The Asian Bankers Association (ABA) and Fintelekt Advisory Services, an ABA Knowledge Partner, held a very successful webinar on “2024 Crypto Review & Outlook for 2025” on 14 February 2025 that gathered 637 registrants from over 30 countries..
Moderated by Karishma Dattani. Vice President, Fintelekt, the 50-minute webinar featured Calvin Koo, Crypto Expert and Cross-Border Disputes and Investigations Lawyer, Kobre & Kim LLP.
Presentation Summary
Koo provided a comprehensive recap of the cryptocurrency landscape in 2024 and a thoughtful forecast for the year ahead. Reflecting on 2024, Koo described it as a year of significant momentum in the crypto space, driven by both technological advancements and regulatory shifts. He highlighted the mainstream adoption of cryptocurrencies, noting that institutional participation surged as banks and asset managers began offering crypto-related services like custody and trading.
Bitcoin and Ethereum remained dominant, but Koo pointed out the rise of alternative blockchains and layer-2 solutions that enhanced scalability and reduced transaction costs. Dattani interjected to ask how these trends affected Asian markets, prompting Koo to discuss the region’s diverse responses—Singapore and Hong Kong embraced crypto-friendly policies, while others like India tightened controls. A notable event from 2024, according to Koo, was the increased enforcement against unregulated exchanges, with several high-profile cases exposing vulnerabilities in the ecosystem. This crackdown underscored the need for robust compliance frameworks, a recurring theme throughout the webinar.
The discussion then pivoted to regulatory developments, a critical focus given Koo’s legal background. He explained that 2024 saw global regulators, including those in Asia, refine their approach to crypto, with the Financial Action Task Force (FATF) Travel Rule gaining traction. This rule, requiring virtual asset service providers to share customer data, posed challenges for banks integrating crypto services, as they had to balance innovation with anti-money laundering (AML) obligations. Koo cited examples of jurisdictions like Japan, which strengthened its AML regime, and contrasted them with slower adopters, illustrating the uneven regulatory landscape.
Dattani probed deeper into the implications for banks, leading Koo to stress that financial institutions must invest in technology and training to navigate this complex environment. He also noted that 2024’s legal actions against crypto fraud set a precedent, signaling stricter oversight in the coming year.
Looking ahead to 2025, Koo offered an optimistic yet cautious outlook. He predicted that institutional adoption would accelerate, fueled by clearer regulations and the maturation of crypto infrastructure, such as stablecoins and decentralized finance (DeFi) platforms. Central bank digital currencies (CBDCs) were another focal point, with Koo suggesting that China’s digital yuan and pilot programs in Southeast Asia could influence private crypto markets. Dattani asked about technological trends, and Koo highlighted advancements in blockchain interoperability and zero-knowledge proofs, which could enhance privacy and efficiency. However, he tempered his optimism with warnings about persistent risks—cybersecurity threats, market volatility, and regulatory uncertainty remained top concerns. For Asian bankers, Koo emphasized the opportunity to lead in tokenization, where assets like real estate or bonds are digitized, but urged them to prioritize compliance to avoid pitfalls.
To distill some of the webinar’s key insights:
- Regulatory Evolution: Koo underscored that 2025 will likely bring more harmonized crypto regulations in Asia, with the FATF Travel Rule shaping bank strategies.
- Tokenization Potential: He flagged tokenization as a transformative trend, offering banks new ways to engage with digital assets.
- Cybersecurity Imperative: With rising crypto adoption, Koo warned that banks must bolster defenses against hacks and fraud.
The webinar wrapped up with a call to action from Koo, facilitated by Dattani’s closing questions. He encouraged Asian banks to collaborate with regulators, adopt cutting-edge compliance tools, and explore partnerships with fintechs to stay competitive in the crypto space. The session painted 2024 as a year of growth tempered by challenges, while casting 2025 as a pivotal moment for banks to solidify their role in the digital asset economy.
The video recording of the webinar can be viewed at the ABA YouTube HERE.
