Key Insights
- •Regulators are revisiting crypto banking rules, with stablecoins prompting a fresh review of capital requirements.
- •Malaysia and Hong Kong are advancing with asset tokenization and crypto trade monitoring systems.
- •Thai police have arrested a suspect in a $14 million crypto fraud case, while China is progressing with a major refund case.
Global Regulatory Review of Crypto Banking Rules
Global regulators are considering changes to upcoming rules concerning how banks handle crypto assets. The Basel Committee is currently reviewing capital requirements that are scheduled to take effect next year. These rules, initially introduced in 2022, have been perceived as a deterrent for banks due to the substantial capital they necessitate for holding cryptocurrencies.
This review is occurring as stablecoins are drawing increased scrutiny. Any potential adjustments to these capital requirements could significantly influence the future participation of banks in the cryptocurrency and stablecoin markets.
Policy Developments in Hong Kong, Malaysia, and Singapore
In Hong Kong, the Securities and Futures Commission is actively seeking bids for a system designed to monitor virtual asset trading. The primary objective of this initiative is to identify and flag irregular market activities. The deadline for submitting bids is November 7, with the selection of a vendor anticipated in the first half of 2026.
Bank Negara Malaysia has announced a three-year program dedicated to exploring the tokenization of real-world assets. The central bank will collaborate with various industry groups and plans to commence proof-of-concept testing in 2026. An expansion of this pilot program is scheduled for 2027.
In Singapore, law enforcement agencies have successfully frozen over 800 million yuan in assets that are reportedly connected to Chen Zhi, an individual implicated in a transnational telecom fraud network. The seized assets include cash, property, and investment accounts. According to one source, "Authorities have identified Chen Zhi as a key figure in the operation."
Exchange Activity and Stablecoin Advancements
Bybit has temporarily halted new user registrations in Japan, citing the need to comply with local regulations. Existing users are not currently affected by this decision. Historical precedents suggest that further restrictions could be implemented in the future.
In Japan, JPYC Inc. has launched a yen-pegged stablecoin, named JPYC, along with its associated platform, JPYC EX. This stablecoin is fully backed by deposits and government bonds and is designed to operate on the Ethereum, Avalanche, and Polygon blockchains.
Ongoing Crime and Legal Proceedings
Thai police have apprehended Liang Ai-Bing, a Chinese national who is alleged to be involved in the FINTOCH cryptocurrency scheme. This case is reportedly linked to losses exceeding $14 million. During the arrest, authorities also discovered weapons.
Investigators commented on the scheme, stating, "The platform used fake identities and promised high returns."
In China, individuals who were affected by the Lantian Gerui fraud case are required to verify their claims by December 29. This case involves a substantial sum of over 43 billion yuan and has impacted nearly 130,000 victims across the nation.