Many Asian countries such as Vietnam, Singapore, and Thailand are taking positive steps to establish a comprehensive legal framework for the Bit sector.
With a large user base and an increasingly clear regulatory framework, Asia is emerging as a promising region for the industry by 2025.
Overview of Bit Regulations in Asia
Several Asian countries, including Malaysia, Thailand, Japan, South Korea, and Vietnam, are reviewing changes and issuing policies related to Bits. Hong Kong and Singapore are leading the way in establishing clear legal frameworks to attract investment and innovation.
Recently, Vietnam has been accelerating its efforts to finalize a legal framework by the end of March.
Specifically, the Monetary Authority of Singapore (MAS) has recently granted "Major Payment Institution—MPI" licenses related to digital payment tokens to 30 companies. The country's regulatory framework balances innovation and consumer protection to ensure a safe and responsible Bit ecosystem.
Meanwhile, Hong Kong has issued "Virtual Asset Trading Platform Licenses" to 10 companies. In mid-2023, Hong Kong will revise the legal framework for Bit exchanges, assigning the Securities and Futures Commission (SFC) the responsibility for review and licensing. This country is accelerating Bit licenses through the approval of 4 new exchanges.
Another emerging country in the Asian region, Vietnam, has requested the Ministry of Finance to urgently finalize a pilot resolution to regulate activities related to virtual and tokenized assets by March 13, 2025.
"Complete the documents for the pilot resolution to manage activities related to virtual assets and tokenized assets and report to the Standing Government before March 13, 2025." The official statement of the Vietnamese government was released.
Furthermore, Thailand has recently approved and allowed domestic trading of USDT. The updated regulations to increase the flexibility of the digital asset business will take effect on March 16, 2025.
"USDT has been officially approved in Thailand," said the CEO of Tether in a statement.
Asia's Potential in the Bit Sector
According to data from Electric Capital, Asia is the top continent in terms of Bit developer ratio. North America has fallen from first to third place. The United States has decreased from 38% in 2015 to 19%, but it is still the leading country.
According to data from Triple-A, several Asian countries are currently leading in Bit ownership rates. Singapore tops the list, followed by Thailand, Vietnam, Malaysia, and Hong Kong.
While Singapore and Hong Kong have made significant progress, some countries still lack a unified legal framework. This fragmentation makes regional cooperation difficult and prevents the prevention of illegal activities such as money laundering.
A clear legal framework will attract more global companies to Asia. The case of El Salvador is an example of Tether relocating its headquarters to take advantage of a favorable legal environment.
However, a fully developed legal environment creates barriers for smaller or less transparent projects. Projects like the Pi Network have been criticized by Bybit CEO Ben Zhou as "more risky than meme coins," raising concerns about transparency. The Singapore Home Affairs Minister warned citizens to avoid Bits.
If successful, Asia could become a global Bit hub, surpassing the United States and Europe, thanks to progressive regulations and a dynamic market.
