# Western Exchanges Bolster Asian Expansion: Robinhood and Coinbase Lead the Charge

Western exchanges such as Robinhood and Coinbase are making decisive moves to expand into the Asian market. These companies are leveraging regulation-friendly hubs and localization strategies to capture market share in Asia.

# Local Exchanges Maintaining Market Dominance

Local exchanges hold significant advantages with well-established market dominance, robust fiat integration systems, and adaptability to regulatory changes, posing the greatest competition to Western exchanges entering the market.

# Key Strategies for Success in the Asian Market

Success in the Asian market hinges on effective localization. Establishing partnerships with financial institutions, adhering to regulations, and offering tailored products that align with local user behavior are the keys to success.

## East-West Dynamics in the Cryptocurrency Market

Asia currently plays a pivotal role in the global cryptocurrency market, driven by 1) trading volumes, 2) retail investor activity, and 3) institutional engagement. The region’s dynamic economy and strong retail participation have cemented Asia’s role as a key player in the cryptocurrency market.

Consequently, Western exchanges that have secured substantial market share domestically consider Asia as a prime region for expansion. Recent developments, such as Robinhood’s plan to enter Singapore and Coinbase’s push into Southeast Asia through local stablecoins, exemplify this trend.

However, local exchanges in various Asian regions already exhibit high market penetration, with many residents widely using global exchanges like Binance. This suggests that Western exchanges are likely to face significant challenges in their expansion efforts.

This report examines the competitive dynamics shaping the Asian cryptocurrency market, providing insights into successful strategies, challenges faced by Western and regional players, and unique opportunities for collaboration within this evolving space.

## Recent Moves by Western Exchanges in Entering Asian Markets

### Robinhood’s Compliance-First Approach

Robinhood’s entry into Singapore represents a strategic move to establish a foothold in Asia’s burgeoning digital asset market. Utilizing Bitstamp, a European digital asset exchange acquired for $200 million, Robinhood plans to secure regulatory approval and position itself within Singapore’s crypto-friendly regime. Bitstamp’s existing in-principle approval from the Monetary Authority of Singapore (MAS) offers Robinhood a regulatory advantage, facilitating a smoother market entry.

According to Bloomberg, Robinhood aims to introduce cryptocurrency products in Singapore under a new entity by 2025. Although the Bitstamp acquisition is not yet finalized, securing MAS’ in-principle approval indicates Robinhood’s strong regulatory positioning for a compliant launch.

By prioritizing regulatory compliance, Robinhood differentiates itself from other exchanges operating in regulatory gray areas. The company seeks to attract retail traders and institutional investors who prioritize a secure trading environment within the regulatory framework.

Moreover, Robinhood’s expansion into Singapore is part of its broader international growth strategy. Already offering cryptocurrency trading services in Europe, Robinhood aims to extend its licensing footprint in Asia, positioning itself to offer comprehensive digital and traditional financial services globally.

Singapore’s appeal as a base lies in its clear, rigorous regulatory framework, high concentration of institutional capital, and crypto-friendly environment. These factors make Singapore an ideal starting point for Robinhood to test and expand its cryptocurrency services across Asia.

By establishing a presence in regulatory hubs like Singapore, Robinhood can lay a foundation for expanding services across the region as regulatory clarity improves.

### Coinbase’s Stablecoin and Infrastructure Strategy

Coinbase is leveraging stablecoins for Southeast Asia expansion. In markets like Thailand and the Philippines, Coinbase is advancing initiatives using stablecoins pegged to local currencies, aligning with its strategic direction. Thailand is testing stablecoins through projects like the Phuket Sandbox, with the central bank approving a peso stablecoin pilot in the Philippines.

To reinforce this momentum, SCB 10X has recently launched the Luubi Wallet based on the Base blockchain, supporting both Thai baht ($THBX) and U.S. dollar stablecoins. This development aligns with Coinbase’s strategy, promoting local infrastructure growth by focusing on Base and Thai baht stablecoin utilization.

Coinbase also integrated Transak into its wallet in 2022, enabling cryptocurrency purchases using local currencies and payment systems. This indicates Coinbase’s approach focuses on entering markets in alignment with national digital currency policies through wallet services and the Base blockchain platform, contrasting with Robinhood’s direct expansion as an exchange.

Through strategic partnerships, Coinbase aims to firmly establish itself within Asia’s evolving digital economy. This approach reflects Western companies’ attempts to integrate into the Asian financial ecosystem through infrastructure development rather than direct competition with dominant local exchanges.

These two cases illustrate differing approaches: prioritizing regulatory compliance and institutional investor attraction versus focusing on financial infrastructure and stablecoin utility. Both strategies have growth potential, but their success will depend on how well these companies navigate Asia’s complex regulatory and competitive landscape.

## Differentiated Strategies for Western Exchanges Entering Asia

Asia’s diverse regulatory landscape has bolstered local exchange dominance in some regions while enabling global exchanges to thrive in others. Understanding this market structure is crucial for Western exchanges planning expansions into the region.

### Dominated Markets by Local Exchanges

South Korea exemplifies local exchange dominance driven by a stringent regulatory framework. Domestic platforms like Upbit and Bithumb thrive under strict compliance with regulations, including the Travel Rule and financial reporting requirements. These stringent regulations hinder Western exchanges from achieving licensing and regulatory compliance, complicating their entry into the Korean market.

Similarly, Japan’s strictly regulated market is dominated by local exchanges such as BitFlyer and Coincheck, overseen by the Financial Services Agency (FSA), which enforces rigorous licensing requirements. The warnings issued to foreign exchanges like KuCoin and Bybit highlight the regulatory barriers faced by Western companies.

Binance entered the Thai market through a strategic partnership with Gulf Energy, establishing a joint venture to launch a regulated digital asset exchange. This collaboration enabled Binance to secure a license from the Securities and Exchange Commission (SEC), ensuring regulatory compliance while leveraging Gulf Energy’s extensive business influence.

Partnering with influential local companies provides foreign exchanges with a regulatory-compliant, scalable pathway into restrictive markets, benefiting from established business networks. Rather than directly competing with dominant incumbents, forming partnerships with existing platforms, focusing on institutional services, or offering specialized financial products may prove more effective.

### Dominated Markets by Global Exchanges

Contrastingly, countries like Vietnam lack clear regulations for cryptocurrency exchanges, limiting local platform development. In some cases, even if local exchanges exist, high taxation drives investors to global exchanges.

In this regulatory void, global exchanges such as Binance, OKX, and Bybit have expanded their influence. They effectively meet local user demands through P2P services and low-fee policies, gaining significant market share with flexible services not offered by local platforms.

Global exchanges have used localized Telegram communities, referral programs, and enhanced local language support to rapidly acquire users, fostering direct communication channels and increasing market penetration.

Operating within regulatory ambits often means legally grey areas. However, with global regulations tightening, compliance with local legal requirements is increasingly necessary, imposing significant operational changes on global exchanges.

For example, in January 2024, India’s financial enforcement agency requested IP blocking for nine foreign exchanges, including Binance, which was lifted only after Binance committed to regulatory compliance. Similarly, in November 2023, the Philippine SEC issued a warning to Binance for unlicensed operations, leading to an official IP block in March 2024. These actions underscore the intensifying regulatory scrutiny worldwide.

With evolving regulatory environments, global exchanges must adjust strategies to operate within clear legal frameworks. Compliance is becoming essential, shifting from an option to a core component of sustainable business models. As the cryptocurrency industry matures, this compliance trend is expected to intensify.

## Market Entry Strategies

Success in Asia’s cryptocurrency market requires deep localization beyond mere language translation. Exchanges must integrate local currencies, align with regional asset trends, and connect with local payment systems.

In Vietnam, support for VND through P2P services and strategic billboard campaigns have helped exchanges establish a strong foothold. Similarly, events tied to local festivals boost brand awareness and market presence.

Understanding user behavior is another crucial factor. In remittance-heavy economies like the Philippines, Coins.ph has attracted users through cryptocurrency-based remittance solutions. Following this model, Coinbase has introduced stablecoins pegged to local currencies like the Thai baht and Philippine peso, enhancing accessibility from fiat to cryptocurrency. These tailored financial products address specific regional needs, promoting adoption among retail users.

Lastly, forming strategic partnerships with local financial institutions is essential to build trust and extend reach. Collaborations with Thai banks, for instance, facilitate fiat-to-cryptocurrency transactions, lowering entry barriers for retail investors. Western exchanges must prioritize regulatory alignment, ecosystem collaboration, and localized innovation to effectively compete in Asia’s complex and fast-evolving cryptocurrency environment.

## Future Outlook: Collaboration Over Competition

Rather than attempting to displace dominant exchanges, Western exchanges may find greater success through collaborative approaches. Instead of competing directly with local exchanges, partnering with them and positioning as regulatory compliance partners or infrastructure enablers can secure sustainable market positions.

Currently, Asia represents immense opportunities and formidable challenges for Western exchanges. Success in this market requires more than just expansion—understanding regional market dynamics, user behavior, and regulatory frameworks is critical.

Cryptocurrency regulation is evolving globally, with faster dynamics in Asia. Western exchanges seeking expansion must adopt a compliance-first, partnership-centric approach. For exchanges targeting Asia: this is not a market to conquer but a market to integrate into.

*The above article is a comprehensive translation of “Robinhood and Coinbase’s Expansion into Asia: Exchanges Flocking to Growing Markets,” by global Web3 research institution Tiger Research, a partner organization of Block Media. The full report is available on the Tiger Research official website.*