The Phillippines, Thailand and South Korea are looking to create the next big crypto valley having recognised the promise of what countries such as Malta and Zug, Switzerland have achieved by welcoming cryptocurrencies and the blockchain.
This is quite a contrast to the mindset held by countries in Southeast Asia such as Vietnam and Thailand that have frowned down upon progress within the cryptocurrency trading and blockchain space. Thailand revealed a few months ago that it was about to levy a high tax rate on investors and trading platforms operating within the cryptocurrency market.
It is possible that this new found appreciation for all things crypto within Thailand is owing to local investors expressing their displeasure and the Philippines, South Korea and Japan actively supporting crypto-focused ventures. Thailand has now promised to provide a regulatory policy that is more lenient towards cryptocurrency startups.
NASDAQ reported back in July how the Cagayan Economic Zone Authority (CEZA), which is a government operated economic zone in the Philippines, issued 25 cryptocurrency licenses that allow crypto startups to manoeuvre with a lower tax rate being applicable to their businesses.
In an interview with Nikkie the chairman of FintechAlliance, Lito Villanueva mentioned that the Philippines was attempting to create the next ‘crypto valley in Asia’ with the establishments of a $100 million blockchain hub. She exclaimed, “The overwhelming interest from offshore companies in financial technology solutions and cryptocurrency trading that want to locate at the Cagayan Special Economic Zone has surpassed all our expectations,”.
Villanueva spoke further about the effects of easing regulation in the blockchain space and 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,”