Web3 Regulation and Development: The Reshaping of the Asian Ecosystem Behind the Hong Kong-New Competition

Recently, a heated discussion has emerged in the Asian Web3 space regarding regulation and development. The core of this debate revolves around which city will become the new center for cryptocurrency technology and innovation in Asia.

On May 30, the Monetary Authority of Singapore (MAS) suddenly announced a series of strict new regulations for Web3, drawing widespread attention from the industry. These regulations require all institutions and individuals engaged in cryptocurrency-related businesses to obtain a DTSP license by June 30, or they will be forced to cease operations. This policy covers trading platforms, wallet service providers, DeFi protocols, NFT markets, and even opinion leaders who publish cryptocurrency research content.

The three main features of the new regulations have sparked heated discussions in the industry: immediate implementation with no transition period; comprehensive coverage of all digital asset service providers; and a zero-tolerance approach to violations. In particular, the expanded definition of "business premises" has left many entrepreneurs feeling confused.

Although the Monetary Authority of Singapore subsequently issued a supplementary statement attempting to clarify some misunderstandings, this did not materially change the strictness of the regulation. This policy adjustment indicates that Singapore is shifting from a past "open experimentation" approach to a "risk prevention first" regulatory strategy. This transition may challenge Singapore's status as the "crypto paradise of Asia," and many startup projects may face high compliance costs or be forced to relocate.

At the same time, Hong Kong is embracing Web3 technology in a more flexible manner. Since the release of relevant policy declarations in 2022, Hong Kong has implemented a series of supportive measures, including virtual asset trading platform licenses and stablecoin regulatory provisions. Currently, several virtual asset trading platforms have obtained licenses and are allowing retail investors to participate in trading.

Hong Kong has also made significant progress in areas such as the tokenization of physical assets, virtual asset staking, and derivatives pilot programs. For example, in April of this year, the world's first tokenized money market ETF was launched in Hong Kong, becoming the largest virtual asset ETF market in the Asia-Pacific region. In addition, Hong Kong has provided numerous supportive policies in areas such as corporate introduction, tax incentives, and talent recruitment.

However, viewing Hong Kong simply as a new "crypto hub" may be premature. Despite Hong Kong's positive attitude, it still faces challenges in policy implementation, infrastructure development, and tax regulations. For entrepreneurs, choosing Hong Kong may feel more like a second-best option after weighing their choices, rather than the best solution.

In the long run, the roles of Singapore and Hong Kong may diverge: Singapore may become a compliance asset management center, while Hong Kong may take on the role of a technology testing ground and an Asian capital hub.

For Web3 entrepreneurs, the key is not which city to choose, but to maintain a keen insight into policy changes, regulatory trends, and market opportunities. In this ever-changing industry, a true "safe haven" does not only exist in geographic location, but also in the decision-making wisdom and adaptability of each team.