The Development of Blockchain in SEA Must Be Balanced With Investor Security

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The behaviour of young investors in Southeast Asia has shifted from investing in the tangible asset sector to digital assets. The numbers were huge. Even after the TerraUSD crash, the investors lost up to USD $500,000.

Southeast Asia is one of the fastest-growing cryptocurrency markets in the world, despite regulatory and price uncertainties. The resulting spike in blockchain fanfare has prompted speculative investors to devote significant funds to unfinished projects, leaving them vulnerable to fraud.

The growth of blockchain technology in Southeast Asia raises several questions regarding creating a safe environment for regional fintech innovation. Alongside growth-friendly policies, governments have taken various regulatory responses to the blockchain. As the crypto landscape in Southeast Asia continues to evolve, regulators recognize the increasing opportunities for criminals to exploit platform vulnerabilities through hacking, fraud, and scams.

Southeast Asian users should also accept greater responsibility for disclosing any risks and dangers, such as the loss or theft of crypto assets.

Singapore already has a policy on how a crypto company should advertise cryptocurrency. That is a step taken by Singapore as their commitment to fintech innovation.

Beyond Singapore, a young, digitally savvy population also complements the appeal of blockchain, which contributes to social media-friendly messaging. Today’s online information environment further impacts how users socially construct this emerging technology, amplifying the above sentiments and reinforcing the user mindset.

This does not ignore the prospective benefits of blockchain, as several Southeast Asian countries have recognized the technology’s significant potential to increase payment efficiency and strengthen e-commerce.

However, given the above risks, regulators are expected to significantly regulate for protection and accountability as more and more users fall victim to these risks and demand more government action and accountability.

While these priorities are most relevant, Southeast Asian countries may also want to build on initiatives designed to educate the public and promote social responsibility around blockchains. Such as outlining due diligence procedures, best practices around crypto assets, and cryptocurrency mining ethics.

An educated and socially responsible population will reduce the need for heavy regulation as much as possible, enabling a conducive business environment and ensuring that the users themselves are adequately protected.

We confirm that our decision to focus on the Southeast Asian market is right decision. We believe there will be continuity with the growth of investors, regulation, and social responsibility around blockchain. Our goal remains the same, making SeaDEX not only the most adopted DEX in Southeast Asia but also raising awareness in crypto wisdom and education.