Cripto-Amigável não Equivale a Ser Cripto-Fácil: Um Estudo

• Asia's Rising Influence in the Cryptocurrency Sector in 2023
• Singapore: A Pro-Crypto Reputation with Caveats
• Hong Kong: A Crypto Hub with Strings Attached
• Japan: The Difficulties and Advantages of Being a Crypto Destination
• Clear Regulatory Environments in Asia vs. The US
• Global Crypto Regulations and the Need for Clarity

Asia's Rising Influence in the Cryptocurrency Sector in 2023

The year 2023 witnessed Asia's ongoing emergence as a vital region in the cryptocurrency world. This growth was largely due to well-known digital asset hubs like Singapore, the resurgence of Hong Kong, and Japan. While these jurisdictions have seemingly embraced digital assets, their enthusiasm can be slightly misleading. Places frequently referred to as crypto-friendly or pro-crypto often have some of the world's strictest rules. Being crypto-friendly does not necessarily mean being crypto-easy.

Singapore: A Pro-Crypto Reputation with Caveats

Singapore earned its pro-crypto reputation primarily due to its early initiatives to regulate the industry and the consultative approach of its regulators. However, while Singapore is fully committed to asset tokenization, it is not precisely crypto-friendly. Last year, Ravi Menon, the managing director of the Monetary Authority of Singapore, delivered a speech titled Yes to Digital Asset Innovation, No to Cryptocurrency Speculation. He further criticized cryptocurrencies for failing to meet the test of digital money, arguing that they perform poorly as a medium of exchange or store of value. The Monetary Authority of Singapore also issued guidelines last year to discourage public cryptocurrency trading, including banning crypto service providers from advertising in public areas.

Hong Kong: A Crypto Hub with Strings Attached

There has been much excitement about the resurgence of Hong Kong as a crypto hub. In June, the Hong Kong Securities and Futures Commission (SFC) started accepting license applications for cryptocurrency exchanges. However, this friendliness comes with many conditions. Operating an exchange in Hong Kong is neither simple nor cheap, as approval requires a team of lawyers, consultants, and insurers, and obtaining a new license can cost between $12 and $20 million.

Japan: The Difficulties and Advantages of Being a Crypto Destination

Japan's ruling Liberal Democratic Party has been clear about its intention to make Japan a Web3 capital. The regulatory approach of Japan requires crypto exchanges to separate exchange and customer assets, which helped FTX$3.28 -5.38% Japan users to recover their funds after a collapse in November 2022. However, the high taxation could be a significant obstacle for Japan to be a destination for crypto entrepreneurs.

Clear Regulatory Environments in Asia vs. The US

Singapore, Hong Kong, and Japan share an important commonality: they may not be crypto-easy, but they are relatively clear. This contrasts sharply with the United States, where crypto advocates often criticize the US government, and more specifically SEC Chair, Gary Gensler, for being hostile towards crypto.

The most significant issue is not overly severe regulations, but rather the ongoing debate over what constitutes a security and what is considered a commodity. The result is a crypto environment in the United States that is decidedly hostile, not because the rules are too strict, but because there is a lack of agreement on what they are.

Global Crypto Regulations and the Need for Clarity

Global crypto regulations are clearly trending towards rigor, as will be seen when the European MICA comes into effect next year. Regulations for the 27 EU member states, which cover about 450 million people, will be anything but lax. Thus, it might be time to retire the term crypto-friendly, which gives the impression of ease. A more accurate term is crypto-clear. As and when the crypto market fully recovers, this clarity will give places like Singapore, Hong Kong, and Japan a distinct advantage.

Edited by Jonathan Stoker