APO, NPCC Collaborate to Elevate Productivity in Asia with Blockchain Training on E-Government Applications

APO, NPCC Collaborate to Elevate Productivity in Asia with Blockchain Training on E-Government Applications

PHNOM PENH: The Asian Productivity Organization (APO) and the National Productivity Center (NPCC) of MISTI are co-hosting a training program on Blockchain Technology Application in e-Government from August 5-9, 2024, in Phnom Penh, aimed at enhancing productivity in the Asian region.

The event, presided over by H.E. Phork Sovanrith, MISTI’s Secretary of State and APO Director for Cambodia, brought together productivity representatives from various countries including Cambodia, India, Indonesia, Malaysia, Pakistan, the Philippines, Sri Lanka, Thailand, Turkey, and Vietnam.

“Blockchain technology has emerged as a transformative force in various sectors, including e-government initiatives in Cambodia. Its application can significantly enhance transparency, efficiency, and security in governmental processes,” said H.E. Phork Sovanrith.

Throughout the program, productivity representatives from the region will explore the practical applications of blockchain-driven solutions in e-governance systems. The objective is to help them grasp the importance of blockchain architecture in advancing e-government initiatives and improving service delivery by public-sector organizations, ultimately enhancing the efficiency and effectiveness of e-government programs through the integration of blockchain technology.

The Asian Productivity Organization promotes productivity in the Asia-Pacific region through collaborative activities, capacity building, and knowledge sharing to enhance economic growth and development.

 

Source: https://eacnews.asia/home/details/31596

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Decoding the diverse regulatory journeys in Southeast Asia

Decoding the diverse regulatory journeys in Southeast Asia

Insights

Which Southeast Asian country is considered one of the most crypto-friendly jurisdictions, and what regulatory framework governs crypto activities in that country?

Anndy Lian considers Singapore to be as one of the most crypto-friendly jurisdictions. The Payment Services Act, effective since January 2020, regulates crypto service providers as licensed payment institutions, ensuring compliance with anti-money laundering (AML) and consumer protection rules.

What are the main regulatory challenges and opportunities posed by the diverse crypto landscape in Southeast Asia?

Anndy Lian mentioned that the lack of uniformity in crypto regulations across Southeast Asian countries creates challenges such as regulatory uncertainty and inconsistency. However, it also presents opportunities for regulatory arbitrage, where the crypto industry seeks favorable regulatory environments for their activities.

In terms of crypto regulations, how does Indonesia differ from other Southeast Asian countries, and what has been the government's stance on crypto use?

Indonesia has a more restrictive and uncertain regulatory environment. While the government has banned the use of crypto as a means of payment, it has also recognized crypto as a tradable commodity on futures exchanges, authorizing exchanges like the Indonesia Commodity and Derivatives Exchange (ICDX) and the Jakarta Futures Exchange (JFX) to offer crypto futures contracts.

What potential trends are anticipated in Southeast Asia's crypto landscape in 2024, especially in countries like Indonesia and Vietnam?

Anndy Lian anticipated trends in 2024 include the evolution of regulatory frameworks, increased institutional engagement, the rise of Central Bank Digital Currencies (CBDCs), continued growth in DeFi and NFTs, discussions on interoperability and cross-border collaboration, educational initiatives, technological advancements, and market consolidation and maturation. These trends provide a framework for potential developments in the Southeast Asian crypto space.

 

Southeast Asia (SEA), a region with a population of nearly 700 million and a fast-growing digital economy, has become a hotbed for crypto innovation and adoption in recent years. However, the regulatory landscape for crypto in the region is diverse and dynamic, with different countries adopting different approaches and policies.

In this article, we will examine the current state of crypto regulations in Southeast Asia, the challenges and opportunities they pose for the crypto industry and users, and regulatory trends anticipated to gain momentum in 2024 in the region.

The state of crypto regulations in SEA

More than 600 crypto or blockchain companies are now headquartered in SEA, and the region has seen almost $1 billion in funding for crypto, blockchain and web3 startups in 2023 to date. The report also shows that crypto adoption rates in SEA averaged 3.56% in 2021, but Singapore stood out with nearly 10% of its population owning crypto, ahead of the U.S. at 8.3%.

However, the regulatory environment for crypto in SEA is not uniform or stable. Different countries have different levels of openness and maturity in regulating crypto, and some have changed their policies over time. Here is a brief overview of the crypto regulations in some of the major Southeast Asian countries:

  • Singapore: Singapore is widely regarded as one of the most crypto-friendly jurisdictions in the world, with a clear and comprehensive regulatory framework for crypto activities. The Payment Services Act, which came into effect in January 2020, regulates crypto service providers as licensed payment institutions, and requires them to comply with anti-money laundering (AML), counter-terrorism financing (CTF), and consumer protection rules. The Monetary Authority of Singapore (MAS) also oversees the offering and trading of crypto assets that are deemed as securities or derivatives under the Securities and Futures Act. Singapore has also introduced tax guidelines and sandbox schemes for crypto businesses and investors, and has fostered a vibrant crypto ecosystem with the support of industry associations, research institutes, and innovation hubs.
  • Thailand: Thailand is another country that has adopted a proactive and progressive approach to crypto regulation, with the aim of promoting innovation and protecting investors. The Thai Securities and Exchange Commission (SEC) is the main regulator of crypto activities in the country, and has issued licenses for crypto exchanges, brokers, dealers, and fund managers since 2018/19. The SEC also regulates the issuance and trading of digital tokens that are classified as securities or investment contracts under the Digital Asset Businesses Decree. The SEC has also issued guidelines and rules for initial coin offerings (ICOs), security token offerings (STOs), decentralised finance (DeFi), non-fungible tokens (NFTs), and stablecoins, and has collaborated with other regulators and stakeholders to develop the crypto industry and market.
  • Malaysia: Malaysia has a similar regulatory framework to Thailand, with the Securities Commission (SC) as the main regulator of crypto activities in the country. The SC requires crypto service providers to obtain licenses as recognised market operators, and regulates the offering and trading of digital tokens that are considered as securities or investment contracts under the Capital Markets and Services Act. The SC has also issued guidelines and rules for ICOs, STOs, DeFi, NFTs, and stablecoins, and has established a regulatory sandbox for crypto innovation. The SC works closely with the Central Bank of Malaysia (BNM) to ensure the stability and integrity of the crypto market and the financial system.
  • Indonesia: Indonesia has a more restrictive and uncertain regulatory environment for crypto, with the government and the regulators sending mixed signals to the crypto industry and users. The BNM has banned the use of crypto as a means of payment and has warned the public of the risks and legal consequences of using crypto. However, the BNM has also acknowledged that crypto is a commodity that can be traded on futures exchanges, and has authorised the Indonesia Commodity and Derivatives Exchange (ICDX) and the Jakarta Futures Exchange (JFX) to offer crypto futures contracts since 2019. The Indonesian Trade Ministry has also issued regulations for crypto asset trading, and requires crypto service providers to register with the Commodity Futures Trading Regulatory Agency (Bappebti) and comply with AML, CTF, and consumer protection rules.
  • Philippines: The Philippines has a more balanced and pragmatic regulatory approach to crypto, with the government and the regulators recognising the potential and challenges of crypto. The Bangko Sentral ng Pilipinas (BSP) regulates crypto service providers as remittance and transfer companies, and requires them to obtain licenses and comply with AML, CTF, and consumer protection rules. The BSP has also issued guidelines for the issuance and exchange of digital tokens that are considered as securities or investment contracts under the Securities Regulation Code. The BSP collaborates with the Securities and Exchange Commission (SEC) and the Cagayan Economic Zone Authority (CEZA) to oversee and develop the crypto industry and market.
  • Vietnam: Vietnam has a more hostile and ambiguous regulatory stance on crypto, with the government and the regulators banning and discouraging the use and trading of crypto. The State Bank of Vietnam (SBV) has prohibited the use of crypto as a means of payment since 2017, and has declared that crypto is not a legal tender or a recognised asset in the country . The SBV has also warned the public of the risks and legal consequences of using and trading crypto, and has instructed financial institutions and service providers to refrain from engaging in crypto activities. However, the SBV has also indicated that it is studying and researching the possibility of issuing a central bank digital currency (CBDC) in the future.

The challenges and opportunities of crypto regulations in SEA

The diverse and dynamic regulatory landscape for crypto in SEA poses both challenges and opportunities for the crypto industry and users in the region. Some of the main challenges and opportunities are:

  • Regulatory uncertainty and inconsistency: The lack of clarity and coherence in crypto regulations across different countries and jurisdictions in SEA creates confusion and uncertainty for the crypto industry and users, and hinders the cross-border integration and interoperability of crypto services and products.
  • Regulatory arbitrage and competition: The variation and disparity in crypto regulations across different countries and jurisdictions in SEA also creates opportunities and incentives for the crypto industry and users to seek and exploit the most favorable and advantageous regulatory environments for their crypto activities.
  • Regulatory collaboration and coordination: The complexity and diversity of crypto regulations in SEA also requires and encourages the collaboration and coordination among different regulators and stakeholders within and across different countries and jurisdictions in the region.

8 regulatory trends in SEA in 2024

Predicting trends for 2024 in SEA’s crypto landscape involves several considerations based on the existing regulatory environment, market trends, and technological advancements. Here are potential trends to look out for:

  1. Evolution of Regulatory Frameworks: Expect continued evolution and refinement of crypto regulations in SEA. Some countries might amend or introduce new legislation to provide more clarity and structure, aiming to balance innovation with investor protection and financial stability. Watch for updates on licensing requirements, compliance standards, and tax guidelines, especially in countries like Indonesia and Vietnam, which have shown mixed signals and could undergo significant regulatory changes.
  2. Increased Institutional Engagement: Anticipate greater involvement from institutional investors and traditional financial institutions in the Southeast Asian crypto space. As regulatory clarity improves and crypto markets mature, institutions might explore avenues for investment and integration of digital assets into their portfolios or services.
  3. Rise of CBDCs: Several Southeast Asian countries, including Indonesia and Vietnam, have shown interest in exploring CBDCs. Keep an eye on potential pilot projects or announcements regarding the development and implementation of digital versions of national currencies, which could impact the broader crypto ecosystem in the region.
  4. DeFi and NFTs: Continued growth and innovation within the DeFi and NFT sectors are expected. Countries like Thailand and the Philippines have shown interest in regulating and fostering these segments. Look for initiatives promoting responsible DeFi practices and guidelines for NFT markets, possibly indicating a more structured approach by regulatory bodies.
  5. Interoperability and Cross-Border Collaboration: With varying regulations across Southeast Asian countries, expect discussions on interoperability and cross-border collaboration to gain momentum. Efforts to harmonise certain aspects of regulations or establish frameworks for smoother cross-border crypto transactions might begin to surface.
  6. Education and Awareness Campaigns: Governments and regulatory bodies may intensify efforts to educate the public about the risks and benefits of crypto. Initiatives aimed at increasing financial literacy and awareness about safe crypto practices could emerge, especially in countries where regulatory stances are less clear.
  7. Technological Advancements and Innovation: Keep an eye on technological advancements, such as Layer 2 scaling solutions, privacy enhancements, and sustainable blockchain developments. SEA might witness increased adoption of eco-friendly crypto solutions and technologies focused on scalability and user privacy.
  8. Market Consolidation and Maturation: The crypto market in SEA may undergo consolidation as stronger regulations prompt weaker or non-compliant entities to exit. This could lead to a more mature and stable market environment, attracting serious players and fostering investor trust.

These trends are speculative and subject to changes influenced by geopolitical factors, technological breakthroughs, global market trends, and regulatory shifts. In my humble opinion, they provide a framework for potential developments in the Southeast Asian crypto space in 2024.

Conclusion

SEA is a good crypto breeding ground, with a large and growing crypto market and industry, and a diverse and dynamic regulatory landscape. While Singapore leads with a robust and transparent regulatory framework, others like Indonesia and Vietnam grapple with uncertainty, fostering a complex environment for industry players and users.

Navigating this intricate regulatory landscape requires a proactive stance from crypto stakeholders. Compliance with evolving regulations, obtaining requisite licenses, and aligning with diverse jurisdictional standards are crucial. Simultaneously, refraining from unlawful activities and staying updated with accurate information become paramount. Collaborative efforts among regulators and stakeholders across borders could streamline regulations and foster a more coherent environment for the burgeoning crypto industry.

Looking ahead to 2024, several potential trends loom on the horizon, including regulatory evolution, increased institutional engagement, the rise of CBDCs, emphasis on DeFi and NFTs, interoperability discussions, educational initiatives, technological advancements, and market maturation. These anticipated trends offer a roadmap for potential developments. Their realisation depends on multifaceted factors such as global market dynamics, technological progressions, geopolitical shifts, and regulatory reforms. Despite uncertainties, these projections serve as guiding principles for stakeholders navigating the complex terrain of SEA’s crypto journey in the upcoming years.

 

Source: https://ciosea.economictimes.indiatimes.com/blog/a-tale-of-two-technologies-the-intricacies-of-data-and-ai/106511920

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Why Southeast Asia Needs to Collectively Harness AI

Why Southeast Asia Needs to Collectively Harness AI

Artificial intelligence is revolutionizing the global landscape, presenting both new possibilities and challenges across multiple sectors. The swift adoption of AI technology brings to the fore critical ethical, societal, and legal considerations that necessitate thoughtful regulation. In the culturally, economically, and politically varied terrain of Southeast Asia, the development of AI governance is a multifaceted and pressing endeavor requiring collaboration among diverse stakeholders.

As a vibrant and burgeoning region, Southeast Asia boasts over 650 million inhabitants and a collective GDP of $3.2 trillion. The region has rapidly adopted digital innovation, a trend that the pandemic has significantly bolstered, escalating the demand for, and provision of, digital services and solutions. AI stands at the forefront of this technological leap, offering enhanced capabilities and efficiencies across numerous fields, including e-commerce, financial technology, healthcare, education, agriculture, and the development of intelligent urban infrastructure.

According to a report, AI could significantly boost Southeast Asia’s economy, potentially increasing GDP by 10 to 18 percent by 2030, which translates to an increase of nearly $1 trillion. Further research by IDC underscores AI’s pivotal role in regional business, with 83% of Southeast Asian business leaders affirming its critical importance for competitiveness. Additionally, AI is recognized as a catalyst for societal benefits, with 86% of business leaders and 77% of workers in the region confident that AI will help overcome social challenges and enhance citizens’ quality of life.

Nonetheless, several obstacles impede the full realization of AI’s potential in Southeast Asia. These barriers include a scarcity of AI expertise and talent, insufficient awareness and trust in AI, subpar data quality and governance, and inadequate infrastructure and digital connectivity. Consistent among various studies is the consensus on the necessity for a robust, cohesive AI regulatory framework. Such a framework should tackle AI’s ethical, social, and legal challenges, including issues related to privacy, security, accountability, transparency, fairness, and human rights.

Regulating AI is a nuanced task that encompasses multiple aspects, including technical, legal, ethical, social, and economic dimensions. The approach to AI regulation must consider the varying contexts, purposes, and impacts of AI applications, as well as the differing values, norms, and interests of stakeholders like governments, businesses, civil society, academia, and end-users. Developing AI regulations calls for a measured approach that safeguards AI’s safety, security, and trustworthiness while promoting its innovation, competitive edge, and inclusivity.

Formulating AI regulations in Southeast Asia offers distinct challenges and opportunities. A primary challenge is the lack of a coordinated vision for AI development and governance, leading to potential inconsistencies and disjointed efforts among the region’s nations.

The discrepancy between rapid AI advancements and the slower development of regulations may cause uncertainty and inefficiency. Policymakers and regulators also face a delicate balance between fostering AI innovation and the imperative for regulation, which may lead to complex trade-offs.

Addressing the differing priorities and values of stakeholders on AI ethics, including privacy and human rights, adds to the challenge. Moreover, tackling AI’s transnational elements, such as data sharing and enforcement across borders, adds complexity.

Opportunities are present as well. Regional collaboration could capitalize on collective strengths, resources, and knowledge, promoting shared best practices. Engaging stakeholders in the regulatory process can lend greater legitimacy and effectiveness to AI policies. Additionally, this engagement offers a chance to pilot innovative regulatory approaches like co-regulation or soft law.

Southeast Asia has the potential to lead in AI governance, setting a precedent for other developing regions and contributing a valuable perspective to the global AI discourse.

Given the intricate landscape of AI regulation in Southeast Asia, it’s essential for nations and stakeholders within the region to collaboratively forge a unified and coherent vision and strategy for the development and governance of AI. This shared direction should emphasize a human-centric and value-based regulatory approach, placing human interests, rights, and dignity at the heart of AI’s design, development, and application. It’s vital that AI supports and enhances the values and principles prevalent in Southeast Asian societies, including diversity, inclusivity, and sustainability.

The regulatory framework must also be risk-based and context-specific, assessing the potential and actual risks associated with AI applications and customizing regulations to fit the intended use and potential impact of AI, distinguishing between varying levels of risk.

A comprehensive strategy is necessary, one that spans the entire AI lifecycle from data collection to deployment and monitoring. This strategy should ensure that all AI-related policies and regulations, such as data protection and human rights, are in sync and coordinated.

Incorporating a collaborative and participatory methodology in AI regulation is also important. This means actively involving stakeholders from government, business, civil society, academia, and the user community in the development, implementation, and review of AI policies, fostering a culture of trust, transparency, and accountability.

Lastly, an adaptable and evolutionary approach to AI regulation is crucial, one that continuously monitors and assesses the effectiveness of AI policies and regulations and is flexible enough to update and revise them in response to the fast-paced changes and advancements in AI technology and applications. By adopting such a vision and strategy, Southeast Asia can secure AI’s safety, trustworthiness, and beneficial growth, while also nurturing innovation, competitiveness, and inclusivity.

Southeast Asia’s vibrant growth is increasingly powered by artificial intelligence, which brings both opportunities for expansion and complex ethical considerations. As the region becomes a formidable economic power in a tech-driven world, the development of thorough AI regulations is crucial.

The rise of AI in Southeast Asia heralds transformative prospects, driving sectors forward and hinting at significant economic benefits. However, the region faces challenges like skill gaps, infrastructural deficits, and governance issues that hinder the full benefits of AI, highlighting the need for comprehensive regulations.

Regulating AI in this dynamic region involves navigating a complex web of social, economic, and ethical factors. While the lack of consistent vision among nations, the mismatch between rapid innovation and slow regulatory response, and varied interests among stakeholders add layers of difficulty, these challenges also open doors to collaborative and innovative regulatory approaches.

The path ahead calls for a unified effort to create a regulatory environment that prioritizes human values and is flexible enough to adapt to new developments. By fostering a framework that is rooted in human welfare, context-sensitive risk management, thorough oversight, collective engagement, and responsive governance, Southeast Asia can establish a robust and forward-looking AI governance structure.

Regulating artificial intelligence in Southeast Asia transcends routine compliance; it represents a collaborative venture to maximize the benefits of AI while protecting societal norms and individual freedoms. This collective effort by Southeast Asian countries to tackle the intricacies of AI regulation is not just about ensuring responsible and ethical use but also about establishing the region as a leader in the global discourse on AI governance.

As Southeast Asia progresses, the impact of its collaborative approach to AI regulation will resonate beyond its borders. This initiative is symbolic, showcasing a commitment to balancing technological innovation with ethical standards. It is reshaping the narrative of technological progress to one that aligns with the well-being of society. Through these concerted efforts, Southeast Asia is crafting a story of transformation, one where advances in technology are in step with the enrichment of our human experience.

 

Source: https://intpolicydigest.org/why-southeast-asia-needs-to-collectively-harness-ai/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j