As the Asian economy gains a bigger status in the international arena, the possibility and advantages of forming a financially integrated block in Asia are getting stronger as well. However there seems to be no material progress made to advance the integration of the Asian economies. The main culprits for this lack of progress are believed to be the lack of regional consensus on this issue and differences in underlying financial regulatory system across Asia. This paper suggests that promoting intra-regional capital flows can help to mitigate these problems. Liberalizing capital flows across the region will help to develop the regional financial markets as well as enhance mutual understanding, a key to forming a consensus, by encouraging information sharing and policy cooperations. This paper also has some suggestions as to how to minimize the potential destabilizing effects of free capital flows across the region.