The future of Web3 lies in Asia Pacific

Author: Ray Chan, blockworks Translation: Shan Oppa, Golden Finance

Asia Pacific (APAC) has become a strong driving force for Web3 innovation and adoption in 2023. From promoting capital flows into Web3 media and investments, hosting some of the world’s largest blockchain events, to leading the convergence of traditional finance and decentralized finance (DeFi), the Asia-Pacific region has shown extraordinary energy and momentum and is setting the stage for the next round. Bull runs lay the foundation for market cycles in the crypto world.

Media and Investment: Center of Momentum in Asia Pacific

Web3 Investment Appears to Slow Globally In the past year, investment in the Asia-Pacific region has accelerated.  

A case in point is the acquisition of The Block, a top cryptocurrency news and data provider, by a Singapore-based company for a whopping $70 million. The investment firm focuses on blockchain technology and cryptocurrency businesses, with its portfolio including Galxe, SEI and Story Protocol. In addition, they have previously invested in Asia-Pacific crypto media companies such as Taiwan’s BlockTempo and South Korea’s CoinNess.

This media investment trend extends to the rise of Asia Pacific media companies such as Blockhead and Coinlive from Singapore, and further emphasizes the region's role in shaping the global Web3 narrative influence.  

Asia Pacific has also become the global stage for important Web3 events.  

TOKEN2049 held in Singapore has become the world's largest Web3 event in 2023, attracting more than 10,000 attendees, 5,000 companies, and 300 exhibitors and 450 side events. Likewise, South Korea Blockchain Week and Hong Kong Fintech Week also attracted significant attention, further cementing the region’s position as a global hub for blockchain and Web3 discourse. These events demonstrate the Asia-Pacific region’s growing influence in the cryptocurrency space.

The importance of these developments cannot be overstated - these investments, acquisitions, events and local media presence signal a strong commitment to Web3 in Asia Pacific institutional support, solidifying the region’s position as a key player in the next wave of cryptocurrency adoption.

Bridging the gap between TradFi and DeFi

Financial institutions in Asia Pacific have been quick to adopt Action to bridge the gap between traditional finance and DeFi.  

UBS is allowing wealthy clients to trade cryptocurrency ETFs in Hong Kong, marking a major move to embrace DeFi. Meanwhile, HSBC is adding fuel to the tokenization fire with a gold-focused product that uses distributed ledger technology to trade tokenized ownership of physical gold. In Asia, people love gold products because it symbolizes prosperity and wealth that can be passed down to the next generation. As one of Hong Kong’s most trusted brands, HSBC’s decision to tokenize gold ownership meets the cultural preferences and investment needs of Asian investors. These initiatives signal the region’s forward-thinking in integrating digital assets into the traditional financial system.

Clear and consistent regulatory guidance

Clear and consistent regulatory guidance complements cryptocurrencies in the Asia-Pacific region growth in the field.  

For example, Hong Kong officially opened cryptocurrency trading to retail investors, granting its first licenses to HashKey and OSL. In Singapore, Ripple received a cryptocurrency payments license to boost its growth in the Asia-Pacific region, and Coinbase received a major payments institution license from the Monetary Authority of Singapore. These developments underscore the region’s commitment to a regulatory environment that is conducive to consumers and cryptocurrency projects.

When we look back on the past year, the lessons for the Asia-Pacific region are clear. The future of Web3 is not just about technology; It is also about cultivating a supportive ecosystem, including investments, events, regulatory clarity and integration with traditional finance. It involves regions like Asia Pacific driving the next wave of cryptocurrency adoption and setting the stage for the next bull cycle.

Looking ahead

As we look ahead to 2024 for cryptocurrency developments, SocialFi appears poised to Play a key role in the next wave of cryptocurrency adoption, especially in the Asia-Pacific region.  

Why? People in the region, many of whom have extensive experience using WeChat, already have a mindset and a set of expectations about how social media, communication services and value (born digital value) can be seamlessly integrated. And, according to Bain & Company, nearly 70 percent of people in Southeast Asia used at least one Metaverse-related technology in 2011.  

This familiarity has led to faster adoption of SocialFi products in Asia Pacific. Consider this: Almost everyone's smartphone is a hub for social media applications, but surprisingly, the top Web3 plans don't take advantage of SocialFi yet. In my opinion, this represents a huge and untapped market opportunity in Asia Pacific over the next few years.