Asia's weekly TOP10 crypto news: South Korea Regulates Stablecoins as Payment Means, China to Build National Blockchain Network, HSBC Launches Stablecoin and Top10 News - Substack

South Korea is moving to regulate stablecoins as payment instruments through amendments to its Foreign Exchange Transactions Act, which the government and Bank of Korea plan to draft by the end of this year. The central bank reported to the National Assembly on October 22 that it's negotiating regulatory frameworks for cross-border crypto transactions and preparing to establish a crypto asset monitoring system via the foreign exchange information system.

The Bank of Korea will require virtual asset transfer service providers starting December 2 to submit monthly reports on users' cross-border crypto holdings, even for dormant accounts. These reports must include token quantities, KRW-equivalent balances, and total cross-border inflows and outflows, with submissions due by 17:30 on the 10th of the following month.

China's Blockchain Network

China has announced plans to build a basic national blockchain network by 2030 through its 15th Five-Year Plan for National Informatization. The Central Cyberspace Affairs Commission's plan aims to create a national blockchain network construction project to lay the foundation for the Value Internet, including accelerating completion of the central backbone network and improving decentralized digital identity services.

The plan also calls for developing the digital renminbi, applying blockchain in data circulation, and promoting interconnected decentralized digital identities. China aims to cultivate internationally leading technological products in integrated circuits, artificial intelligence, and blockchain fields.

Regional Developments

The Monetary Authority of Singapore announced that Bank Negara Malaysia and the Bank of Thailand have joined the BLOOM cross-border digital currency initiative, which now includes Ripple, Visa, Mastercard, Airwallex and the World Bank Group. The initiative focuses on researching cross-border settlement and interoperability of different payment networks.

Hong Kong's fourth issuance of digital green bonds was oversubscribed, with tokenised Hong Kong dollar deposits integrated into settlement workflows. The Hong Kong Exchanges and Clearing aims to launch a tokenised warehouse receipt financing pilot next year.

Thailand's SEC confirmed no formal applications for spot crypto ETFs have been received, though multiple asset management institutions have consulted on Bitcoin and Ethereum ETFs. The new framework allows licensed companies to launch passive ETFs tracking single qualified assets with 80% minimum allocation.

Institutional Adoption

HSBC launched the Hong Kong dollar stablecoin RedCoin on October 23 for over 3.3 million PayMe users, with plans to fully integrate it into its Hong Kong mobile banking app by year-end. The stablecoin will support instant transfers and payments to merchants initially, with future expansion to tokenised money market funds and gold.

Robinhood obtained authorization from the Dubai Financial Services Authority and designated the Dubai International Financial Centre as its Middle East headquarters, planning to launch investment products for local retail investors in 2027. The authorization covers trading and custody services for all ten classes of assets approved by the DFSA.

Compliance Actions

The Astana Financial Services Authority obtained an injunction prohibiting six crypto platforms, including Coinbase and Huobi Global, from providing services within the Astana International Financial Centre without a license. The ruling applies only to the AIFC, not nationwide across Kazakhstan.

Crypto trading platforms MEXC and HTX have added Russia and Belarus to their prohibited service jurisdictions, following similar moves by Bitget. MEXC will discontinue services for users in these countries while ensuring their assets remain secure, with specific deadlines for position closures and withdrawals.