bank digital currencies. Axie Infinity in the Philippines and Cambodia’s Project Bakong are some of the examples. Some institutional investors are considering this digital asset universe as their opportunistic playground. Many even see potential financialization in everything, including the HNWIs (high-net-worth individuals).
However, not all regions have a friendly crypto ecosystem. Indonesia for instance allows the trading. However, the financial institution does not allow the offering and digital sales facility. This is highly different from Singapore. In order to support the trend, the government of Singapore supports the flourishing of the digital asset ecosystem.
Providing the best ecosystem helps the market to flourish. This is because it should have diverse terms and conditions. Based on the contracts, digital assets could be in the form of financial assets, derivatives, or intangible assets. Thus, it is vital to have digital asset strategy in the region.