The West needs to lose that view of superiority when it comes to crypto regulation. Does an “all of the above” blanket approach ever cut it, particularly for Southeast Asia’s colorful, evolving, expanding creative economies? I don't think so. In fact, I know it doesn't. If we are serious about empowering Asian creators, we should look east—far east—to Hong Kong for a regulatory model that really gives power to the creators.

Forgotten Voices Need A Seat

The EU, the UK, the US – they’re all sprinting to regulate stablecoins. Though their intentions are surely good, wanting to protect consumers and ensure financial stability. Their solutions are usually tailored to their own highly developed financial markets. Think of it like this: they're building highways when we desperately need dirt roads to reach remote villages. We, the people of Southeast Asia, want and need an alternative trajectory – a new path. Our artists, musicians, and digital creators—overwhelmingly women and people of color—are going unacknowledged. To date, they are the lost voices in this global regulatory sprint. Now their potential is being cut off by regulations intended for Wall Street, not for our streets. The EU’s MiCA, while well-intentioned, is so far-reaching that it may crush innovation before it even has a chance to bloom. As much as the UK wants to position itself as a hub for digital assets, it remains hamstrung by a legislative and regulatory approach that favors incumbents.

These Western models do not take into account the unique challenges and opportunities found in developing economies. They set extremely high requirements that are just not realistic for small scale creators and startups across Southeast Asia. It’s akin to requiring a street artist to meet the same requirements as a transnational, multi-billion dollar company.

HKD-Tokens: A Gateway For Creators

Hong Kong is taking a different tack. Its Stablecoins Bill, with its focus on HKD-referenced tokens, provides a much more practical and attainable route. Why is this important? This innovative solution creates a bridge between the traditional financial system and the digital world. What makes this effort unique, though, is how specifically it’s tailored to the needs of the region.

  • Cross-border payments become easier and cheaper. Imagine a Filipino artist selling their work online and receiving payments in a stablecoin pegged to the HKD. It's faster, more efficient, and less expensive than traditional methods.
  • Access to DeFi opportunities opens up. Southeast Asian creators can participate in decentralized finance (DeFi) platforms, earning interest on their holdings and accessing new funding opportunities.
  • Monetization becomes more accessible. Stablecoins enable creators to directly monetize their work, bypassing traditional intermediaries and keeping a larger share of their earnings.

HK’s focus on AML/CFT (Anti-Money Laundering and Counter-Terrorist Financing) is even more fitting for the area. It’s not as deep as the EU/US, but it’s enough to jumpstart the adoption.

This isn’t only improving convenience – this is paving the way for the next generation of Asian creators. But it’s about providing them the tools they need to succeed and thrive in the digital age. It’s not just about creating a more inclusive local digital economy.

Call to Action: Build Our Future

We cannot afford to wait to allow the West to decide the future of crypto regulation. We need to take action. We need to advocate for regulatory structures – like those seen in a smart city Hong Kong – to make this happen. Let’s adapt them to fit the specific context of Southeast Asia.

Let’s develop a future where Southeast Asia is not only a consumer of technology, but aspires to be in the driver’s seat from an innovation standpoint. Let’s work together to build a crypto ecosystem that truly represents our specific cultural and economic context. Here’s to helping our artists and creators succeed in the digital era. The time to act is now. Are you with me?

  1. Collaborate and share knowledge with Hong Kong stakeholders. Learn from their experience and adapt their best practices to your own local context.
  2. Advocate for regulatory frameworks that are pro-innovation and pro-creator. Don't let overly restrictive regulations stifle the growth of the creative economy.
  3. Embrace the potential of HKD-referenced tokens and other stablecoin solutions. These can be powerful tools for empowering Asian creators and fostering financial inclusion.

I understand this is challenging and daunting, we have to begin the process somewhere.

I know it is hard and difficult, but we need to start somewhere.