Robinhood and Coinbase’s Asia Playbook
East Meets West: Strategic Synergies and Challenges in Asia
This report was written by Tiger Research, analyzing the strategic expansion of Western cryptocurrency exchanges like Robinhood and Coinbase into Asian markets, their localization approaches, and the competitive dynamics with regional players.
TL;DR
Western CEXs Target Asia: Companies like Robinhood and Coinbase are expanding in Asia, leveraging regulatory-friendly hubs and localized strategies.
Regional Players Maintain Stronghold: Local exchanges maintain competitive advantages through their strong market position. This makes them formidable competitors to Western exchanges seeking Asian market dominance.
Winning Strategies Require Localization: Success hinges on partnerships with financial institutions, regulatory compliance, and tailored product offerings that align with local user behavior.
1. Navigating the East-West Dynamic in Crypto Markets
Asia accounts for a dominant share of global crypto activity, driven by leadership in 1) trading volume, 2) retail adoption, and 3) institutional innovation. The region’s dynamic economies and strong retail participation have positioned it as a central force in the global crypto landscape.
As a result, Western exchanges—many of which have already saturated their home markets—are increasingly turning to Asia as the next frontier for expansion. Robinhood’s planned Singapore headquarters and Coinbase’s push into Southeast Asia with localized stablecoins underscore the region’s strategic importance.
However, the market is far from vacant. Local CEXs in each country already exhibit high user penetration, while global exchanges like Binance enjoy widespread adoption. These factors suggest that Western entrants will face considerable competitive pressure.
This report examines the evolving competitive landscape in Asia's crypto market. It explores the strategic moves of both Western and regional players, their challenges, and the emerging opportunities for collaboration in this rapidly developing ecosystem.
2. How Western Players Are Entering Asia
2.1. Robinhood’s Compliance-First Approach
Robinhood’s expansion into Singapore represents a strategic move to establish itself in Asia’s growing digital asset market. The company is leveraging the announcement of its recent $200 million acquisition of Bitstamp, a European digital assets exchange, to gain regulatory approvals and position itself within Singapore’s crypto-friendly framework. Bitstamp’s existing in-principle approval from the Monetary Authority of Singapore (MAS) provides Robinhood with a regulatory advantage, smoothing its entry into the market.
According to Bloomberg, the company plans to introduce crypto products in Singapore within 2025, operating under a new entity. Although the Bitstamp acquisition has not yet closed, its in-principle approval from the Monetary Authority of Singapore positions Robinhood favorably well for a compliant rollout.
Robinhood is differentiating itself from offshore platforms that operate in legal gray areas by prioritizing regulatory compliance. The company aims to attract compliance-conscious retail traders and institutional investors by ensuring regulatory alignment and providing a secure trading environment.
Robinhood's Singapore expansion is part of a larger international growth strategy. The firm has already introduced crypto trading in Europe and launched equity options trading in the UK. With expanded licensing, Robinhood is positioning itself to offer a comprehensive suite of digital and traditional financial services across multiple regions.
Singapore was chosen as its regional base for good reason—it offers a transparent regulatory framework, a high concentration of institutional capital, and a growing crypto-savvy population. These factors make it an ideal launchpad for Robinhood to test and scale its crypto offerings in Asia.
This strategic foothold reflects a broader trend among Western CEXs: entering Asia through regulatory hubs like Singapore before expanding to more complex markets. As regulatory clarity improves across the region, Robinhood is expected to scale its services beyond Singapore, using this initial presence as a springboard.
2.2. Coinbase’s Stablecoin and Infrastructure Play
Coinbase is expanding into Southeast Asia through a stablecoin-driven strategy. Thailand and the Philippines are pursuing initiatives with local currency-linked stablecoins, which aligns with Coinbase's strategic direction. Thailand is testing stablecoins through the Phuket Sandbox Initiative, while the Philippine Central Bank has approved a peso stablecoin pilot project, signaling regulatory openness toward these innovations.
To reinforce this momentum, SCB 10X recently launched a Base-powered Ruby Wallet. This wallet is built on Fireblocks' wallet-as-a-service infrastructure and offers both Thai Baht ($THBX) and US dollar stablecoins. This measure supports the growth of local infrastructure that aligns with Coinbase's broader goals, focusing particularly on promoting the use of Base and Thai Baht stablecoins.
Coinbase also integrated Transak into its wallet in 2022, enabling crypto purchases via local currencies and payment systems. This reflects Coinbase’s broader market entry strategy: rather than expanding its exchange business directly, it is focusing on wallet services and Base, in step with government-led digital currency initiatives. This approach contrasts with Robinhood's strategy, which emphasizes direct exchange expansion.
Through these strategic partnerships, Coinbase is embedding itself within Asia's evolving digital economy. This approach reflects Western companies' attempts to gain a foothold in Asia through infrastructure development, rather than directly competing with regionally dominant exchanges.
These two cases demonstrate different approaches. One prioritizes regulatory compliance and institutional investor attraction, while the other focuses on financial infrastructure and stablecoin utility. Both strategies have growth potential, but their success will depend on how effectively these companies navigate Asia's complex regulatory and competitive environment.
3. Market Dynamics: The Regional Powerhouses and Western Entrants
Asia's diverse regulatory landscape has led to the dominance of native exchanges in some regions while allowing global CEXs to thrive in others. Understanding these differing market structures is essential for Western CEXs seeking expansion opportunities in the region.
3.1. Local Exchange-Dominated Market
South Korea exemplifies the dominance of native exchanges due to strict regulatory frameworks. Local platforms like Upbit and Bithumb thrive by adhering to strict compliance measures, including travel rule mandates and financial reporting requirements. These regulations present a high barrier to entry, making South Korea a challenging market for Western CEXs without significant licensing and compliance investment.
Japan is another tightly regulated market, where local exchanges such as BitFlyer and Coincheck continue to dominate. The Financial Services Agency (FSA) enforces stringent licensing requirements, ensuring that only highly compliant entities operate. Foreign exchanges like KuCoin and Bybit have received regulatory warnings, highlighting the barriers Western firms face in market entry.
Binance entered the Thai market through a strategic partnership with Gulf Energy, a major Thai conglomerate. Together, they formed a joint venture to launch a regulated digital asset exchange. This collaboration enabled Binance to secure licensing approval from the Thai Securities and Exchange Commission (SEC), ensuring compliance with local regulations while leveraging Gulf Energy’s deep-rooted business presence in Thailand.
This strategy of aligning with influential local companies provides a compliant and scalable pathway for foreign exchanges to enter restrictive markets. It reduces regulatory friction while benefiting from established business networks. Rather than engaging in direct competition with dominant incumbents, Western exchanges may find greater success by forming local partnerships, focusing on institutional services, or offering specialized financial products tailored to regional demand.
3.2. Global Exchange-Dominated Market
Countries like Vietnam present a contrasting scenario. The absence of clear regulations for cryptocurrency exchanges limits the development of local trading platforms. Even in cases where local exchanges do exist, high tax rates drive investors toward global alternatives.
In this regulatory vacuum, global exchanges such as Binance, OKX, and Bybit have significantly expanded their influence. These platforms have gained market share offering low-fee policies and P2P services that effectively meet user needs—particularly in areas where local exchanges fall short.
As a market entry strategy, global exchanges have actively employed grassroots marketing to rapidly acquire users. Tactics included launching localized Telegram communities, offering referral programs, and enhancing local language support. These approaches effectively boosted market penetration by establishing direct communication channels with local users.
Many of these platforms often operated in legal gray areas where clear regulatory frameworks were absent. However, the recent tightening of regulations worldwide has increased the necessity to comply with local legal requirements. This shift is prompting major operational changes for global exchanges.
Several high-profile cases underscore this trend. In January 2024, India's financial enforcement agency requested IP blocking for nine foreign exchanges, including Binance. Access was restored only after Binance promised regulatory compliance. In November 2023, the Philippines Securities and Exchange Commission issued a warning to Binance for unauthorized operations. In March 2024, it officially directed the blocking of IP addresses for Binance's website and app. These actions clearly demonstrate the increasing regulatory oversight.
In response, global exchanges are transitioning away from operating in regulatory gray zones and instead adapting their models to fit within clearly defined legal frameworks. Regulatory compliance is no longer optional—it has become a critical foundation for building sustainable, long-term operations. This trend is expected to intensify as the cryptocurrency industry matures.
4. Strategies for Market Penetration
Success in Asia’s crypto markets requires deep localization—well beyond simple language translation. Exchanges must integrate local currencies, align with region-specific asset trends, and connect with native payment systems.
In Vietnam, P2P services supporting the Vietnamese Dong (VND) and strategic billboard campaigns have helped CEXs establish a strong foothold. Similarly, hosting events aligned with local festivals can boost brand recognition and market visibility.
Understanding user behavior is another critical factor. In remittance-heavy economies like the Philippines, platforms such as Coins.ph have attracted users by offering crypto-based remittance solutions. Coinbase has followed suit, introducing baht and peso-pegged stablecoins to improve fiat-to-crypto accessibility. These tailored financial products address localized needs and drive adoption among retail users.
Finally, forming strategic partnerships with local financial institutions is essential for building trust and expanding reach. In Thailand, for example, collaborations with banks facilitate fiat on-ramps, reducing barriers for retail investors.
To compete effectively in Asia’s complex and rapidly evolving crypto landscape, Western CEXs must prioritize regulatory alignment, ecosystem partnerships, and locally relevant innovation.
5. Future Outlook: Collaboration Over Competition
Rather than attempting to displace dominant players, Western CEXs may find greater success through collaborative strategies. Instead of competing directly with local exchanges, they can cooperate with them—positioning themselves as compliance allies or infrastructure enablers in coordination with regulatory authorities.
Asia today represents both an immense opportunity and a formidable challenge for Western CEXs. Success in this market will require more than simply expanding operations—it will demand a deep understanding of regional market dynamics, user behavior, and evolving regulatory frameworks.
Crypto regulations are evolving in every country, and this evolution is happening especially rapidly across Asia. Western exchanges looking to expand must adopt a compliance-first, partnership-driven approach. The key lesson for any CEX eyeing Asia: this is not a market to conquer, but a market to integrate into.
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