Asia’s Crypto Shift: Stablecoins and New Rules

Asian regulators and financial institutions introduced new crypto measures this week, with stablecoins and digital asset oversight taking center stage. Malaysia, Thailand, South Korea, Russia, Japan, Kyrgyzstan, and China reported policy updates affecting digital assets, settlement systems, and enforcement standards.

Bank Negara Malaysia launched pilot programs under its Digital Asset Innovation Hub. The projects will test ringgit-pegged stablecoins, tokenized bank deposits, and tokenized real-world assets. The central bank will also study cross-border settlement use cases. Officials said findings may support future wholesale central bank digital currency design. Participating institutions include Standard Chartered Bank, CIMB Group, Malayan Banking Berhad, and Capital A.

Thailand and South Korea Tighten Market Rules

Thailand approved amendments to its Derivatives Act to allow digital assets as underlying instruments for regulated derivatives. The countrys Securities and Exchange Commission said the move will “promote more inclusive market growth, facilitate diversified and more effective risk management, and expand investment opportunities.” Authorities will update licensing rules and coordinate with the Thailand Futures Exchange on contract standards.

South Koreas Financial Supervisory Service released its 2026 work plan outlining investigations into virtual asset market manipulation. The agency will focus on “whale” activity, API-based order tactics, and false information spread through social media. Regulators plan to use AI tools to detect abnormal price surges and prepare for the next stage of the Digital Asset Basic Act.

Russia Defines Crypto as Property

Russias State Duma passed a law in its third reading that formally recognizes cryptocurrency as property. The legislation sets rules for seizure and confiscation in criminal cases. Authorities must document asset type, amount, and wallet identifiers during enforcement procedures.

The law allows cooperation with foreign exchanges when carrying out seizure actions. Where possible, seized assets may transfer to a designated state wallet. The bill awaits final approval before entering into force.

Japan, Kyrgyzstan and China Expand Blockchain Use

Japans Nomura Holdings and Daiwa Securities will work with Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group to develop stablecoin-based securities settlement. The initiative targets continuous blockchain-based settlement, with pilot programs scheduled after regulatory notification.

Kyrgyzstan reported that crypto transactions exceeded $20.5 billion in 2025, generating $22.8 million in tax revenue. Authorities confirmed crypto taxes surpassed collections from Dordoi Bazaar and patent taxes combined. Chinas State Council also called for full blockchain adoption in green power certification to ensure end-to-end traceability of electricity production and consumption.