Read about Japan's on-chain finance initiatives and Sberbank's crypto trading infrastructure in our latest Asia crypto news roundup.
In the rapidly evolving landscape of cryptocurrency, Asia remains a focal point for regulatory shifts and innovative developments. The latest round of news highlights significant moves in Japan's financial policies and Russia's banking infrastructure poised to support crypto trading. Here, we explore the key updates in the region's crypto scene from the week ending July 26, 2026.
The Japanese government made a landmark decision on July 21 by incorporating the "advancement of on-chain finance" into its Basic Policy on Economic and Fiscal Management and Reform for 2026. This move officially acknowledges the role of blockchain technology in facilitating economic transactions.
Under this policy, on-chain finance refers to the use of blockchain for fund settlement, utilizing tokenized deposits and stablecoins. The intent is to integrate these methods with programmatic data management systems that enhance logistics and trade documentation. Beyond just promoting digital asset use, this policy aims to revolutionize various sectors, including manufacturing and securities settlement.
In another critical development, Japan has set its sights on launching Bitcoin ETFs by 2028. Following recent amendments to the Financial Instruments and Exchange Act, which brings cryptocurrencies under the regulatory frameworks for financial products, the Financial Services Agency (FSA) is taking steps to open the door for investment trusts that will hold crypto assets.
This regulatory evolution coincides with growing interest among institutional investors in Japan. A survey by Nomura Holdings and Laser Digital revealed that approximately 79% of institutional participants and family offices plan to allocate capital into crypto assets within three years. Given Japan's retail investors' significant cash holdings in household financial assets, they are projected as the primary source of capital for these Bitcoin ETFs. Analysts suggest that Japan could see inflows reach an impressive 3 trillion yen, equivalent to about $20 billion, by the fiscal year 2028.
Across the sea in South Korea, the cryptocurrency market is experiencing a significant downturn. The average daily trading volume across the nation's five leading exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—has plummeted an astonishing 89% year-on-year, dropping from $2.82 billion in July 2025 to just $305 million.
This decline contrasts starkly with the KOSPI index, which has soared by 114.44% in the same period. Reports indicate that some exchanges have resorted to liquidating crypto assets due to diminished fee revenues, with Korbit selling 15 BTC and 60 ETH to raise approximately $1 million in South Korean won. The drop highlights the volatile nature of the market and raises concerns about the future engagement of traders.
The Financial Services Commission (FSC) of South Korea has announced plans to expedite stablecoin regulation as part of a broader effort to enhance institutional access to cryptocurrency markets. Officials have indicated that the Digital Assets Basic Act, focused on stablecoins, will be finalized by the end of the year.
Furthermore, the FSC is considering additional measures that would facilitate institutional participation in the crypto market. This includes enabling corporations to trade via specialized brokers and over-the-counter platforms. If pursued, these changes could dismantle barriers that have restricted financial institutions from participating in cryptographic asset trading since 2017.
Sberbank, the largest bank in Russia, has announced its plans to establish a comprehensive cryptocurrency trading infrastructure aimed at supporting trading, custody, and settlement of digital assets. This initiative is expected to be finalized by December 1, coinciding with the implementation of a new regulatory framework for cryptocurrency trading that takes effect on September 1.
The new infrastructure includes a digital custody system designed to document client ownership of crypto assets for off-chain transactions. Additionally, Sberbank will handle custody services for deposits, withdrawals, and transfers, adhering to regulations that require trading through licensed intermediaries by 2027. This move reflects Russia's increasing acceptance and regulation of digital currencies, albeit with restrictive measures on cryptocurrency payments for goods and services within the country.
The Federal Investigation Agency (FIA) of Pakistan has launched a dedicated cryptocurrency unit aimed at combating money laundering and financing terrorism. This initiative forms part of the newly set up National Command and Control Centre (NC3), which will oversee cryptocurrency-related investigations.
Headed by Muhammad Athar Waheed, the FIA unit will focus on enforcing regulations set by the Pakistan Virtual Assets Regulatory Authority (PVARA). The NC3 will enhance cross-agency intelligence gathering, anti-money laundering operations, and cyber patrols to mitigate potential misuse of digital currencies.
The Bank of the Philippine Islands (BPI) has undertaken an important pilot project in collaboration with digital clearinghouse Meridian to test a stablecoin-powered system for cross-border settlements. The goal is to reduce the costs associated with overseas remittances and expedite the arrival of funds.
This system will convert stablecoins into Philippine pesos, facilitating deposits into recipients' accounts. Initially targeted at freelancers and overseas workers, BPI plans to expand this offering to all clients, demonstrating a significant step towards modernizing the remittance process in the Philippines.
On July 16, the Vietnamese government introduced Decree №284/2026/NĐ-CP, which outlines an administrative penalty system for crypto market operations. Under this new regulation, individuals trading cryptocurrencies on unlicensed platforms could face fines of up to 50 million Vietnamese dong, approximately $1,900.
Moreover, unauthorized issuance of crypto assets can attract fines of up to 200 million Vietnamese dong (about $7,700). This regulatory framework empowers authorities to revoke licenses, suspend operations, and confiscate assets. As Vietnam aims to launch regulated crypto exchanges in the near future, this decree is essential for establishing a structured and secure trading environment.
A notable incident in Hunan province involved an individual penalized for facilitating USDT trading using family payment accounts. After being investigated, police labeled his activities as illegal renting and lending of payment accounts, leading to administrative penalties in accordance with the country's Anti-Telecom and Online Fraud Law.
This case highlights the ongoing scrutiny and regulatory challenges surrounding crypto activities in China, emphasizing the importance of adhering to local laws to avoid legal repercussions.
In a comprehensive drive against illicit virtual currency activities, Shenzhen authorities, led by multiple regulatory bodies, have shut down several self-media accounts promoting cryptocurrency. They targeted accounts that disseminated misrepresentative marketing material and engaged in operations that induced public participation in illegal crypto-related ventures.
Such actions reinforce China's firm stance against illegal financial activities involving virtual currencies while showcasing the government's ongoing efforts to mitigate the risks associated with the crypto market and protect consumers.
As Asia continues to evolve within the cryptocurrency domain, the developments in Japan, South Korea, Russia, Pakistan, the Philippines, Vietnam, and China paint a diverse picture of regulatory advancements and market adaptations. With Japan leading in on-chain finance and stablecoin integration, and Russia establishing foundational infrastructure for trading, the region remains poised for growth.
Additionally, regulatory frameworks in nations like Vietnam and the Philippines reflect a commitment to creating secure environments for crypto engagement. As these policies take shape, Asia is likely to be a key player in shaping the future of cryptocurrency and blockchain technology on a global scale.