Major Developments in Asian Crypto Regulation and Adoption
In a series of significant updates across Asia’s cryptocurrency landscape, South Korea has taken steps to regulate stablecoins, while China is embarking on an ambitious national blockchain project aimed for completion by 2030.
On October 23, the Monetary Authority of Singapore (MAS) announced that Bank Negara Malaysia and the Bank of Thailand will join Singapore’s BLOOM initiative. This cross-border digital currency initiative aims to enhance the efficiency of payment and settlement systems for regulated stablecoins and tokenized deposits. The effort also includes major participants like Ripple, Visa, and Mastercard, and will focus on cost reduction in cross-border transactions.
South Korea’s government plans to amend the Foreign Exchange Transactions Act to regulate stablecoins as payment instruments. The Bank of Korea reported on October 22 that it is working with the government to create a monitoring system to oversee crypto asset transactions. Concerns were raised regarding anonymous technologies that could facilitate illicit activities, prompting cooperation with authorities to avert potential regulatory evasion.
Effective December 2, the Bank of Korea will require service providers engaged in virtual asset transfers to report monthly holdings related to cross-border transactions. These reports must detail token quantities and KRW-equivalent balances, even in months without cross-border activities.
In Kazakhstan, the Astana Financial Services Authority has secured an injunction from the AIFC court prohibiting several crypto platforms, including Coinbase and Huobi Global, from operating without a license. The court ruling specifically applies to the Astana International Financial Centre and affects services directly provided to local users.
China’s Central Cyberspace Affairs Commission has introduced its 15th Five-Year Plan, proposing the establishment of a national blockchain network by 2030. The initiative aims to integrate blockchain technology across various sectors, including trade, government operations, and digital identity services.
In Hong Kong, Secretary for Financial Services Christopher Hui announced that the region is moving forward from pilot stages of asset tokenization to full-scale implementation. Recent digital green bond issuances were reportedly oversubscribed, and plans for a tokenized warehouse receipt financing pilot are set for next year.
HSBC has launched its stablecoin, HSBC RedCoin, aimed at more than 3.3 million users of its PayMe app, starting October 23. The initial phase allows instant transfers between users and payments to merchants, with a complete rollout planned to follow shortly.
In a different sector, Robinhood received approval from the Dubai Financial Services Authority to establish its headquarters in Dubai, with plans to launch investment products targeted at local retail investors in 2027.
Meanwhile, crypto trading platform MEXC announced it will cease services for users in Russia and Belarus to enhance compliance, ensuring that affected users’ assets remain secure.
Stay tuned for more updates as regulatory environments continue to evolve across Asia.
