Policy and Regulatory Challenges of Distributed Ledger Technology and Digital Assets in Asia

Abstract

Abstract Since the launch of Bitcoin in 2009, cryptocurrencies and their underlying blockchain technology have risen to global attention. It is now clear Bitcoin and a number of other cryptocurrencies were the focus of one of the largest speculative bubbles in history. This chapter explores blockchain, cryptocurrencies and Initial Coin Offerings (ICOs), as well as policy and regulatory responses in Asia. It demystifies key aspects of blockchain systems, while also disentangling concepts that are often (incorrectly) used interchangeably, such as distributed ledgers and blockchains. The chapter provides data on total capital raised through ICOs and analyzes the distribution of ICOs by country and region. Based on this framework, it conducts a comprehensive analysis of regulatory statements and disparate policy approaches in Asian countries toward digital assets, focusing on cryptocurrencies, blockchain, and ICOs.