Entrepreneurs to Discuss Blockchain Investment Opportunities at Korea Investment Week 2023

Recent weeks have seen a positive policy shift in Pakistan with regard to digital assets and blockchain and that initiative has gathered further momentum with the appointment of a special assistant on blockchain and crypto to the Pakistani prime minister and the allocation of 2,000 MW of surplus electricity to Bitcoin mining and AI data centers.Photo by Abuzar Xheikh on UnsplashOn May 26, the Pakistan Observer, an English language daily newspaper, reported that Bilal bin Saqib has been appointed to serve as a special assistant on blockchain and crypto matters to Pakistani Prime Minister Shehbaz Sharif. Forbes ‘30 under 30’ social entrepreneurIn this role, Saqib assumes the status of a minister of state under Rule 4(6) of the Rules of Business, 1973, with the appointment effective immediately. Saqib had been featured by Forbes through its “30 under 30” list of social entrepreneurs in Asia in 2020. He is the founder of Tayaba.org, a non-governmental organization (NGO) focused on the provision of clean drinking water to vulnerable communities in Pakistan. Saqib came to prominence in the crypto sector earlier this year when he was appointed CEO of the newly formed Pakistan Crypto Council (PCC), an agency established to promote blockchain technology and digital assets within the South Asian country. In April he was added by World Liberty Financial, a crypto project connected with the family of U.S. President Donald Trump, as an advisor. Earlier this month, Pakistan’s Ministry of Finance gave the go-ahead for the establishment of the Pakistan Digital Assets Authority (PDAA), a body that will be responsible for the implementation of regulations governing the crypto and blockchain sector.  Utilizing surplus energyAt the time, one area of focus that had been highlighted in the announcement of the establishment of the PDAA was a desire to make better use of Pakistan’s surplus energy. The country runs an annual average surplus of 4,000 megawatts. A report by 24 Digital on May 25 indicated that action has already been taken in this regard. It outlined that Pakistan has allocated 2,000 megawatts of surplus electricity for the exclusive use of operators of AI data centers and Bitcoin mining facilities.  This plan is being rolled out in phases. The first phase makes surplus energy available to these operators. Phase 2 will focus on enabling crypto mining operators to avail of renewable energy to power their facilities, in an effort to develop the sector in Pakistan in an environmentally responsible manner. According to the Ministry of Finance, interest has already been expressed by international operators in the crypto mining and AI data center sectors. A number of international firms are understood to have visited the country in an effort to explore potential collaboration opportunities.  Earlier this month, Saqib claimed on social media that Pakistan “is moving at crypto speed.” He made the case that the country is a breeding ground for crypto innovation, citing the opportunity to exploit surplus electricity via crypto mining and the potential for crypto adoption given a $36 billion remittance market, millions of unbanked citizens and 64% of the population under 30.

Report by Xangle and Tiger Research Explores Indonesia’s Web3 PotentialIn partnership with South Korean crypto data platform Xangle, Web3 consulting firm Tiger Research has released a report focusing on the Web3 market in Indonesia. This collaborative project also featured contributions from Jakarta-based blockchain game provider Avarik Saga and Hong Kong-headquartered metaverse company Animoca Brands.In the process of crafting this paper, teams from Tiger Research, Xangle, Avarik Saga, and Animoca Brands spent a week in Indonesia, conducting interviews with local experts.Photo by Nick Agus Arya on UnsplashPositive factorsThe report assesses Indonesia’s Web3 market as having significant potential. It highlights factors such as the country’s status as the world’s fourth-largest population, a youthful demographic with a median age of 30, political stability, and favorable policies towards Web3 technologies. The Indonesian government has adopted a favorable approach to the Web3 industry, providing a range of incentives to boost the growth of the Web3 gaming sector. Additionally, they have taken the initiative to establish a dedicated committee for the blockchain sector within the Indonesia Financial Services Authority (OJK).Crypto exchanges driving growthAs per the report, the Indonesian market is primarily propelled by cryptocurrency exchanges, with over 30 exchanges currently in operation. These exchanges serve a customer base of approximately 10 million individuals, which accounts for around 4% of the country’s population. This is comparable to the number of investors on the Indonesia stock exchange.Several challengesMeanwhile, the paper also highlighted several areas where the world’s largest archipelagic state faces challenges. One of these challenges is its non-fungible token (NFT) market, which has seen a consistent decline in recent months, hitting an all-time low. It was found that most individuals prefer global NFT marketplaces over local ones. Furthermore, concerning the development of the Web3 ecosystem, the shortage of blockchain developers has prompted startups to seek development services overseas.

Thailand’s Incoming Prime Minister Signals Crypto EmbraceIn a recent parliamentary decision on August 22, real estate magnate Srettha Thavisin emerged as Thailand’s forthcoming Prime Minister. Thavisin, acclaimed for his prior role as the CEO of Sansiri — one of Thailand’s major real estate developers — has a history entwined with the cryptocurrency sector, hinting at potential ramifications for the nation’s crypto landscape.Photo by Markus Winkler on UnsplashParliamentary selection winThe appointment came under the banner of the Pheu Thai Party, with Thavisin securing 482 votes out of 747 in the parliamentary endorsement.Thavisin’s ascent to power could potentially herald a significant shift in Thailand’s approach to cryptocurrencies, leveraging his involvement with Sansiri’s foray into the digital asset domain. Departing from his role as Sansiri’s CEO in April, Thavisin relinquished his 4.4% stake in the company, setting the stage for him to pursue a career in politics.Crypto firm investmentSansiri, under Thavisin’s leadership, undertook active participation in the country’s digital asset arena. Notably, in 2021, the company participated in a substantial $225 million fundraising round for XSpring Capital, a crypto-friendly investment management firm. This strategic partnership paved the way for XSpring to launch a fully integrated cryptocurrency trading platform in 2022, with aspirations to establish a presence among the top crypto exchange companies by 2025.Thavisin’s impact on the crypto sector goes beyond investment. His company also introduced the “SiriHub Token” via XSpring in 2022, presenting a real estate-backed initial coin offering (ICO) that extended 240 million tokens to the public. This duality of involvement from crypto firm investment to token issuance, demonstrates that the new Thai premier has not been afraid to get involved with crypto innovation at an early stage.Crypto airdrop proposalIt appears that Thavisin’s affinity for cryptocurrency transcends corporate endeavors, as his political affiliation with the Pheu Thai Party, which he joined in November 2022, introduced a novel proposition. The party proposed disbursing 10,000 Thai baht (approximately $300) to citizens, executed through digital currency transactions. The synergy between his cryptocurrency background and this proposal raises questions about the potential influence of his past on Thailand’s future crypto policies.As Thavisin’s administration prepares to assume office by the end of September, the extent to which his crypto engagement shapes the nation’s policies remains a topic of speculation. However, the confluence of his real estate expertise and cryptocurrency ventures offers a unique blend of experiences that might foster innovative approaches.Notably, Thavisin’s journey isn’t the sole instance of Thailand’s government engaging with the crypto industry. Earlier in 2023, Thailand’s cabinet introduced tax breaks for companies issuing investment tokens. These measures, announced in March, aim to generate 128 billion baht ($3.7 billion) from investment token offerings over the next two years.Political importanceThavisin’s perceived embrace of cryptocurrency in Thailand comes at a time when crypto and blockchain innovation is being supported by political candidates in multiple jurisdictions. In the United States, the Republican Party is holding a debate on Wednesday between its eight candidates for the presidential nomination, with several of them being pro-crypto.On the Democratic Party side, Robert F. Kennedy is pro-bitcoin, having recently stated that bitcoin is an exercise in extending civil liberty. Meanwhile, in Argentina, Javier Milei, a libertarian pro-bitcoin candidate, topped the poll in the country’s recent presidential primary.