Q2 2025 Review of the Asian Web3 Market: Policy Implementation and Practical Progress

Key Points Overview

• Regulatory Environment: Hong Kong will implement stablecoin legislation in August, Singapore is tightening its licensing system, and Thailand is launching government digital bonds.

• Corporate Dynamics: Japanese listed companies are stirring up a Bitcoin investment boom, while Chinese enterprises are adopting pragmatic strategies to enter the global Web3 market through Hong Kong.

• Policy Changes: South Korea focuses on stablecoins supported by the Korean won, Vietnam achieves full legalization of cryptocurrencies, and the Philippines adopts a dual-track strategy of regulation and innovation.

1. Overview of the Asian Web3 Market in the Second Quarter

Despite the global Web3 market shifting its focus to the United States, the development of major markets in Asia remains a point of attention. Asia not only has the largest cryptocurrency user base in the world but is also an important hub for blockchain innovation.

In the first quarter of 2025, regulators across Asia laid the groundwork by introducing new legislation, issuing licenses, and launching regulatory sandboxes. In the second quarter, these regulatory foundations facilitated substantial business activities and accelerated capital allocation. The policies introduced in the first quarter were tested in the market, continuously improved, and implemented more effectively. The participation of institutions and enterprises significantly increased.

2. Details of Major Market Developments in Asia

2.1 South Korea: Political Reform and Regulatory Adjustment

In the second quarter, cryptocurrency policy became a hot topic in South Korea's presidential election in June. With Lee Jae-myung's victory, the market expects a significant shift in policy.

Launching a Korean won-pegged stablecoin has become one of the core topics. Related stocks have surged, and traditional financial institutions are also beginning to apply for Web3-related trademarks.

However, there were some conflicts during the policy-making process, the most prominent of which was the dispute over jurisdiction between the Bank of Korea and the Financial Services Commission (FSC). In July, the Democratic Party announced that the introduction of the "Digital Asset Innovation Act" would be postponed by one to two months.

Nevertheless, the gradual improvement at the institutional level is still ongoing. In June, new regulations allowed non-profit organizations and exchanges to sell donated cryptocurrency assets, requiring that the sales be conducted in a manner that minimizes market impact.

Throughout the second quarter, interest in Korea remained strong in the market. Global exchanges demonstrated sustained investment, and offline events also saw a significant recovery.

2.2 Japan: Institutions and enterprises promote Bitcoin strategic expansion

In the second quarter, Japanese listed companies have launched a wave of Bitcoin adoption, primarily driven by MetaPlanet. Other companies like Remixpoint have followed suit, allocating their own Bitcoins.

Progress has also been made in the construction of stablecoins and payment infrastructure. Sumitomo Mitsui Financial Group has begun preparations for the issuance of stablecoins, and Mercari's cryptocurrency subsidiary Mercoin has started supporting XRP trading.

Regulatory discussions continue, and the Financial Services Agency (FSA) of Japan has introduced a new classification system for crypto assets. However, most of these regulatory updates are still in the discussion stage.

The participation of retail investors remains sluggish, in stark contrast to markets like South Korea. Japan's institution-led investment model offers greater stability but may limit short-term growth momentum.

2.3 Hong Kong: Expansion of Regulated Stablecoins and Digital Financial Services

In the second quarter, Hong Kong improved its regulatory framework for stablecoins, consolidating its position as Asia's leading digital financial center. The Hong Kong Monetary Authority announced that the new stablecoin regulatory legislation will take effect on August 1, and a licensing system for stablecoin issuers is expected to be introduced by the end of the year.

The first batch of regulated stablecoins is expected to be launched in the fourth quarter. The Securities and Futures Commission (SFC) announced plans to allow professional investors to trade virtual asset derivatives, and licensed exchanges and funds are permitted to provide staking services.

These developments reflect the intention of regulators to establish a more comprehensive and institution-friendly digital asset ecosystem.

2.4 Singapore: Regulatory tightening

In the second quarter, Singapore took significant tightening measures in cryptocurrency regulation. The Monetary Authority of Singapore (MAS) has imposed a complete ban on unlicensed digital asset companies conducting business overseas, indicating its strong opposition to regulatory arbitrage.

The new regulations apply to all entities providing digital asset services to global users in Singapore, effectively mandating the formal issuance of licenses. This has put increasing pressure on local Web3 companies, which are faced with the choice of establishing fully compliant operational entities or relocating to more lenient jurisdictions.

2.5 China: Internationalization of Digital Renminbi and Enterprise Web3 Strategy

In the second quarter, China promoted the internationalization of the digital renminbi, with Shanghai becoming the center of this work. The People's Bank of China announced plans to establish an international operation center in Shanghai to support the cross-border application of digital currency.

However, there is still a gap between official policies and actual operations. Some local governments have liquidated confiscated digital assets to cover fiscal shortfalls, demonstrating a pragmatic approach that differs from the official stance.

Chinese companies have also demonstrated a similar pragmatic spirit. Some companies are increasing their Bitcoin holdings, while others are leveraging Hong Kong's licensing system to bypass mainland restrictions and enter the global Web3 market.

Interest in RMB-pegged stablecoins is also growing in the market. On June 18, Yi Gang, the governor of the People's Bank of China, publicly articulated the vision for building a multipolar global currency system. In July, the Shanghai State-owned Assets Supervision and Administration Commission initiated discussions on the research and development of RMB-pegged stablecoins.

2.6 Vietnam: Legalization of Cryptocurrency and Strengthening Digital Regulation

Vietnam officially announced the legalization of cryptocurrencies in the second quarter, marking a significant policy shift. On June 14, the National Assembly of Vietnam passed the "Law on Digital Technology Industry", recognizing digital assets and outlining incentives for related sectors.

At the same time, the government has strengthened its control over digital platforms, ordering telecommunications operators to block Telegram. This dual approach reflects Vietnam's intention to allow innovation within a strictly monitored scope.

2.7 Thailand: State-led digital asset innovation

In the second quarter, Thailand advanced government-led initiatives in the digital asset sector. The Securities and Exchange Commission (SEC) of Thailand is reviewing a proposal to allow exchanges to list their own utility tokens.

It is worth noting that the Thai government has announced plans to issue digital bonds in the country. On July 25, Thailand will issue "G-Tokens" through an approved ICO platform, with a total scale of $150 million. This move is a rare example of direct government participation in the issuance of digital assets.

2.8 Philippines: A Dual System of Strict Regulation and Innovation Sandbox

In the second quarter, the Philippines implemented a dual-track strategy that combines strengthening regulation with supporting innovation in the cryptocurrency sector. The government has imposed stricter controls on token listings, while registration and anti-money laundering compliance requirements for Virtual Asset Service Providers (VASP) have also been significantly relaxed.

A particularly notable initiative is the introduction of influencer regulation rules. Content creators promoting cryptocurrency assets must now register with the relevant authorities.

In addition, the government has launched a framework to promote innovation. The U.S. Securities and Exchange Commission (SEC) has begun accepting applications for "StratBox," a sandbox program designed to provide a controlled regulatory environment for cryptocurrency service providers.