Latest updates from Asia's crypto landscape featuring Russia's digital currency law and Japan's new crypto-stablecoin division.
In the rapidly evolving landscape of cryptocurrency and blockchain technology, Asia remains at the forefront with significant regulatory and operational developments. This week's top stories highlight pivotal movements, including major laws enacted by Russia and new divisions formed in Japan's financial regulatory bodies. Let's delve into the details of these developments and other critical news from the region.
Russian President Vladimir Putin has officially signed Federal Law №282-FZ, which addresses digital currencies and digital rights. This law, which will come into effect in phases starting September 1, includes provisions for non-qualified investors seeking to purchase cryptocurrency.
Under the new regulations, these investors can buy crypto assets valued at no more than 300,000 rubles per year, but must do so through a licensed intermediary after passing a risk assessment. This adds a level of regulatory oversight to the market, as cryptocurrency exchanges, brokers, custodians, and exchangers will now operate under the supervision of the Central Bank of Russia.
The law creates a transition period until July 1, 2027, during which time all crypto asset transactions are expected to be conducted through licensed institutions or banks. This strategic move aims to create a more structured and legally compliant cryptocurrency market in Russia.
In addition, the Moscow Exchange is in the process of developing a separate digital asset custody platform. According to reports from various brokerage sources, this digital depository institution is expected to launch by late 2026 or early 2027.
This facility will act independently of the Moscow Exchange’s current trading systems and the National Settlement Depository (NSD), marking a significant shift in the operational landscape for crypto assets in the nation. The recently adopted law governing digital currencies stipulates that regulatory requirements for such institutions will begin to take effect alongside Putin's law.
With the establishment of this platform, Russia's emerging legal cryptocurrency market might see a proliferation of liquidity hubs, potentially including entities like Sberbank of Russia, as the country adjusts to its new regulatory environment.
Shifting our focus to Japan, the Financial Services Agency (FSA) has announced the formation of a new division dedicated to crypto assets and stablecoins. Effective from August 7, this organizational restructuring marks a pivotal moment for Japan's regulatory framework regarding digital assets.
The newly established division will consist of three sub-units, including the Crypto-Assets Monitoring Office, designed to oversee crypto exchanges, the Innovation Promotion Office, and the Digital Payment Planning Office. This reorganization aims to enhance regulatory supervision and streamline priorities around administrative tasks related to the digitalization of finance.
The FSA previously housed these responsibilities within counselor and monitoring offices, but the creation of a standalone division emphasizes Japan's commitment to evolving its regulatory landscape to ensure stability and security in its crypto market.
The Tokyo Stock Exchange (TSE) is set to implement a new surveillance mechanism that will impact listed companies undergoing substantial business transformations. This re-examination process closely mirrors initial listing reviews and is designed to assess the eligibility of such firms.
Companies that fail to meet the standards of this review risk delisting, while shares may carry designations alerting investors to potential issues during the assessment phase. Although the TSE has not named specific cryptocurrency treasuries, these entities could potentially be affected by the new rules.
This initiative represents a proactive approach by the exchange, indicating a willingness to uphold stringent standards amid the growing number of firms engaging with cryptocurrencies and blockchain technologies.
In Taiwan, the Financial Supervisory Commission (FSC) has announced the phased roll-out of regulations concerning virtual asset transfers, set to begin in October 2026. Known as the Travel Rule, these regulations stipulate that for transactions exceeding NT$30,000 between virtual asset service providers (VASPs), additional identity information will need to be provided.
The sending party must furnish personal details such as date of birth and residential address for individuals, while companies must submit their official identification numbers and registered addresses. The objective is to align with international anti-money laundering standards as outlined by the Financial Action Task Force (FATF), thereby enhancing traceability and regulatory compliance of virtual asset transactions.
India is also taking significant steps towards the regulation of cryptocurrency. The Central Board of Direct Taxes (CBDT) has revised its guidelines to extend cross-border tax reporting frameworks to encompass certain crypto assets and central bank digital currencies (CBDCs).
Now banks, mutual funds, and investment entities are required to identify reportable accounts that include cryptocurrencies and submit information regarding account holders’ tax-residential status. Enhanced due diligence will also apply to high-value accounts of over USD 1 million, underscoring India's commitment to more rigorous financial oversight concerning digital currencies.
In South Korea, Bithumb, the country’s second-largest crypto exchange, is working towards a public offering planned for 2028. To achieve this goal, the exchange is enhancing its internal control systems and preparing for compliance with K-IFRS standards by 2026.
The company plans to submit its preliminary listing application for review in 2027 while simultaneously strengthening its compliance measures, managing risk more effectively, and increasing transparency regarding its financial conditions and crypto asset holdings.
As preparations unfold, the timeline remains flexible, adjusting in accordance with market conditions and regulatory reviews.
In another notable development, Dunamu, the operator of the Upbit exchange, has triumphed in its bid for the National Police Agency's Seized Digital Asset Safekeeping and Management Project. This one-year contract will see Dunamu manage crypto assets seized by authorities, utilizing cold-storage methods for heightened security.
The firm was selected based on a top technical evaluation score of 94.14, demonstrating a solid commitment to security and compliance in handling sensitive digital assets. This project is set to fortify trust in the management of seized cryptocurrencies while ensuring they are securely maintained.
A case in Shenzhen has turned attention to the darker side of cryptocurrency. An employee who stole confidential R&D data from his employer attempted to extort money by posing as an overseas hacker. He demanded ransoms amounting to 0.88 BTC, 0.8 BTC, and 90,000 USDT.
The court deemed his actions as attempted extortion, leading to a conviction with a sentence of three years and three months in prison alongside a fine of RMB 10,000. This incident underscores the importance of cybersecurity and corporate integrity in the crypto space.
In a developing story, an on-chain analyst has revealed a significant cluster of Bitcoin wallets believed to be tied to the notorious Qian Zhimin case. Following a previously dormant wallet that transferred 1,020 BTC, the cluster now contains a total of 28,555 BTC, valued at around USD 1.8 billion.
The wallets have remained inactive since mid-2021, creating uncertainty over their current status. Law enforcement in London previously mentioned seizing around 61,000 BTC connected to allegations against Zhimin, who has been implicated in defrauding numerous investors from 2014 to 2017.
As investigations continue, questions arise about the eventual disposition of these assets, as well as the technology's potential for both illicit and legitimate use.
The crypto regulatory landscape in Asia is clearly evolving as governments introduce new frameworks and guidelines. As demonstrated by Russia's comprehensive digital currency law and Japan's institutional restructuring, each country is working to balance innovation with oversight.
In the coming months, we can anticipate further developments, as nations like Taiwan and India enhance their regulatory measures to align with global standards. Meanwhile, exchanges and firms in the region are preparing for public listings and expanding their services. Overall, Asia continues to lead the way in shaping the future of cryptocurrency, navigating challenges and embracing opportunities within the digital asset ecosystem.