Asia tops digital currency adoption; Thailand seizes BTC miners

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A new report has placed Asia as the leading continent for digital currency adoption, with 60% of global users residing in the region, which once played catch up to North America and Europe.

The report by Foresight Ventures and Primitive Ventures confirmed Asia’s Web3 dominance as a powerhouse in shaping future trends in the ecosystem. Per the report, the region generates the largest slice of liquidity for digital assets, with its daily trading volumes exceeding the $20 billion mark.

India leads Asia’s digital currency adoption metrics by a country mile, with Indonesia and Vietnam coming in second and third place, respectively. The Philippines and Pakistan rank in fourth and fifth place with Foresight Ventures, noting that all five nations are featured in the top 10 list for the 2024 Global Crypto Adoption Index.

“Asia stands as a significant hub for crypto innovation, users, and trading markets,” Foresight Ventures co-founder Forest Bai remarked.

The report delved into the peculiarities of the Asian Web3 market, currently dominated by centralized exchanges. The duo of Binance and Upbit hold a lion’s share of Asia’s digital asset activities with a significant footprint in Asia Pacific (APAC) and the Middle East.

While regulators are working on rulebooks for investors’ protection, digital currency activity in the region is characterized by speculation. A large portion of users are active participants in meme coin trading and airdrop farming, while only a fraction are long-term “hodlers” of digital assets.

In terms of demographics, a chunk of digital currency users in Asia are young millennials and Gen Zs, with less than 10% being Gen X and Boomers.

From a regional standpoint, Indian digital currency users typically lean on Telegram Mini Bots as their Web3 gateway, while play-to-earn (P2E) games are popular among Vietnamese users. In South Korea, digital asset adoption is primarily driven by “speculative retail trading,” with institutional adoption in Hong Kong and Singapore driving adoption metrics.

The Philippines’ rise to the top of the rankings appears to be largely fuelled by digital currency-based remittances and a strong P2E gaming culture in the Southeast Asian nation.

While experts largely expected Asia to lead the adoption index, the astronomical figures surprised optimists and middle-liners alike. The Indian ecosystem, bruised by stiff government taxation, came in second in global rankings, serving as a testament to the region’s resilience.

Draconian government policies in South Korea, Thailand, and Indonesia did little to slow digital asset adoption in the region in 2024. Other regions that previously brandished a hard stance toward the asset class made a U-turn in 2024, triggering a new wave of institutional and retail investors.

Police seize nearly 1,000 BTC mining devices in Thailand

Thai police have confirmed the seizure of 996 mining rigs from a BTC mining operation fingered in the theft of $2.88 million worth of electricity.

According to a report from the Bangkok Post, local authorities conducted a coordinated raid on JIT’s premises in Chon Buri following a tip-off from an unnamed source. Police Major General Montree Theskhan disclosed that the raid led to the seizure of nearly 1,000 mining devices run on stolen electricity from the state.

The operators of the facilities had previously received authorization from regulators to mine BTC and other digital currencies. However, preliminary investigations revealed that the operators relied on stolen electricity to power their mining operators in a brazen scheme.

Theskhan noted that during the day, the operator used official power meters for operations but switched to “modified” meters for mining at night to circumvent random inspections from officials. While it remains unclear when the illegal operations began, authorities say JIT’s scheme stole nearly $3 million worth of electricity at current rates.

Local police identified solar panels at the facilities but disclosed that the panels were not deployed for mining operations.

Preliminary reports have yet to confirm the arrest of individuals linked to the electricity theft, apart from the seizure of mining equipment and closure of premises. Other local news outlets report that the Crime Suppression Division is actively seeking court warrants to arrest principal members behind the operations.

Mining BTC is a power-intensive endeavor requiring a ton of computing power, with one study noting that mining 1BTC will require up to 155,000 kilowatt hours (kWh). With electricity rates at sky-high levels and renewable energy requiring steep investments, mining enterprises are actively migrating to regions with cheap electricity.

However, regions with affordable electricity ramp up the tax burden for miners, forcing a cross-section of industry players to cut corners to remain afloat.

A streak of high-profile busts

Authorities across Southeast Asia are on a red-hot streak, busting illegal mining operations across the region. Brunei’s national police shuttered the operations of two mining operators in the country, with Malaysia toeing the same path against unlicensed BTC miners.

Between 2018 and 2023, Malaysia lost nearly $800 million worth of electricity to illegal BTC miners, forcing sterner enforcement actions against the industry. The scourge extends to Europe, with Ukrainian and Russian police busting several illegal BTC mining operations in several regions.

Watch: The Philippines is at the forefront of blockchain tech adoption