Digital Asset Opportunities and Regulatory Landscape In ASEAN

Digital assets represent a rapidly growing and disruptive innovation with the potential to unlock new avenues for financial services. An evolving term, digital assets generally refers to a representation of value that is recorded on a distributed ledger or blockchain. The term can encompass a wide range of assets, including crypto assets, stablecoins, non-fungible tokens (NFTs), central bank digital currencies (CBDCs), and security tokens. 

ASEAN’s digital assets adoption rate has far outpaced the global trends. One in five Vietnamese (21%) holds digital asset, tripling the global average of 6.8%. Thailand (18%), the Philippines (13%), and Singapore (11%) also follow the trend of crypto enthusiasm. By 2026, the ASEAN digital assets market revenue is expected to grow by 7.44%, reaching $11.6 billion USD. Indonesia, for example, experienced a crypto boom in 2023 when its crypto transaction volume skyrocketed 350% within a year. This regional trend is fueled by ASEAN’s large population of “digital generation” and a host of upstart SMEs seeking to utilize digital assets in their business model.

Financial Potential with Digital Assets 

A widespread adoption of digital assets can revolutionize financial markets, making them more inclusive, transparent, and efficient. In ASEAN, the impact could be profound. Over 70% of Southeast Asians are either unbanked or financially underserved, while 60% of SMEs, which forms the backbone of the region’s economy, struggle to access financing due to inadequate availability of credit history data. Coupling with the attempts to bridge the digital divide, the new blockchain-based financial services can build on the region’s high mobile fintech penetration to expand a wide range of financial products to underserved population. 

Digital assets offer a cheaper, faster, and programmable settlement solution, which is especially critical for a region dependent on international trade and remittances. By using stablecoins – digital currencies designed to keep their value stable by pegging to an asset like a fiat currency – manufacturers can settle cross-border orders more cheaply and in near-real-time. In theory, transactions executed on blockchain networks such as through Solana, can cost less than $0.001 USD and be confirmed within 0.4 seconds. This is a stark contrast to traditional cross-border payment systems, which can take days to clear as they pass through multiple intermediaries. Additionally, transactions can also be automated through smart contracts powered by blockchain, rendering an extra layer of security and transparency. 

This technology is also a revolution for remittances. For example, remittances account for approximately 8.3% of the Philippines' GDP, and stablecoins could slash the cost of these transfers from a global average of 6.62% to as low as 1%. 

Nonetheless, crypto transactions can be prone to untraceable frauds and cyberattacks. Realizing these potentials thus depends on putting necessary regulations in place to safeguard the concerns of digital assets being used for malignant ends.  

Fragmented Regulatory Landscape of Digital Assets 

Despite the lack of region-wide agreement, ASEAN governments have paid close attention to digital assets. During the 10^th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) in 2023, the ministers discussed “crypto asset taxation” as part of ASEAN’s preparation program to address future challenges.  

Classification and Regulating Bodies 

At the national level, digital assets regulatory landscape remains fragmented, with each country progressing at a different pace. How digital assets are classified determines who has the oversight. Primary regulators can be central bank, securities commissions, ministries, or a combination of these. In Malaysia, for example, digital assets are treated as securities and thus regulated by the Securities Commission Malaysia. Thailand's Securities and Exchange Commission (SEC) also oversees all digital assets, classifying them as either cryptocurrencies or digital tokens. 

The Philippines takes a function-based approach. The Bangko Sentral ng Pilipinas (BSP) regulates Virtual Asset Service Providers (VASPs) while those that are deemed securities fall under the jurisdiction of the Securities and Exchange Commission (SEC). Similarly, the Monetary Authority of Singapore (MAS) regulates digital payment tokens (DPTs) under the Payment Services Act, while those deemed as securities fall under a separate framework. 

In January 2025, Indonesia broadened the definition of any crypto assets from commodity-like for trading instruments to digital financial assets which encompass functions such as storage of value, investment, and asset representation. Consequently, the oversight was transferred from Commodity Futures Trading Regulatory Agency (BAPPEBTI) to Financial Service Authority (OJK). Following the passage of Law on Digital Technology Industry, Vietnam is also now developing regulatory framework that will provide clarity on digital assets exchange. 

Licensing and Compliance Requirements 

ASEAN nations are in the process of developing their own digital asset regulatory frameworks. Singapore and Thailand are taking a cautious approach, establishing regulations to ensure that digital asset issuers and operators comply with local laws and prevent misuse. 

In Singapore, the MAS imposes stringent requirements on digital assets. Providers must seek Digital Token Service Providers (DTSPs) license which requires, among other things, a base capital of $250,000 SGD (around $195,000 USD), a mandatory local staffing presence, and a robust compliance with anti-money laundering and counter-terrorist financing measures (AML/TF). In June 2025, the MAS also expanded its regulatory reach to DSTPs serving customers outside Singapore. It cited the adverse risk of money laundering as the reason behind the high bar and stating that it “will generally not issue a licence.” 

Under a series of Decrees, Thailand's Securities and Exchange Commission (SEC) has established a robust regulatory framework for digital asset providers, emphasizing strict cybersecurity and AML/TF compliance. The regulations now extend to offshore platforms that serve Thai customers through a 'bright-line test.' A business is deemed to be operating in Thailand when meeting criteria such as displaying content in the Thai language, using a Thai domain, accepting payments in baht, or advertising within the country. 

CBDCs and Stablecoins 

ASEAN is weighing the potential of CBDCs and closely keeping tabs on the global development of stablecoin. Thailand, Indonesia, and Singapore are all at various stages of CBDC piloting. In 2022, Bank of Indonesia (BI) launched Project Garuda to develop Digital Rupiah as a counterweight response to the growing cryptocurrency demand. However, the Project has since stalled due to the diminished concerns over the expansion of digital asset adoption.  Likewise, Thailand’s Project Inthanon and Singapore’s Project Ubin and Ubin+ are testing the use case of CBDCs. 

The privately issued stablecoins, on the other hand, are viewed with caution. The general trend thus is to regulate stablecoins as a separate asset class, distinct from unbacked cryptocurrencies, with a focus on ensuring value stability, consumer protection, and financial integrity. 

Singapore has an established framework regulation for MAS-regulated stablecoins. This framework applies to single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency. Issuers must meet strict requirements, including maintaining full reserve backing with high-quality, liquid assets. They must also ensure redemption at par value and adhere to strong disclosure standards. The Philippine Peso-backed PHPC has also finished the BSP’s regulatory sandbox in June 2025. PHPC has been used for remittances but now the company behind the stablecoin, Coins.ph, is planning to expand to domestic customers. 

The Trajectory of Digital Assets in ASEAN 

ASEAN policymakers are expected to continue to develop regulatory regimes on digital assets while responding to the emerging changes in the technology. Global regulatory developments can influence ASEAN countries to accelerate their own frameworks. The recent passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) in the United States, which provides the first-ever federal legal framework for stablecoins, has gained worldwide traction.  

Nonetheless, as approximately 99% of the stablecoin market is denominated in USD, other countries are wary of the risk of unintended dollarization, which could jeopardize financial stability and the effectiveness of its monetary policy. These concerns might give a new sense of urgency to ASEAN policymakers to promote CBDCs or stablecoins pegged to local currencies. 

With necessary safeguards, ASEAN has the potential to reap enormous benefits from digital asset adoption, particularly in areas like financial inclusion and efficient cross-border payments. As the global regulatory environment on digital assets advances, business can expect to see greater clarity in ASEAN.