Asia's Evolving Crypto Landscape: Regulatory Shifts in 2025
Rongchai Wang Nov 21, 2025 05:54
Asia is advancing crypto regulations to balance innovation and oversight. Key changes in Hong Kong, Thailand, Malaysia, and South Korea aim to foster growth and investor protection.
As the digital asset market continues to expand, Asian countries are taking significant steps to redefine their regulatory frameworks. The IOTA Foundation, a key advocate for innovation-friendly regulation, is actively engaging with regulators across the region to support these transitions, according to the IOTA Blog.
Hong Kong's Stablecoin Framework
In June 2025, Hong Kong introduced a comprehensive stablecoin regime, emphasizing Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) measures. The Hong Kong Monetary Authority (HKMA) has proposed extending these controls to self-hosted wallets, a move that has sparked debate. The IOTA Foundation has recommended a more balanced approach, suggesting a risk-mitigation framework that preserves user privacy while ensuring compliance.
Thailand's Approach to COI Tokens
Thailand is revising its stance on Conflict-of-Interest (COI) tokens, which are issued by exchanges for internal use. The Securities and Exchange Commission (SEC) of Thailand is lifting the ban on these tokens, provided they meet strict disclosure and monitoring requirements. This change aims to facilitate innovation without compromising investor protection. The IOTA Foundation supports this move, advocating for transparency and robust monitoring over outright bans.
Malaysia's Liberalised Listing Framework
Malaysia is overhauling its digital asset exchange regulations with a new Liberalised Listing Framework. This initiative allows exchanges to list tokens without prior approval, provided they adhere to strengthened governance and capital requirements. The IOTA Foundation has called for adjustments to capital requirements and supports the development of a dedicated stablecoin framework to provide clarity and foster innovation.
South Korea's Inclusion of Virtual Assets
South Korea is integrating virtual asset firms into its venture-business ecosystem, allowing them to access venture financing and tax incentives. This policy shift recognizes the potential of blockchain and digital asset businesses to contribute significantly to the country's innovation economy. The IOTA Foundation endorses this move, highlighting the intersection of digital assets with AI and supply-chain applications as a growth opportunity.
Overall, these regulatory changes across Asia reflect a growing recognition of the need to balance innovation with investor protection. The IOTA Foundation remains committed to supporting the development of open, interoperable, and privacy-preserving solutions, aiming to build a trustworthy and transformative digital asset market.
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