This adjacent market within the crypto security arena is poised for explosive growth. So we’re not just talking about a slight increase – that’s a leap from $4.6 billion this current year to an estimated $21.21 billion by 2032. That's a 23% compound annual growth rate. Let's be blunt: if you're not paying attention, you're leaving money on the table. The question isn’t whether or not this growth is going to happen, it’s about who is going to reap the biggest benefits. Currently, I’ve got my eyes on Asia — Southeast Asia specifically.

Southeast Asia's Untapped Potential

Imagine Southeast Asia as the crypto Wild West. Today, adoption rates are higher than ever, particularly in countries such as the Philippines. There, remittances and a large unbanked population provide a fertile ground for digital currencies to flourish. With opportunity comes risk. That’s a fact. Where there’s risk, there’s a need for insurance security.

  • High crypto adoption rate
  • Large unbanked population
  • Stringent KYC and AML regulations

I had inspiring discussions in Manila with startup founders who are creating smart solutions. Their priorities lie in fighting fraud, protecting wallets, and being compliant with regulations. Their passion is undeniable. For one thing, they know the subtle aspects of their local markets in ways that Western companies just don’t have the cultural connection to appreciate. That is their advantage. Are they getting the support they need to scale, and scale fast?

Big Money, Local Advantage?

See, this isn't just about technical expertise. It’s centered around learning the local regulatory terrain, establishing relationships and trust with communities, and meeting unique regional security priorities. A one-size-fits-all approach simply won't cut it.

Think about it like this: would you rather trust a Western cybersecurity firm that’s never stepped foot in Southeast Asia to protect your assets, or a local startup that understands the unique challenges and cultural nuances of the region? I know where I'd put my money.

This anticipated growth is fueled by the times’ dynamic demand for full-fledged trust and security solutions. This includes everything from blockchain forensics to KYC/AML compliance. Cloud deployments dominate now (62.05%), but on-premise solutions will gain traction in finance and healthcare due to data sovereignty requirements. Instead, this creates much greater opportunity for the startups with the most niche, specialized, and localized solutions.

Many of these startups are bootstrapped or rely on angel investors. They’re in fierce competition with other startups and established players with much deeper pockets and global reach. They need access to the same venture capital, mentorship, and supportive ecosystem that was established in Silicon Valley.

Southeast Asian governments need to wake up. They should establish regulatory sandboxes, provide tax breaks for companies working on legal crypto applications, and make it easier for crypto businesses that want to comply with the law. More importantly, they should be doing everything they can to foster a burgeoning crypto security industry that would drive economic growth and create good-paying jobs.

Governments: Wake Up Now!

Let’s face it, most regulators are still on the back foot. They're scared of the potential risks of crypto, but they're missing out on the enormous economic opportunities. A smart regulatory approach is needed, an approach that encourages innovation but reduces potential harms.

Venture capital firms must cease ignoring these dynamic startups. They can only do that if they stop focusing solely on Silicon Valley and start realizing the potential that is Southeast Asia.

I’ve talked to thousands of founders who have great ideas but can’t get the money. They are up against fierce competition from the companies that have raised hundreds of millions ahead of them. Even so, their solutions tend to be more creative and better adapted to their local market. It’s frustrating, it’s unfair, and at the end of the day, it’s a lost opportunity.

Reality is, this $21.21 billion crypto security boom is more than technology. It's about people. It’s about the passionate founders who are working around the clock to make our financial lives more secure and accessible. More than that, it’s about the communities that are diving head first into crypto as an opportunity to help them improve their future. In the end, it’s really about fairness and equity and providing equal access to everyone to achieve a successful outcome.

This isn't just about making money. It's about building a better future. And that’s something we can all cheer for. The time to act is now. Don't let this opportunity pass us by. Are Asian startups ready to cash in? They should be, but they require our advocacy. Let's make it happen.

What can you do?

  • If you're a founder: Don't be afraid to ask for help. Seek out mentors, network with other entrepreneurs, and pitch your ideas to investors.
  • If you're an investor: Take a closer look at Southeast Asia. You might be surprised by what you find.
  • If you're a policymaker: Create a supportive regulatory environment that fosters innovation.
  • If you're a consumer: Support local crypto businesses and demand better security.

This isn't just about making money. It's about building a better future. And that's something we can all get behind. The time to act is now. Don't let this opportunity pass us by. Are Asian startups ready to cash in? They can be, but they need our support. Let's make it happen.