In May, the Bitcoin crash left many investors reeling, with the intense selling-off leading to more than a 50% drop from its highs in April. Yet, as has been the case since the birth of Bitcoin, the cryptocurrency eventually recovers.
Some of the chief concerns surrounding cryptocurrency worldwide include fears about regulatory oversight, environmental impact, questions about its authenticity and viability and crackdowns by governments, such as China. For Bitcoin startups in Southeast Asia, there are a few issues to resolve, with new reports showing that the currency is at a two-week low because of China’s onslaught on crypto mining.
We look at the 5 emerging wealthtech startups in Southeast Asia
Emerging wealthtech companies in Southeast Asia have no choice but to deal with these challenges presented by the recent and subsequent Bitcoin problems. Here’s a breakdown of how key regional players are operating under the circumstances.
Hodlnaut is a fintech company started in Singapore in 2019 to help crypto investors boost their assets. The company grows the customer’s account by loaning their Bitcoin and paying them part of the interest from the loan repayment.
Even when there’s a market crash, the customer’s account is safe because the company assumes all financial risk. This approach gives investors the stability they need to play in the Bitcoin world.
Hodlnaut recently announces a new feature that allows customers to trade, swap and earn interest on various asset pairs. The token swap feature gives users greater control over their portfolios and enhances their experience on the platform.
Bitcoin Indonesia is an online trading marketplace started in 2014 to buy and sell digital crypto assets. Users can trade in Bitcoin or exchange them for Indonesian Rupiahs. The platform offers an easy-to-use interface for depositing, buying, selling and storing money in the online wallet.
The company encourages customers to be careful when investing or trading Bitcoin due to the volatility of cryptocurrencies. They see Bitcoin as a long-term digital investment similar to gold in the stock market. Since they are an exchange site, market crashes don’t hurt them as severely since users continue trading on the platforms.
Luno (previously known as BitX)
BitX started in 2013 with the goal of making the financial system better for everyone through the power of cryptocurrency. In 2017, they rebranded and chose the name Luno. They believed the new brand reflected their objectives and the potential for Bitcoin to give people equal access to the economic system.
The company has offices in Southeast Asia in countries such as Singapore and Indonesia. They also have offices in South Africa, Nigeria, the United Kingdom and Australia. This global element of their business ties their fate to the success of cryptocurrencies.
Luno allows users to store, trade or buy goods and services using Bitcoin. Their app has a feature for repeat purchases, whereby the user can set a schedule in which the app buys crypto at a certain date every month.
While investing in Bitcoin can be risky in the short term, the company believes customers can benefit by holding it as a long-term investment. As a result, market crashes will not severely hurt a user’s portfolio.
CoinPip is a Singaporean company that started its operations in 2014. The startup was growing steadily before suspending operations in 2020 due to government regulations.
The company had created a platform for payments and money transfer services before new laws were enacted to manage the cryptocurrency industry. The country passed the Singapore Payment Services Act to regulate the sector and prevent money laundering and other financial crimes. Users could send money to their loved ones, and businesses could pay their employees using the CoinPip wallet.
Since their return is still unknown, some of the recent unstable movements of the crypto assets have not affected them.
Coins.ph is an exchange platform for digital currencies. It started in the Philippines in 2014, and its goal was to give people access to the platform via mobile phone. It allows people to deposit money, shop, pay their bills, connect to banking services and send money locally and internationally using their devices.
Another part of their financial inclusion mission is to provide the public with mobile access to crypto. As a result, users can buy and sell Bitcoin, Ethereum and others without a bank account. The company is currently beta testing CoinPro, an exchange platform for digital currencies.
Despite the crashes and fluctuations in the cryptocurrency market, wealthtech startups are growing and creating innovative ways to deliver solutions to customers. Bitcoin is still a good investment, not only as a payment option but also as a long-term asset.
Bitcoin startups in Southeast Asia benefit from their governments’ push for the adoption of blockchain technology and cryptocurrencies. New laws and regulations also create a secure base for companies to operate credibly in local and international financial markets.
The crypto world will continue to experience volatility due to the previously mentioned factors. Even so, the industry is resilient, ever-evolving and has the potential for great success.