The legal industry across Asia is looking ahead to major regulatory changes in 2025, primarily focusing on technology, financial services, and cross-border trade. Key developments to watch include China's tightened securities framework, Hong Kong's financial hub evolution, and India's economic expansion, even as sectors like AI, digital assets, and ESG drive regulatory attention amid growing geopolitical tensions.
CHINA
The legal industry in the People’s Republic of China is bracing for tightened securities regulatory framework and evolving international trade relationships that target strategic industries.
Jianhai Luan, partner at Commerce & Finance Law Offices in Beijing, highlights the intensifying regulatory environment in securities law, including the implementation of revised Management Measures and new regulatory frameworks.
"The legal industry, especially the securities sector, will face strong regulatory pressure this year. Regulatory agencies will continue to explore new regulatory models, as well as regulatory measures and inspection methods will become more normalised and comprehensive," notes Luan.
As a result of tighter regulatory and compliance requirements, Luan predicts a period of consolidation of the legal marketplace. “The increased costs may cause some law firms to integrate or optimise their business, and to some extent, leading to a round of survival of the fittest among lawyers and law firms engaged in securities legal business,” says Luan, who believes this trend could be “ultimately beneficial” to standardising industry practices and standards.
Looking at broader economic developments, partner Xinggao Pan anticipates significant shifts in international trade dynamics driven by rising geopolitical tensions between China and the United States.
"With U.S. President Donald Trump returning to power in 2025 and the introduction of some new trade policies, in particular of the restrictions on China in the field of chip semiconductor technology, the trade war between China and the U.S. will be further intensified, which may have a profound impact on the economic and industrial chain restructuring of China and the U.S. and even the world," says Pan.
However, Pan sees opportunities for regional cooperation especially through the China-ASEAN Free Trade Area 3.0., noting that "the main obstacles to free trade between China and ASEAN have shifted from tariff barriers to service trade supervision and non-tariff barriers.”
On the bright side, Pan emphasises emerging opportunities in green trade cooperation, particularly in sectors like "new energy vehicles, photovoltaic, and battery products," alongside digital trade initiatives. (SW)
HONG KONG
As Hong Kong continues to solidify its position as a global financial and technological hub with a closer connection to mainland China, the legal service industry is poised to play a vital role in shaping the city's future.
In the financial services sector, regulatory updates and evolving market dynamics are driving significant transformation. “The implementation of Basel III revisions will introduce stricter capital adequacy and liquidity requirements, pushing banks to strengthen compliance frameworks,” says Brett Stewien, partner at GPS Legal.
Simultaneously, the expansion of the Mutual Recognition of Funds scheme between Hong Kong and Mainland China is expected to enhance cross-border investment opportunities, particularly for environmental, social and governance (ESG)-focused products, Stewien notes.
The SAR government is also expected to continue its efforts to bolster Hong Kong's technological development and foster innovation. A major step in this direction is the opening of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone.
However, while this initiative is expected to drive growth and innovation, “businesses operating in the zone will face legal challenges related to intellectual property protection, cross-border data sharing, and differing regulatory standards,” Stewien cautions.
Meanwhile, there are new movements anticipated in the dispute space especially in the construction industry, with the Construction Industry Security of Payment Ordinance set to come into effect in August this year.
"This legislation will have a profound impact on the construction industry, introducing a mandatory rapid adjudication process for resolving payment disputes,” says Tom Fu, partner at JSM. This will require industry participants to adapt to new regulatory requirements and navigate the complexities of the adjudication process.
Looking ahead, the use of AI in legal practices is expected to become increasingly prevalent, and Fu anticipates that this trend will be governed by new legislation in Hong Kong. This may include strengthening regulations regarding client data privacy and establishing professional standards for the ethical use of AI by legal professionals. (SW)
INDIA
As India pursues its $5 trillion economy goal, its regulatory environment is evolving rapidly, creating new opportunities in AI, manufacturing, and infrastructure while tightening compliance in data protection, financial regulation, and ESG.
Avimukt Dar, founder of IndusLaw, identifies key regulatory focus areas: "Data privacy, artificial intelligence, agriculture, civil aviation, offshore (GIFT City) and onshore AIFs."
A comprehensive data privacy framework is at the top of the the regulatory agenda. “This far-reaching legislation will not only impact tech players but also sectors such as real estate retail and pretty much any business which collects significant amounts of personal data in the ordinary course of business,” explains Dar.
Agricultural reform remains another key focus area, with the government preparing for another attempt at reform following the repeal of contentious farm laws in 2021. Proposed changes aim to boost market access and private investment in the sector.
India is also considering liberalisation of its stance on foreign investments from neighbouring countries, particularly China. “There is an expectation that FDI may be reopened from a China perspective and Press Note 3 may be liberalised over the course of the year,” Dar says. This could open new avenues for foreign capital, injecting fresh momentum into various sectors like manufacturing and technology while balancing national security considerations.
India’s strong domestic participation in capital markets, makes it less vulnerable to global shifts and consequently more attractive to international financial institutions. This trend is likely to continue into 2025, despite an anticipated year-end market downturn that may persist through the first half of the year. Aligned with this ‘going-public’ trend is a slew of reverse flips into India, reduction in regulatory timelines, and increased use of technology by regulators.
One can expect a significant uptick in both AI infrastructure as well as virtual digital assets, adds Dar. “The former because generative AI will be transformative across all industries and the latter due to the resilience of these assets and the changes currently happening in the US administration,” says Dar.
The electric vehicle sector is set for rapid growth as well, propelled by the government's ambitious target of achieving 30 percent EV sales by 2030. This growth extends to the entire EV ecosystem, including battery manufacturing and charging infrastructure, although concerns around U.S. President Trump’s stance on renewable energy may bring about increased cautiousness.
Lastly, potential interest rate cuts, post-election government spending, and increased private sector investment are expected to boost economic momentum and corporate earnings. (ND)
INDONESIA
Indonesia is poised for significant regulatory transformation in 2025, driven by its ambitious 2025-2029 National Medium-Term Development Plan (RPJMN) and a wave of new legislation across key sectors, particularly infrastructure, renewable energy and technology.
“The government's strategic focus is on optimising regional potential and driving economic growth through targeted legislative and regulatory initiatives,” says Ibrahim Sjarief Assegaf, managing partner at Indonesian law firm Assegaf Hamzah & Partners.
A key item on the regulatory agenda is the long-anticipated Draft Bill on New and Renewable Energy (RUU EBET), introducing crucial provisions for domestic component requirements and power wheeling schemes. “These provisions aim to facilitate stakeholder participation and promote the development of a diverse renewable energy mix in Indonesia,” Assegaf notes.
In the financial sector, derivative regulations from Law No. 4 of 2023 on Financial Sector Development and Strengthening (UU PPSK) are expected to reshape the regulatory framework. Parallel to this, the government is finalising critical data protection regulations, including the Government Regulation on Personal Data Protection (RPP PDP), which will introduce stringent compliance requirements for businesses handling personal data.
“Once finalised, the RPP PDP will have significant implications for businesses handling personal data, requiring them to comply with stringent data protection standards,” Assegaf says.
The government's downstream processing (hilirisasi) initiative remains central to its economic strategy, Assegaf notes, adding that new regulations are expected to mandate and incentivise domestic processing across mining, agriculture, and forestry sectors. This push aligns with Indonesia's broader goal of moving up the value chain in natural resource industries.
The digital economy is set for continued regulatory attention, with new frameworks emerging for data protection, e-commerce, and digital infrastructure development. A notable development is the introduction of specific regulations for protecting children's data in electronic systems, reflecting the government's commitment to digital safety.
Manufacturing and digital sectors are expected to see increased activity, particularly in e-commerce, fintech, and cloud computing. The mining and energy sectors, especially nickel production for EV batteries, are also poised for significant growth, while the textile industry may face headwinds from import competition. (ND)
JAPAN
In 2025, Japan's legal market is bracing for new regulations reshaping corporate governance, technology adoption, and industry practices.
Ryuichi Nozaki, partner at Atsumi & Sakai, highlights pivotal changes in disclosure rules for listed companies regarding changes in how corporations categorise their holdings of other companies' shares from strategic purposes to pure investment purposes, as well as the identity of shareholders.
“New regulations will require more transparency on identification of the ultimate investors (rather than investing behind the names of trust banks and nominee custodians) and investing through total return swaps, which is expected to improve shareholder dialogues for better corporate governance by requiring transparency on the investors’ side as well,” explains Nozaki.
This shift aims to improve capital allocation and strengthen corporate governance, putting pressure on companies to dispose of non-profitable assets. In addition, “a bill of amendments to the Companies Acts is expected to be introduced to allow Japanese corporates to use their treasury shares as consideration for acquisition of foreign companies,” Nozaki adds, which could potentially revolutionise companies’ M&A strategies.
Technology regulation is emerging as a crucial focus area. Masataka Ogasawara, representative attorney at ZeLo, emphasises the transformative impact of AI on legal services. “While the creation of guidelines for the use of generative AI and issues related to intellectual property rights have been challenged before, they are expected to become more prominent in 2025 due to recent penetration into daily life,” says Ogasawara.
Nozaki, on the other hand, expects a measured approach to AI regulation, citing the amendments to the Patent Act to address patents for inventions made using AI. He notes that that the upcoming bill will grant government investigative powers over AI-related issues like deepfake fraud and biased content generation, though fall short of imposing strict sanctions.
In the digital asset space, Ogasawara anticipates substantial changes. “Cryptocurrency tax framework reforms could transform Japan's digital asset environment,” he says. Meanwhile, the mobility sector faces new regulations on emissions and driving assistance systems, creating opportunities in green finance, adds Ogasawara. (SW)
SINGAPORE
Singapore is gearing up for a slew of regulatory changes in 2025, with reforms spanning workplace fairness, digital infrastructure, and financial security, even as the city-state strengthens its enforcement stance amid increasing regulatory scrutiny.
The most important regulatory focus area for Singapore in 2025, according to Lauren Tang, managing partner at Virtus Law, Stephenson Harwood’s Singapore alliance firm, will be in the technology and AI sectors, “given the increased reliance of businesses on technology and technology's ability to severely disrupt businesses.”
Consequently, the digital sector stands at the forefront of regulatory attention, with the anticipated Digital Infrastructure Act set to reshape cybersecurity standards in 2025. This legislation aligns with Singapore's Smart Nation 2.0 initiative and its target to triple the AI workforce from 5,000 to 15,000 practitioners within the next three to five years.
“We expect this trend to reflect similarly in the legal industry, such that we will see more AI focused lawyers,” notes Tang.
Singapore is also taking a leading role in AI governance, building upon its AI Governance Framework that came out in 2024. Key focus areas include ensuring AI systems are explainable, transparent, and fair, while promoting innovation and protecting consumers.
The financial sector faces heightened oversight following a consistent upward trend in regulatory fines. From a modest $748,693 in 2021, penalties have risen significantly, reaching $3,281,066 in 2024 - marking a 22 percent increase from 2023. The focus has been particularly sharp on AML/KYC breaches ($1.84 million) and Transaction Monitoring violations ($1.43 million) in 2024.
This enhanced enforcement approach aligns with the implementation of the Anti-Money Laundering and Other Matters Act, following Singapore's largest-ever money laundering case involving assets of nearly $3 billion. The National AML Strategy, launched in October 2024, further strengthens this regulatory framework.
“We expect that the remaining provisions of the Anti-Money Laundering and Other Matters Act to come into force in 2025 and beyond,” Tang observes.
On the employment front, the Workplace Fairness Bill, passed in January 2025, introduces comprehensive protections against discrimination across various protected characteristics. “It is intended that a subsequent bill will be introduced to provide for the procedural rights and processes for individuals to make private claims under the Workplace Fairness Bill,” Tang says. (ND)
SOUTH KOREA
South Korea stands at the crossroads of major regulatory transformation in 2025, signifying a fundamental shift in how Korea approaches technological innovation, digital assets, and market competition.
On AI regulations, the implementation of the Framework Act on Artificial Intelligence introduces comprehensive regulations for AI operators, with penalties up to KRW 30 million ($20,766) for non-compliance with the obligation to notify AI violation of a corrective order, or failure to appoint a domestic agent.
“The main provisions of the AI Act are largely divided into two parts: (1) the establishment of a national support system for the promotion of AI technology and related industries, and (2) the imposition of specific obligations on AI operators (particularly those involved in ‘high-impact AI’ and ‘generative AI’),” explains Joonki Yi, managing partner at Bae, Kim & Lee.
Also, further liberalisation is expected in Korea's virtual asset landscape. "The Financial Services Commission's 2025 business plan includes gradually opening the virtual asset market to corporations, which is considered to be a significant change that can bring about quantitative and qualitative growth in the Korean virtual asset market," Yi notes. This change could transform the market's scale and sophistication, aligning with global regulatory trends in the U.S. and Europe.
Furthermore, the Korea Fair Trade Commission's 2025 Operational Plans signal intensified regulatory oversight, particularly in platform economics. Yi highlights upcoming legislation targeting "anti-competitive practices by platform giants across six service sectors," including search engines, SNS, and advertising.
Additionally, amid rising global protectionism, Korea anticipates an increase in trade remedy cases, especially with the return of the Trump administration policies. “Governments worldwide, including Korea, are likely to leverage protectionist tools such as anti-dumping duties, countervailing measures, and safeguards,” Yi adds.
Looking ahead, Yi identifies AI, virtual assets, and supply chain-driven M&A as key growth sectors. "The combination of domestic restructuring needs and international trade tensions will create both challenges and opportunities," he concludes. (SW)
UNITED ARAB EMIRATES
The United Arab Emirates is embarking on its most ambitious regulatory overhaul in a decade, with 2025 marking a pivotal year in its transformation from regional hub to global financial powerhouse. Following an unprecedented wave of over 200 amendments to federal laws and decrees in 2023-2024, the nation's legislators are targeting infrastructure needed to compete with established international financial centres.
"Most of the amendments are progressive, designed to facilitate both local and federal governments in attracting investors, encouraging foreign investments, and positioning the UAE as a strong international competitor," says Essam Al Tamimi, chairman of top UAE law firm Al Tamimi and Company.
Regulatory frameworks for cryptocurrency, fintech, and cross-border digital trading top the government's agenda. The central bank is expected to introduce comprehensive oversight mechanisms that could reshape the Gulf's approach to digital assets, while addressing technological disruptions in bitcoin trading and digital commerce.
"It is likely that the UAE federal government and the central bank will focus on creating balanced regulations and frameworks to support the growth of businesses in the UAE, as well as the protection of consumers, which will need to be regulated side by side," says Al Tamimi.
Financial crime prevention has emerged as a critical priority, with new anti-money laundering legislation expected to align with global standards. This push comes as the UAE faces increased scrutiny from international financial watchdogs and seeks to solidify its position as a trusted global financial hub.
A sweeping modernisation of the judicial system forms the backbone of these reforms. "The judicial system is at the top of the UAE legislator's agenda to ensure it is enhanced, improved, and embraces technology. The legislator recognises that the judicial system is one of the key factors in attracting foreign investment and maintaining continuous stability," Al Tamimi explains.
The expected implementation of corporate tax - a significant departure from the UAE's traditional tax-free status - will see additional regulations in 2025 to ensure alignment with international double taxation treaties, while new legislation is expected to make both onshore and offshore stock market listings more attractive to foreign companies.
"In general, the UAE is no longer content with being a local or regional player. With its ambition to become an international player in investment and attracting investments in key business sectors, the introduction of legislation will go hand in hand,” Al Tamimi notes. (ND)
