Regulatory stability is increasing across countries, and corporate investment continues to grow.
Written by: Tiger Research
Translated by: AididiaoJP, Foresight News
Summary
Regulatory and Government Dynamics
Hong Kong plans to introduce stablecoin regulations in August to solidify its position as a digital financial center.
Singapore has implemented a strict licensing system, prohibiting unlicensed companies from operating in Singapore.
Thailand has launched G-Tokens, becoming the first country to issue government digital bonds.
Corporate Activities
Japanese listed companies are increasingly adopting Bitcoin as a funding reserve strategy, driving a surge in institutional investment.
Chinese companies are circumventing domestic restrictions through Hong Kong licenses and are beginning to accumulate Bitcoin.
Policy Shift
After the Korean election, the Korean won stablecoin became the focus, but issues of regulatory fragmentation still persist.
Vietnam has historically shifted from banning cryptocurrencies to full legalization.
The Philippines has adopted a dual-track strategy, combining strict regulation with a sandbox framework.
Asia's Web3 Market in the Second Quarter: Regulatory Stability Increases and Corporate Investment Grows
Although the focus of the Web3 market has clearly shifted to the United States, the development of major markets in Asia remains crucial. Asia not only has the world's largest cryptocurrency user base but also continues to operate as a core hub for blockchain innovation.
To this end, Tiger Research continues to track major trends in Asia's Web3 sector on a quarterly basis. In the first quarter of 2025, regulators across Asia laid the groundwork for policies: introducing new regulations, issuing licenses, and initiating regulatory sandboxes, with early signs of cross-border cooperation.
In the second quarter, regulatory foundations propelled substantial business activity and accelerated capital deployment. Policies introduced in the first quarter have been tested in the market, prompting further refinement and implementation of regulations.
Institutional and corporate participation has significantly increased. This report analyzes the progress made in the second quarter by country and assesses how shifts in national policies are shaping the global Web3 ecosystem.
Key Developments in Major Asian Markets
2.1. South Korea: Intersection of Political Transition and Regulatory Adjustment
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 expects significant policy adjustments.
One of the core issues is the launch of the Korean won stablecoin. Related stocks (such as Kakao Pay) have risen in response, and traditional financial institutions are also starting to apply for Web3-related trademarks in preparation for entering the market.
However, conflicts arose during the policy-making process, particularly between the Bank of Korea and the Financial Services Commission (FSC) over jurisdiction. The central bank advocates for early intervention in the approval process, viewing stablecoins as components of a digital financial ecosystem parallel to central bank digital currencies (CBDCs).
In July, the Democratic Party announced a 1-2 month delay in the introduction of the (Digital Asset Innovation Bill). The lack of a clear policy leader seems to be a key bottleneck, and inter-departmental consultations still appear fragmented. Therefore, despite the focus on the Korean won stablecoin, specific regulatory guidance remains absent.
Despite this, incremental progress has been achieved at the institutional level. New regulations introduced in June allow non-profit organizations and exchanges to sell donated cryptocurrency assets and cash them out immediately, while requiring operations to minimize market impact.
Global exchanges have shown continued interest in the Korean market: Crypto.com Korea has completed integration with Upbit and Bithumb, and KuCoin has also indicated it will return to the market after meeting regulatory standards.
There has been a noticeable increase in offline activities. Compared to last year, the number of meetups organized by project parties has surged, and the frequency of international projects visiting South Korea outside of conference periods has also significantly increased. However, business-oriented activities have led to 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 experienced a wave of Bitcoin allocation. This trend was mainly driven by MetaPlanet, which reportedly achieved about 39 times returns after its first Bitcoin purchase in April 2024, setting a benchmark for the market and prompting companies like Remixpoint to follow suit.
Meanwhile, the construction of stablecoin and payment infrastructure has accelerated. Sumitomo Mitsui Financial Group is collaborating with Ava Labs and Fireblocks to prepare for stablecoin issuance; the second-hand platform Mercari's crypto subsidiary Mercoin has added XRP trading support, reaching over 20 million monthly active users.
As the private sector becomes active, regulatory discussions are also evolving. The Financial Services Agency (FSA) of Japan has proposed a new classification system, dividing cryptocurrency assets into two categories:
Type 1: Tokens used for financing or business operations
Type 2: General-purpose cryptocurrency assets
However, these updates are still in the discussion phase, with limited substantive change.
Retail investor participation remains sluggish. Japanese retail investors have traditionally preferred conservative strategies and are cautious about cryptocurrency assets. Therefore, even with new entrants, it is unlikely to bring in retail capital in the short term.
This sharply contrasts with markets like South Korea, where active retail participation directly provides early liquidity for new projects. Although Japan's institutional-led model is more stable, it may limit short-term growth momentum.
2.3. Hong Kong: Regulating Stablecoins and Expanding Digital Financial Services
In the second quarter, Hong Kong advanced its stablecoin regulatory framework, strengthening its position as a digital financial hub in Asia. The Hong Kong Monetary Authority (HKMA) announced that new stablecoin regulations will take effect on August 1, with a licensing system for issuers expected to be implemented by the end of the year.
Source: HKMA
The first regulated stablecoins are expected to launch in the fourth quarter (as early as this summer), with companies that previously participated in the sandbox potentially becoming pioneers, making their progress worth watching.
The scope of digital financial services has also significantly expanded. The Securities and Futures Commission (SFC) plans to allow professional investors to trade virtual asset derivatives, and licensed exchanges and funds are permitted to offer staking 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 - Balancing Control and Protection
Source: MAS
In the second quarter, Singapore's cryptocurrency regulation has clearly shifted towards stricter measures. Most notably, the Monetary Authority of Singapore (MAS) has comprehensively prohibited unlicensed digital asset companies from operating locally, explicitly opposing regulatory arbitrage.
The new regulations apply to all domestic companies providing services to global users, effectively mandating formal licenses. Business registration is no longer sufficient to operate.
This change puts pressure on local Web3 companies. Businesses face a choice: either establish a fully compliant entity or relocate to regions with more lenient regulations. Although the policy aims to enhance market integrity and consumer protection, the restrictions on early cross-border projects are evident.
2.5. China: Internationalization of Digital RMB and Corporate Web3 Strategy
In the second quarter, China advanced the internationalization of the digital RMB, with Shanghai becoming the core battleground. The People's Bank of China plans to establish an international operations center in Shanghai to support cross-border applications of digital currency.
However, there is a disconnect between policy and practice. Despite a nationwide ban on cryptocurrency, local governments in places like Jiangsu have reportedly sold off confiscated digital assets to fill budget gaps, demonstrating a pragmatic attitude in contrast to central policies.
Chinese companies are also adopting flexible strategies. Logistics group AdanTex has begun to follow the example of Japanese companies in accumulating Bitcoin; other companies are using Hong Kong licenses to circumvent mainland restrictions and participate in the global Web3 market.
Interest in the renminbi stablecoin has also increased towards the end of the quarter. Concerns about the dominance of the US dollar stablecoin and the depreciation of the renminbi have led to more active discussions. On June 18, PBoC Governor Pan Gongsheng proposed a vision for constructing a multipolar global currency system, indicating an open attitude towards stablecoin issuance. On July, the Shanghai State-owned Assets Supervision and Administration Commission initiated discussions on the development of a renminbi stablecoin.
2.6. Vietnam: Legalization of Cryptocurrency and Strengthening Digital Control
Vietnam officially announced the legalization of cryptocurrencies in the second quarter, marking a significant policy shift. On June 14, the Vietnamese 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 cryptocurrency ban, positioning the country as a potential catalyst for widespread cryptocurrency adoption in Southeast Asia. Given Vietnam's previous restrictive stance, this move signifies a significant adjustment in regional cryptocurrency policy.
Meanwhile, the government has strengthened control over digital platforms. Authorities have ordered telecom operators to block Telegram on the grounds of fraud, drug trafficking, and terrorism. Police reports indicate that 68% of the 9,600 active channels on the platform are involved in illegal activities.
This dual approach, which legalizes cryptocurrencies while combating digital abuse, reflects Vietnam's intention to allow innovation within a strictly monitored framework. Although digital assets are now legally recognized, activities using them for illegal purposes are facing harsher enforcement actions.
2.7. Thailand: State-led Digital Asset Innovation
Thailand advanced its state-led digital asset program in the second quarter. The Securities and Exchange Commission (SEC) plans to allow exchanges to list their own functional tokens, relaxing previous strict listing rules.
Notably, the government has announced the issuance of digital bonds. On July 25, Thailand will issue $150 million worth of 'G-Tokens' through an approved ICO portal, and this token cannot be used for payment or speculative trading.
This initiative has become a rare case of direct public sector involvement in the issuance of digital assets, providing an early model for global tokenized finance.
2.8. Philippines: Strict Regulation and Innovation Sandbox in Parallel
In the second quarter, the Philippines implemented a 'regulation + innovation' dual-track strategy. The central bank and the Securities and Exchange Commission (SEC) enhanced control over token listings, significantly expanding VASP registration and anti-money laundering compliance requirements.
Notably, new regulations targeting influencers have emerged. Content creators promoting cryptocurrency assets must register with authorities, with violators facing up to five years in prison, making it one of the strictest enforcement regimes in the Asia-Pacific region.
An innovation support framework was also launched simultaneously. The Securities Commission has opened applications for the 'StratBox' sandbox program, providing a controlled testing environment for cryptocurrency service providers.
