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Which countries are lagging behind?
UAE and Vietnam Lead the Charge in Global Cryptocurrency Adoption
The adoption of cryptocurrencies has witnessed a significant surge globally, with the United Arab Emirates (UAE) and Vietnam emerging as pioneers in the adoption of digital assets.
Notably, recent data from Triple-A showed that approximately 30.4%, or 3 million people, of the UAE’s population own cryptocurrencies, positioning the nation as a leader in the global fintech landscape.
The second leader and the stragglers
Similarly, Vietnam has seen a notable increase in crypto involvement, with 21.2% of its population, or approximately 21 million people, taking part. involved with cryptocurrencies.
This trend in Vietnam surpasses that of Singapore, a developed nation known for its sophisticated financial landscape.
The preference for cryptocurrencies in Vietnam points to a broader trend in emerging markets where digital assets are increasingly seen as viable avenues for investment and wealth diversification.
Meanwhile, despite its financial strength, Singapore has a more conservative cryptocurrency adoption rate of 11.1%, suggesting a cautious but growing engagement with the sector.
The United States, Iran, the Philippines, Brazil, and Saudi Arabia also show significant adoption rates, highlighting the varying appeal of cryptocurrencies in different economic contexts.
About 15.6% of the U.S. population owns digital currencies, with nearly 53 million Americans participating. This commitment is supported by regulatory milestones such as the approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs).
On the other hand, countries like Iran and the Philippines have adoption rates of 13.5% and 13.4% respectively, indicating a strong inclination towards digital assets as tools for financial empowerment and education of wealth.
Global Regulatory Trends in Cryptocurrency: How Countries Are Adapting
Furthermore, as countries around the world adopt digital currency, they appear to be strengthening their respective regulatory frameworks to manage this sector.
For example, the Monetary Authority of Singapore (MAS) recently updated the law on payment services, introducing a more complete regulatory framework.
These changes include provisions relating to digital payment token (DPT) custody services, facilitating their transmission and overseeing cross-border money transfers.
The scope of these regulations also extends to transactions involving funds from outside Singapore, giving the MAS the authority to apply stringent measures to DPT service providers.
This approach aims to effectively address the risks associated with digital assets. MAS will be able to apply standards relating to anti-money laundering, countering terrorist financing, user protection and financial stability.
At the same time, MAS published guidelines which establishes consumer protection rules for entities providing DPT services, which will come into force from 4 October.
In contrast, the United States has taken a somewhat tougher stance on crypto regulations. While it recently authorized spot ETFs on Bitcoin and Ethereum, it remains a strong desire for a pro-cryptocurrency candidate to win the upcoming American electionspotentially unlocking further opportunities for digital currency in the region.
Featured image created with DALL-E, chart from TradingView