Philippines and Vietnam are considering crypto-friendly legislation, unlike India
The fate of cryptocurrencies in Asian countries is not solely determined by China and India. As the popularity of digital tokens continues to increase, smaller players such as the Philippines and Vietnam are getting involved.
According to the Philippines Stock Exchange (PSE), cryptocurrencies are an asset class they can no longer ignore. The crypto framework would make the existing exchange safer than foreign exchanges, they believe.
Meanwhile, Vietnam’s Prime Minister – Pham Minh Chinh – has reportedly asked the country’s central bank to conduct a study of cryptocurrency in order for the government to run a pilot program in 2021 to 2023.
During the last year, both of these countries have seen a massive increase in their citizens’ use of cryptocurrencies. According to the results of the Statista Global Consumer Survey they have the highest rate of cryptocurrency use after Nigeria.
According to a report from Vietnam News, China has ordered the State Bank of Vietnam (SBV) to study digital currencies and initiate a pilot program. Vietnam’s exact plans, however, remain unclear.
Several central banks worldwide, including the Reserve Bank of India (RBI), are considering blockchain-based implementations for fiat currencies, and China may follow suit. The bank has been asked to study digital currencies as part of Vietnam’s e-Government development strategy.
In any case, the move is a significant shift for Vietnam’s regulatory scenario. It was announced last year that the country’s Ministry of Finance had created a group to study virtual assets. The new study, according to the report, will help the country identify “positive and negative aspects” of cryptos.
The Philippine stock exchange wants to regulate crypto trading.
“If there is to be an exchange for cryptos, it should take place at the PSE. Why? Firstly, because we have the trading infrastructure. But more importantly, we will be able to offer investor protections, particularly with a product like crypto,” Ramon Monzon, President and CEO of the Philippine Stock Exchange (PSE), told CNN recently.
The price volatility in crypto trading can lead to instant wealth, but it can also lead to instant poverty, according to him. At present, the PSE is awaiting guidelines from the Securities and Exchange Commission (SEC) on how crypto or digital asset trading will be regulated.
At present, the country’s regulations do not allow the PSE to put in better safeguards for investors or to oversee digital currencies like Bitcoin.
The Philippines and Vietnam are on a different path than India and China
Philippines and Vietnam aren’t big enough to set the stage for Asian economies, but their regulatory decisions seem to be going against two of the continent’s largest economies. In addition to China, India is also considering legislation regulating digital currencies within its borders.
Since the RBI issued informal guidance to lenders in May, some of the largest exchanges in India have had trouble running their operations. China has also taken similar steps, causing large crypto miners and exchanges to rethink how they operate.
In the event that India and China rule against crypto currencies, the two smaller countries could become havens for crypto companies by acting in their favor.