Not only China and India are struggling with the future of cryptocurrencies in their own countries. As the popularity of digital tokens continues to rise, smaller players such as the Philippines and Vietnam are joining the market.
Cryptocurrencies, according to the Philippines Stock Exchange (PSE), are an asset class that they can no longer ignore. They also feel that incorporating the crypto framework into the existing exchange will make it safer for users than trading on foreign exchanges.
Meanwhile, Pham Minh Chinh, Vietnam's Prime Minister, is said to have urged the country's central bank to perform a cryptocurrency research so that the government can launch its own pilot programme from 2021 to 2023.
Over the last year, the use of cryptocurrencies by citizens in both of these countries has skyrocketed. According to the results of the Statista Global Consumer Survey, they have the highest rate of cryptocurrency use in the world, second only to Nigeria.
The plans of Vietnam are still a little unclear
Chnh has asked the State Bank of Vietnam (SBV) to examine digital currencies and conduct a trial programme, according to a report from Vietnam News. The particular details of what Vietnam is planning are, however, unknown.
Central banks around the world, like the Reserve Bank of India (RBI), have been investigating blockchain-based fiat currency deployments, and Chnh's decision could be similar. As part of Vietnam's e-Government development agenda, he has requested the bank to consider digital currencies.
Nonetheless, the move represents a significant shift in Vietnam's regulatory landscape. In April of last year, the country's Ministry of Finance established a group to research virtual assets. According to the newspaper, the new study will aid the country in determining the "good and negative elements" of cryptos.
Philippines is interested in listing digital tokens on its stock exchange
The Philippines' primary stock market seeks to regulate cryptocurrency trading.
“If there is to be a crypto exchange, it should be done at the PSE. Why? The first reason is that we have the necessary trading infrastructure. But, more crucially, we'll be able to have investor protection safeguards, which is very necessary with a product like crypto,” PSE President and CEO Ramon Monzon told CNN last week.
While price volatility in crypto trading might lead to instant riches, it can also lead to instant poverty, he pointed out. However, the PSE is still waiting for the Securities and Exchange Commission (SEC) to issue instructions on how crypto or digital asset trading would be regulated.
Currently, the country's legislation prevent the PSE from improving investor protections or bringing digital currencies like Bitcoin within its jurisdiction.
In comparison to India and China, the Philippines and Vietnam are on a different path
While the Philippines and Vietnam are not large enough to set the tone for Asian economies, their regulatory actions appear to be at odds with the continent's two largest economies. Aside from China, India has been debating a measure that would regulate digital currencies within its borders.
After the Reserve Bank of India offered informal guidelines to lenders in May, some of the country's top exchanges were forced to close their doors. China has taken similar actions, causing huge crypto miners and exchanges to rethink their business practises.
If India and China continue to oppose digital currencies, the two smaller countries might become havens for crypto companies if they treat them well.
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