Cryptocurrency Fever: Should Southeast Asian Countries Cooperate on Facing Cryptocurrency Market?

Hazmi Tri Laksono, Muhammad Fuadillah Nugraha

2018

Abstract

Bitcoin frenzy since its emergence in 2009 offers both opportunities and threats to certain parties. Since bitcoin was mined and has become the market leader today, thousands of altcoins and crypto-tokens have also been created. Those cryptocurrencies are being traded actively on both unregulated and registered exchanges. This paper aims to discuss how the unregulated nature of cryptocurrency-related activities in Southeast Asia region may disrupt business, tax collection, and security while at the same time challenging the state monetary and financial authority. These disruptions require cooperation from a group of countries in order to manage them. The authors argue that cryptocurrency pose threats not only in national scale but also in regional and even global scale if it is left in grey area. The transformation of businesses, the growth of crypocurrency markets in ASEAN and its potential to be used for money laundering and/or terrorist-funding are several issues which cannot be managed only by a single nation. The complexity of cryptocurrency-related issues may only be governed by effective regional economic governance. Effectiveness of regional mechanism for multilateral and regional governance stated in Asian Development Bank working paper 2017 was used as a guideline to discuss the issue. The formation of governance by ASEAN, Republic of China, Japan, and Republic of Korea (ASEAN+3) is expected to manage cryptocurrency-related issues.

Paper Citation

in Harvard Style

Laksono H. and Nugraha M. (2018). Cryptocurrency Fever: Should Southeast Asian Countries Cooperate on Facing Cryptocurrency Market?.In Proceedings of Airlangga Conference on International Relations - ACIR, ISBN 978-989-758-493-0, pages 324-330. DOI: 10.5220/0010276603240330

in Bibtex Style

@conference{acir18,
author={Hazmi Tri Laksono and Muhammad Fuadillah Nugraha},
title={Cryptocurrency Fever: Should Southeast Asian Countries Cooperate on Facing Cryptocurrency Market?},
booktitle={Proceedings of Airlangga Conference on International Relations - ACIR,},
year={2018},
pages={324-330},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010276603240330},
isbn={978-989-758-493-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of Airlangga Conference on International Relations - ACIR,
TI - Cryptocurrency Fever: Should Southeast Asian Countries Cooperate on Facing Cryptocurrency Market?
SN - 978-989-758-493-0
AU - Laksono H.
AU - Nugraha M.
PY - 2018
SP - 324
EP - 330
DO - 10.5220/0010276603240330