Even as India and China clamp down on crypto, Philippines and Vietnam are considering crypto friendly regulations
- The national stock exchange of the Philippines wants to bring
cryptoassets under its purview, while Vietnam’s central bank has been asked to implement a pilot program for cryptocurrencies.
- Both of these countries are looking to introduce new regulations to bring cryptocurrencies into the mainstream.
- The Philippines and Vietnam have the highest
cryptocurrencyuse rate in Asia.
- And, they both seem more optimistic about digital tokens compared to their largest Asian counterparts — India and China.
AdvertisementChina and India aren’t the only Asian countries wrestling with the fate of cryptocurrencies in their country. Smaller players like the Philippines and Vietnam are stepping into the arena as well as the popularity of digital tokens continues to rise.
According to the Philippines Stock Exchange (PSE), cryptocurrencies are an asset class that they cannot afford to ignore anymore. And, they believe bringing the crypto framework to the existing exchange would be safer than people trading on foreign exchanges.
Meanwhile, Vietnam’s Prime Minister — Pham Minh Chinh — has reportedly asked the country’s central bank to conduct a study of cryptocurrency so that the government can run its own pilot program from 2021 to 2023.
Both these countries have seen a massive increase in their citizens using cryptocurrencies over the past one year. They have the highest rate of cryptocurrency use in the world, after Nigeria, according to the results of the Statista Global Consumer Survey.
Vietnam’s plans are still a little unclear
According to a report from Vietnam News, Chính has directed the State Bank of Vietnam (SBV) to study digital currencies and carry out a pilot program. However, the exact details of what Vietnam is considering are unclear.
Central banks worldwide — including the Reserve Bank of India (RBI) — have been considering blockchain-based implementations for fiat currencies, and Chính’s decision could be around the same. He has asked the bank to mull digital currencies as part of Vietnam’s e-Government development strategy.
That said, the move is a shift for Vietnam’s regulatory scenario so far. The country’s Ministry of Finance had created a group to study virtual assets in April last year. The report suggests that the new study will help the country find “positive and negative aspects” of cryptos.
Philippines wants digital token on its stock exchange
The national stock exchange of the Philippines wants to bring crypto trading under its purview.
“If there should be any exchange for cryptos, it should be done at the PSE. Why? Number one, it’s because we have the trading infrastructure. But more importantly, we’ll be able to have investor protection safeguards especially with a product like crypto,” Ramon Monzon, President and chief executive officer (CEO) of the PSE, told CNN last week.
He pointed out that while the price volatility in crypto trading can lead to instant riches — it can also result in instant poverty. But, as of right now, the PSE is waiting for the guidelines to come in from the Securities and Exchange Commission (SEC) on how crypto or digital asset trading will be governed.
Currently, the country’s regulations do not allow the PSE to put in better safeguards for investors or bring digital currencies like Bitcoin under its purview.
The Philippines and Vietnam are on a different path than India and China
While the Philippines and Vietnam aren’t big enough to set the stage for Asian economies, their regulatory decisions seem to be going against two of the largest economies on the continent. Other than China, India has also been considering a bill that regulates digital currencies within its borders.
Exchanges in India have been having trouble running operations after the RBI issued informal guidance to lenders in May that led them to withdraw services from some of the largest exchanges in the country. China also has taken similar steps leading large crypto miners and exchanges to reconsider how they do business.
If India and China rule against these currencies, the two smaller countries could become havens for crypto companies by acting favourably towards them.
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