Southeast Asia Blockchain Week (SEABW2024) : What to Keep in Mind
Navigating the Dynamic Landscape
This week, Bangkok is hosting the first-ever event that encompasses the entire Southeast Asian region, a departure from country-specific events like GM Vietnam or Philippines Blockchain Week. This symbolic gathering showcases the growth and progress of the Southeast Asian blockchain ecosystem.
Tiger Research, since its founding three years ago, has long recognized the potential of Southeast Asia and the development possibilities of the Web3 industry. With the help of Hashed and Shardlab, Tiger Research is participating in and sponsoring this event, demonstrating its deep interest in and understanding of the Southeast Asian market and its commitment to contributing to the development of the region's blockchain ecosystem.
As we approach the Southeast Asia Blockchain Week (SEABW) 2024, let's examine a few key points to keep in mind.
1. Key points about the SEA market
First, while it may be reasonable to view Southeast Asia as a single geopolitical region, it is unwise to lump it together as a single business jurisdiction. The six major Southeast Asian countries—Indonesia, Vietnam, Singapore, Thailand, Philippines, and Malaysia—have vastly different languages, political systems, economic structures, and even cultures and cuisines. It's akin to the diversity among European nations.
Moreover, the pace of economic development and the level of mutual understanding among these countries are as heterogeneous as the understanding between Korea and Japan. Therefore, it is ignorant to consider the "Southeast Asian" market as a single business territory and attempt to plan market entry or comprehend it as such. Southeast Asia is not the EU or the United States.
However, despite the micro-level differences, there are macro-level commonalities. Southeast Asia is one of the fastest-growing regions in Asia, with a median age between 25 and 30, indicating a remarkably young population, workforce, and willingness to develop. Governments are investing heavily in technology-based new industries, including blockchain, as a new growth engine. And unlike in the past, there is a diverse pool of young, vibrant, and highly educated talent. For these reasons, it is clear that Southeast Asia will emerge as a leading market, not just an emerging one, in Asia over the next decade.
2. Six Major Southeast Asian Countries
As mentioned earlier, while the six major Southeast Asian countries share similarities, they are fundamentally distinct markets.
2.1. Thailand
For example, Thailand, the host of this event, is the most active in Southeast Asia in terms of crypto investment and trading. Robust investments are being made by Thailand's solid middle class. Moreover, traditional financial institutions, including large banks, have long been researching ways to combine blockchain and traditional capital markets.
2.2. The Phillippines
The Philippines has the largest number of Web3 users, with 20-30% of the users of Sky Mavis's Axie Infinity, a first-generation Web3 game, located in the Philippines. This demonstrates the Philippines' significant role in the Web3 ecosystem.
2.3. Vietnam
Vietnam, following India, is a developer powerhouse and an emerging protagonist in Web3, birthing major blockchain gaming companies like Sky Mavis. Vietnam's young and talented developers are expected to play a crucial role in the global blockchain ecosystem.
2.4. Singapore
Singapore, along with Dubai, Abu Dhabi, and Luxembourg, is a leading city country in blockchain regulations, including tokenized securities, allowing companies to operate without regulatory uncertainty. Numerous Asian blockchain companies have their holding companies or headquarters located in Singapore. Singapore is serving as a hub for the Asian blockchain industry.
2.5. Indonesia
Indonesia, with the world's fourth-largest population and a rapidly growing economic structure, can be considered Southeast Asia's elder brother and giant that deserves the most attention in the long run. Moreover, Bali is being hailed as Southeast Asia's crypto oasis. Indonesia's potential is immense.
2.6. Malaysia
Malaysia is a gem of a country, home to star players like CoinGecko and EtherScan, global-level blockchain infrastructure and analytics firms. Malaysia, too, is playing a significant role in the blockchain ecosystem.
3. Three things to keep in mind
The blockchain scene in Southeast Asia is truly dynamic and rapidly evolving. Those participating in SEABW likely want to secure users, build communities, and collaborate with large institutions and corporations in Southeast Asia. To achieve this, three things must be kept in mind.
First, localization is a must. The English literacy in Southeast Asia is very different from that of the staff welcoming you at tourist destinations. To enter each country and form communities, it is necessary to develop entry strategies tailored to the language and culture of the respective country and provide your services and infrastructure in a user-friendly manner. Localization is essential for successful market entry.
Second, understanding each country's regulations is crucial. Southeast Asian countries' blockchain-related regulations are less clear than one might think, as these are still early-stage markets. However, just because there are no rules doesn't mean you can do everything. In Asian countries, unlike in Western countries, you must operate within the permitted framework. Just because there are no regulations doesn't mean you can do anything. Regulations in Vietnam, Singapore, and Indonesia are particularly strict. It is imperative to seek appropriate legal advice.
Lastly, the community must be activated. Southeast Asia's biggest income opportunity is its young and passionate fans. There is no place more important than Southeast Asia for nurturing the fandom, future users, and developers of your services and infrastructure. Many projects enter countries with a mindset of extraction rather than growing together. While such projects may have short-term effects, they won't last even six months in the rapidly changing blockchain market. Building a genuine community is the key to long-term success.
I'm writing this from Thailand, where temperatures are reaching 40 degrees Celsius. I hope everyone has a safe and fruitful event.
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