The Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) was ordered into liquidation in late June after losing more than $3 billion over 2021 and 2022, making its collapse one of the largest hedge-fund trading losses of all time. The collapse may have shaken Singapore’s burgeoning cryptocurrency sector, but lawyers say that tighter scrutiny of the industry from the city-state’s authorities will ensure its sustainable growth.

In June, the Japanese parliament passed an amendment to Payment Services Act (PSA), which provides enhanced protections for crypto investors. While lawyers say that the legislation could help restore confidence in crypto, some worry the increased regulatory obligations might make it harder for newer players to enter.

South Korea’s cryptocurrency industry is anticipating much better times as the market regulator changes tack from its tough stance on the virtual coin trade, promising instead to help promote blockchain technology.