DEFA, the world’s first region-wide, binding agreement focused exclusively on the digital economy, provides a strategic roadmap to harmonize digital trade rules and enable seamless cross-border data flows. It aims to unlock the potential of emerging technologies such as blockchain, artificial intelligence, cloud computing, and digital payment platforms, while reducing regulatory fragmentation across the region.
With a goal of doubling ASEAN’s digital economy to $2 trillion by 2030, DEFA specifically supports MSMEs, which account for 97% of ASEAN businesses and 85% of employment. By streamlining digital regulations and improving access to e-commerce, these businesses can integrate into regional value chains and compete on a global scale.
Blockchain and digital asset ecosystems stand to gain significantly. DEFA establishes a coherent regulatory framework for digital identity, secure transactions, and e-payments, encouraging investments in innovative startups and digital platforms. Already in 2023, 71% of venture capital deals in ASEAN were digital-economy-related, signaling the region’s rapid growth.
Beyond economic impact, DEFA promotes sustainability and inclusion. From paperless customs and smart logistics to green technologies, digital tools are expected to reduce trade’s environmental footprint while empowering women entrepreneurs, rural innovators, and youth-led startups.
ASEAN positions itself as a trusted digital partner in an increasingly competitive global landscape. The framework complements cooperation with key partners such as Australia, China, the US, the EU, India, Japan, South Korea, and New Zealand, signaling to investors and institutions ASEAN’s readiness to shape global digital standards.
For blockchain and crypto enthusiasts, DEFA offers clearer legal and trade structures, enhanced confidence in digital assets, and improved opportunities for cross-border payments and DeFi projects across ASEAN.
Source: World Economic Forum, “Why ASEAN’s new Digital Economy Framework Agreement is a game-changer” May 26, 2025