Asia experienced rapid shifts in the crypto market this week. South Korea’s new president, Lee Jae-myung, backed crypto ETFs and stablecoins. He promised to reduce regulations in blockchain zones and push forward the country’s second-stage crypto laws.
He proposes to retain wealth in nations and raise openness. Singapore’s monetary authority has rolled out fresh rules on digital tokens. It points out that only payment tokens and capital market tokens require licenses, while utility tokens and governance tokens fall outside the scope.
The regulator began reaching out to affected parties to aid them in transitioning from non-compliant practices. Hong Kong progressed with cryptocurrency derivatives. The local regulator suggested allowing such markets for professional investors only.
The government also hinted at tax breaks for virtual asset transactions. More policy updates are expected soon. Japan has new cryptocurrency regulations. The crypto intermediaries have been regulated under the new law.
UAE introduces Financial Influencer License
These businesses can operate without registering as full exchanges. The government can now also require platforms to store assets in the country to protect users. The UAE launched the region’s first influencer license.
It permits influencers to advise on financial products but is overseen by the state.
The license is free for three years to encourage early adoption. China cracked down on illegal crypto transfers. Authorities solved three money laundering cases connected to HyperLiquid.
Criminals used a leveraged trading loophole to lock away money and make movements in the market. India stood its ground. The Reserve Bank reiterated its worries over the dangers posed by cryptocurrencies. There are no new laws from the government yet after a court ruling that bans are impractical.
Asia’s shifting crypto Strategy Landscape
Former Bank of China official Wang Yongli isn’t waiting. He said an offshore RMB stablecoin based in Hong Kong would further boost the yuan’s use overseas and help China join the stablecoin race. Japan’s Metaplanet made a big announcement.
It will raise more than $5 billion in equity to buy Bitcoin. The company aims to own 1% of the world’s Bitcoin supply by 2027. It currently holds almost 9,000 BTC. Meitu’s crypto adventure is over. The firm sold all its assets last year and booked huge profits.
Yet the CEO mentioned that such a decision was stressful. Fluctuations in Bitcoin made their stock prices volatile, thus hurting long-term Value. These changes reflect that Asia’s crypto market is growing rapidly but with instability. Some governments embrace innovation, while others are simply cautious.
