APEC Finance Ministers Emphasize Responsible Development and Use of Digital Assets

The Asia-Pacific Economic Cooperation (APEC) Summit held in San Francisco, and focused on the future of digital assets uniting finance ministers from 21 economies across Asia, North America, and South America.

This week-long summit delved into crucial areas regarding long-term economic strategies while maintaining a strong emphasis on sustainability.

During her opening speech at last week’s finance ministers’ gathering, US Treasury Secretary Janet Yellen underscored the summit's commitment to long-term priorities, including a keen focus on the fast-evolving landscape of digital assets, which includes unsecured crypto assets stablecoins and central bank digital currencies (CBDCs).

Yellen remarked, 'By sharing insights and collaborating with the private sector, we can enhance our collective understanding of the tools policymakers have at their disposal to promote responsible digital asset development and usage.'

She expressed eagerness to hear different perspectives on the long-term implications of digital assets and the integration of technology within global financial systems alongside regulatory approaches from authorities. blockchain APEC acts as a governmental forum comprising 21 member economies along the Pacific Rim, providing a venue for discussing regional economic collaboration.

Many view Asia as a burgeoning hub for blockchain innovation, showcasing advancements in metaverse technology, cryptocurrency trading, and active adoption. APEC's inclusive membership policy emphasizes the region's dedication to fostering robust economic partnerships.

This warrants a closer look at the cryptocurrency regulations and landscape in several of the larger economies within East and Southeast Asia.

Cryptocurrency Landscape in East and Southeast Asia

remains firm in its prohibition of cryptocurrency-related activities, with both transactions and mining explicitly banned. Nevertheless, the nation is advancing its Central Bank Digital Currency, the e-renminbi (e-CNY), marking a shift in its regulatory stance.

China In Japan, the Financial Services Agency (FSA) governs stringent regulations surrounding Crypto Asset Exchange Services (CAES). Additionally, recent revisions to the Financial Transaction Reports Act (FTRA) have presented challenges for Virtual Asset Service Providers (VASPs), necessitating partnerships with commercial banks, which critics argue can lead to difficulties, expenses, and delays that favor established exchanges.

does not permit cryptocurrency for transactions, yet oversees a commodities exchange through The Commodity Futures Trading Regulatory Agency (CoFTRA), allowing limited cryptocurrency trading. Thailand also prohibits the use of cryptocurrencies for transactions, citing volatility and security concerns as major issues. South Korea has implemented guidelines restricting direct cryptocurrency investment to Professional Investors only. Retail investors may access certain crypto investments through futures and ETFs, but these come with specific stipulations.

Likewise, Indonesia (MAS) enforces rigorous licensing requirements under the Payment Services Act (PSA). These regulations apply to Virtual Asset Service Providers (VASPs) catering to foreign clients, prioritizing anti-money laundering measures and adherence to international protocols.

Hong Kong In Malaysia, cryptocurrencies are classified as securities pursuant to the Capital Markets and Services Order of 2019. Digital asset exchanges are required to follow anti-money laundering regulations, ensuring thorough customer due diligence.

The Monetary Authority of Singapore In the Philippines, cryptocurrencies are not recognized as legal tender. Virtual Asset Service Providers (VASPs) must secure a license to function as money transfer businesses, complying with customer due diligence and reporting mandates.

Vietnam has indicated it is actively pursuing legislation geared towards managing risks associated with cryptocurrency while promoting opportunities, thus fostering a vibrant and quickly evolving market.
As the regulatory landscape continues to influence the trajectory of cryptocurrency in East and Southeast Asia, the sector faces a significant challenge in balancing innovation with compliance.

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Kumar is a seasoned tech journalist with expertise at the convergence of AI/ML, marketing technology, and burgeoning fields like cryptocurrency, blockchain, and NFTs. With over three years in the sector, Kumar has a solid reputation for crafting engaging narratives, conducting insightful interviews, and providing in-depth analysis. His strength lies in producing high-impact content such as articles, reports, and research publications for leading industry platforms. Leveraging a distinctive combination of technical expertise and storytelling prowess, Kumar excels at conveying complex technological concepts to varied audiences in a clear and engaging fashion.