Original title: The United States wants to eat the big cake of the crypto market, and Asian countries are beginning to worry
Written by Tiger Research
Compiled by AididiaoJP, Foresight News
summary
Regulatory and government developments
Hong Kong plans to introduce stablecoin regulations in August to consolidate its position as a digital financial hub.
Singapore has a strict licensing system that prohibits unlicensed companies from operating in Singapore.
Thailand launches G-Tokens, becoming the first country to issue digital government bonds.
Corporate Activities
Japanese listed companies have adopted Bitcoin as a cash reserve strategy, driving a surge in institutional investment.
Chinese companies circumvented domestic restrictions through Hong Kong licenses and began accumulating Bitcoin.
Policy shift
After the South Korean election, the Korean won stablecoin became the focus, but the problem of regulatory fragmentation still exists.
Vietnam has made a historic move from banning cryptocurrencies to full legalization.
The Philippines adopts a dual-track strategy, combining strict regulation with a sandbox framework.
Asian Web3 Market Q2: Regulation Stabilizes, Corporate Investment Increases
While the center of gravity of the Web3 market has clearly shifted toward the United States, developments in key Asian markets remain critical. Not only does Asia have the largest cryptocurrency user base in the world, it also continues to operate as a core hub for blockchain innovation.
To this end, Tiger Research continues to track major trends in Web3 in Asia on a quarterly basis. In the first quarter of 2025, regulators across Asia laid the policy foundation: introducing new regulations, issuing licenses and launching regulatory sandboxes, and cross-border cooperation also began to take shape.
The regulatory foundation in the second quarter promoted substantive business activities and accelerated capital deployment. The policies introduced in the first quarter were tested in the market, prompting further refinement and implementation of the regulations.
Institutional and corporate participation has increased significantly. This report analyzes the progress of the second quarter by country and assesses how policy shifts in various countries shape the global Web3 ecosystem.
Key developments in major Asian markets
2.1. South Korea: The intersection of political transition and regulatory change
Source: Tiger Research
In the second quarter, cryptocurrency policy became a hot topic ahead of South Korea’s presidential election in June. Candidates actively made Web3-related commitments, and with Lee Jae-myung’s victory, the market expected major policy adjustments.
One of the core topics was the launch of the Korean won stablecoin. Related stocks (such as Kakao Pay) rose in response, and traditional financial institutions also began to apply for Web3-related trademarks in preparation for entering the market.
However, conflicts have emerged in the policy-making process, especially the jurisdiction dispute between the Bank of Korea and the Financial Services Commission (FSC). The central bank advocates early intervention in the approval process and regards stablecoins as a part of the digital financial ecosystem parallel to the central bank digital currency (CBDC).
In July, the Democratic Party announced that the launch of the Digital Asset Innovation Act would be postponed for 1-2 months. The lack of a clear policy leader seems to be the key bottleneck, and inter-departmental consultations are still fragmented. Therefore, although the Korean won stablecoin has become the focus, specific regulatory guidelines are still missing.
Still, incremental progress has been made at the institutional level. New rules in June allow nonprofits and exchanges to sell donated crypto assets and immediately liquidate them, while requiring them to do so in a way that minimizes market impact.
Global exchanges continue to show interest in the Korean market: Crypto.com Korea has completed docking with Upbit and Bithumb, and KuCoin has also stated that it will return to the market after meeting regulatory standards.
Offline activities have increased significantly. Compared with last year, the number of meet-ups held by project parties has increased sharply, and the frequency of international projects visiting South Korea during non-conference periods has also increased significantly. However, business-oriented activities have caused fatigue among local builders.
2.2. Japan: Institutional and corporate adoption drives Bitcoin strategic expansion
Source: Bitcoin Treasury
In the second quarter, Japanese listed companies set off a wave of Bitcoin allocation. This trend was mainly driven by MetaPlanet, which received a return of about 39 times after its first purchase of Bitcoin in April 2024. Its performance became a market benchmark, prompting companies such as Remixpoint to follow suit.
At the same time, the construction of stablecoins and payment infrastructure has accelerated. Sumitomo Mitsui Financial Group is working with Ava Labs and Fireblocks to prepare for the issuance of stablecoins; Mercoin, a crypto subsidiary of the second-hand platform Mercari, has added XRP trading support, covering more than 20 million monthly active users.
As the private sector is active, regulatory discussions are also evolving. The Financial Services Agency (FSA) of Japan has proposed a new classification system that divides crypto assets into two categories:
Type 1: Tokens used for financing or business operations
Type 2: General purpose crypto assets
However, these updates are still in the discussion stage and substantive changes are limited.
Participation by retail investors remains low. Japanese retail investors have always preferred conservative strategies and are cautious about crypto assets. Therefore, even if there are new entrants, it will be difficult to bring in retail capital in the short term.
This is in stark contrast to markets such as South Korea, where active retail participation directly provides early liquidity for new projects. Japans institutional-led model is more stable but may limit short-term growth momentum.
2.3. Hong Kong: Regulating Stablecoins and Expanding Digital Financial Services
In the second quarter, Hong Kong promoted the regulatory framework for stablecoins and strengthened its position as a digital financial hub in Asia. The Hong Kong Monetary Authority (HKMA) announced that new regulations on stablecoins will take effect on August 1, and the issuer licensing system is expected to be implemented before the end of the year.
Source: HKMA
The first batch of regulated stablecoins is expected to be launched in the fourth quarter (as early as this summer). Companies that have participated in the HKMA’s sandbox may become pioneers, and their progress will be worth paying attention to.
The scope of digital financial services has also expanded significantly. The Securities and Futures Commission (SFC) plans to allow professional investors to trade virtual asset derivatives, and licensed exchanges and funds are allowed to provide pledge services. These measures reflect Hong Kong’s clear intention to build a more comprehensive and institution-friendly digital asset ecosystem.
2.4. Singapore: Tightening regulation - between control and protection
Source: MAS
Singapores crypto regulation has clearly turned stricter in the second quarter. The most notable is that the Monetary Authority of Singapore (MAS) has completely banned unlicensed digital asset companies from operating locally, explicitly opposing regulatory arbitrage.
The new rules apply to all local companies that provide services to global users, and essentially make formal licenses mandatory. Business registration is no longer possible.
This change puts pressure on local Web3 companies. Companies are faced with a choice: either establish a fully compliant entity or move to a region with looser regulation. Although the policy aims to improve market integrity and consumer protection, the restrictions on early cross-border projects are self-evident.
2.5. China: Internationalization of the digital RMB and corporate Web3 strategies
In the second quarter, China promoted the internationalization of the digital RMB, with Shanghai becoming the core base. The Peoples Bank of China plans to set up an international operations center in Shanghai to support the cross-border application of digital currency.
But there is a disconnect between policy and practice. Despite a nationwide ban on cryptocurrencies, local governments such as Jiangsu have reportedly sold confiscated digital assets to fill fiscal gaps, showing a pragmatic attitude that goes against central policy.
Chinese companies also adopt flexible strategies. Logistics group AdanTex and others have begun to follow the example of Japanese companies in accumulating Bitcoin; other companies have circumvented mainland restrictions through Hong Kong licenses and participated in the global Web3 market.
Interest in RMB stablecoins also heated up at the end of the quarter. Due to concerns about the dominance of US dollar stablecoins and the depreciation of the RMB, related discussions have become increasingly active. On June 18, Pan Gongsheng, governor of the central bank, put forward the vision of building a multipolar global monetary system, suggesting an open attitude towards the issuance of stablecoins. In July, the Shanghai State-owned Assets Supervision and Administration Commission launched a seminar on the development of RMB stablecoins.
2.6. Vietnam: Legalization of Cryptocurrency and Strengthening of Digital Control
Vietnam officially legalized cryptocurrency in the second quarter, a major policy shift. On June 14, Vietnam’s National Assembly passed the Digital Technology Industry Law, which recognizes digital assets and outlines incentives for areas such as artificial intelligence, semiconductors, and digital infrastructure.
This marks a historic reversal of Vietnam’s ban on cryptocurrencies, positioning the country as a potential catalyst for wider cryptocurrency adoption in Southeast Asia. Given Vietnam’s previous restrictive stance, the move marks a significant shift in cryptocurrency policy in the region.
At the same time, the government has stepped up control over digital platforms. Authorities have asked telecom operators to block Telegram, citing fraud, drug trafficking and terrorism as reasons. Police reports show that 68% of the 9,600 active channels on the platform are involved in illegal activities.
This two-pronged approach, legalizing cryptocurrencies while combating digital abuse, reflects Vietnam’s intention to allow innovation within a strictly monitored context. While digital assets now have legal recognition, their use for illegal activities is being hit by tougher law enforcement.
2.7. Thailand: Government-led digital asset innovation
Thailand advanced its state-led digital asset plan in the second quarter. The Securities and Futures Commission (SEC) plans to allow exchanges to list their own utility tokens, relaxing previously strict listing rules.
More notably, the government announced the issuance of digital bonds. On July 25, Thailand will issue $150 million in G-Tokens through an approved ICO portal. The tokens cannot be used for payment or speculative transactions.
This move is a rare case of direct public sector participation in the issuance of digital assets, providing an early model for global tokenized finance.
2.8. Philippines: Strict regulation and innovative sandbox in parallel
The Philippines implemented a dual-track strategy of regulation + innovation in the second quarter. The central bank and the Securities and Exchange Commission (SEC) strengthened the control over the listing of tokens and significantly expanded VASP registration and anti-money laundering compliance requirements.
Particularly prominent are the new rules for influencers. Content creators promoting crypto assets must register with the authorities, and violators can be sentenced to up to five years in prison, making it one of the strictest enforcement regimes in Asia Pacific.
The Innovation Support Framework was also launched simultaneously. The CSRC opened applications for the StratBox sandbox program to provide a controlled testing environment for crypto service providers.
【Disclaimer】The market is risky, so be cautious when investing. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.
