A Blockdaemon executive anticipates that small and medium-sized enterprises (SMEs) will soon adopt blockchain technology in Asia-Pacific.
Blockchain technology will eventually reach smaller companies as it develops in the APAC region, according to Andrew Vranjes, the director of international and vice president at blockchain infrastructure provider Blockdaemon, in an interview with Cointelegraph. He elaborated:
“As blockchain solutions become more mature and scalable, adoption will expand beyond multinational corporations to include small and medium-sized enterprises (SMEs) that play a critical role in the APAC supply chain.”
Vranjes asserts that the APAC region has been proactive and supportive of blockchain technology in terms of regulations.
APAC takes proactive measures to investigate blockchain technology
Singapore and Japan are exploring and regulating blockchain technology, according to Vranjes. According to the executive, public sector blockchain initiatives, regulatory sandboxes, and supportive policies promote institutional participation. He elaborated:
“The Monetary Authority of Singapore (MAS) has been a global leader in fostering fintech innovation, and Japan’s regulatory clarity around crypto assets has made it a hub for blockchain firms.”
Henley & Partners conducted a study that ranked Singapore as the most prominent country regarding crypto adoption. According to the report, Singapore scored high in infrastructure adoption, regulations, and economic factors.
In the interim, Japan has been attempting to stimulate its local Web3 industry by enacting tax reforms that are advantageous to entrepreneurs. Takeru Saito, Japan’s minister of economy, commerce, and industry, said he would attract businesses and developers worldwide to the local Web3 scene by offering favorable tax incentives.
Obstacles to blockchain adoption within institutions
Although numerous institutions are interested in incorporating blockchain technology, Vranjes thinks obstacles prevent specific organizations from implementing blockchain solutions. This encompasses tax regulations. He elaborated:
“The treatment of cryptocurrencies and digital assets for tax purposes remains unclear in many jurisdictions. Reporting on capital gains, trading profits, and other taxable events involving digital assets presents complexities for institutions, as there is often no clear guidance.”
Furthermore, the executive stated that the absence of consistent regulations regarding digital assets and blockchain technology is one of the most significant obstacles.
Vranjes noted that the rules regarding crypto, tokenization, data privacy, and smart contracts differ among countries, even those within the same region.
“These challenges are primarily the result of the rapidly changing regulatory landscape and blockchain’s decentralized, cross-border nature,” he continued.
