Walnut, CA, February 09, 2025 –(PR.com)– As ASEAN moves into the second year of negotiations for Digital Economy Framework Agreement (DEFA), the region is being positioned as its most ambitious digital policy to date. This framework aims to unify standards for digital identification and payments, cross-border data flows, and digital trade.
If ASEAN can successfully implement DEFA, it won’t just harmonize the digital economies of its 10 member nations — it could set a global precedent for balancing regulatory oversight, data privacy, and innovation.
3DiVi Inc. experts believe ASEAN is uniquely positioned to bridge this gap. As Dmitry Morozov, Co-Founder of 3DiVi, puts it:
“DEFA is ASEAN’s chance to set a global benchmark for digital frameworks that prioritize security without stifling innovation. With the right technologies and policies, the region can not only protect its digital future but also unlock unprecedented economic growth.”
1. Regulatory Balance: ASEAN vs. US/EU Frameworks
As cyber threats grow more sophisticated, governments worldwide are tightening regulations. The EU’s NIS2 Directive and the US’s CIRCIA Act drive compliance, while Japan’s APPI and Singapore’s age-verification requirements in app stores (Reed Smith) are setting new security standards across ASEAN, pushing the region toward stricter compliance.
69% of organizations globally struggle with regulatory complexity and supply chain compliance, according to the WEF’s Global Cybersecurity Outlook 2025.
The region must address both regulatory fragmentation and infrastructure gaps to create a truly cohesive and secure digital economy. Rather than following the EU’s rigid GDPR or the US’s market-driven model, DEFA could set a global benchmark—creating a regulatory model that fosters digital growth while prioritizing security and data privacy.
2. Deepfake Era: The Growing Biometric Challenge in 2025
As noted in WEF 2025 discussions on January 24, the region’s rapid digitization creates both opportunities and vulnerabilities. As fintech continues to flourish in the ASEAN region, the digital ecosystem faces an escalating challenge: the rise of deepfake threats.
The global cost of cybercrime, including deepfake-driven fraud, is expected to reach a staggering $11.36 trillion annually by 2026, as highlighted by a Statista report. This represents an immense risk to ASEAN’s digital economy, and if the region doesn’t take immediate action, it could find itself vulnerable to a wave of security breaches that will cripple digital trust.
Artyom Vakilov, Product Owner of 3DiVi’s Biometric Anti-fraud (BAF) solution, highlights the risks:
“In 2024, we’re seeing a concerning gap in how financial institutions across ASEAN are preparing for the growing cyber threat. Many of these institutions still lack a formal, standardized approach to detect and combat this emerging challenge, which is an urgent issue that must be addressed as part of the region’s broader cybersecurity strategy. It is essential for ASEAN countries to adopt proactive security frameworks that include advanced solutions like liveness detection, multi-factor authentication, and biometric identification. This aligns with Indonesia’s recent digital ID pilot project, Biometric Update, which aims to integrate advanced biometric security measures. However, the real challenge lies in scaling these technologies region-wide—a goal DEFA could help achieve.”
Final Thoughts: Can ASEAN’s DEFA Find the Right Balance?
One of ASEAN’s DEFA biggest hurdles is its varying levels of digital infrastructure. Countries like Singapore boast advanced systems, while others face limited connectivity and outdated infrastructure. This disparity risks leaving some member states behind as the region pushes for digital integration.
With Malaysia urging member states to finalize the DEFA by the end of 2025, the region stands at a crossroads. Officials addressing growing concerns around data sovereignty, cybersecurity, and the increasing sophistication of cybercrime in the region.
This urgency is well-founded. As Gobind Singh Deo , Malaysia’s Minister of Digital, highlights in his post: “Once the negotiation is completed, ASEAN DEFA is projected to double the ASEAN digital economy’s value to US$2 trillion by 2030, up from a projected US$1 trillion without DEFA, and has the potential to multiply each member state’s digital economy by 4-7 times.”
If ASEAN finalizes DEFA this year, the region has the potential to lead the world in fintech innovation. Dmitry Morozov emphasizes the need for collaboration:
“Public-private partnerships and youth-focused initiatives, such as entrepreneurship programs, are essential for addressing these gaps. Companies like 3DiVi can help ASEAN nations leapfrog infrastructure limitations. 3DiVi is ready to collaborate with ASEAN nations to ensure secure, efficient, and user-friendly digital transformation.”
What’s your take? Can ASEAN DEFA really set the global benchmark for digital security, or is it just an ambitious vision?
About 3DiVi Inc.
3DiVi Inc., founded in 2011, is one of the leading international developers of AI and machine learning (ML) technologies for computer vision. The company’s computer vision algorithms cover face recognition, body and skeletal tracking, spatial understanding and object recognition.
For more information: https://3divi.ai/
3DiVi Inc.
David Mitchell
+1 408 462 2760
3divi.ai
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