Overview: Changing regulation of virtual assets in Asia

🔎 Overview: Changing regulation of virtual assets in Asia

Starting August 1st, Indonesia, Hong Kong, and other Asian jurisdictions are implementing new regulatory frameworks that will significantly impact VASP businesses across the region.

🇮🇩 Indonesia: Tax Hike Incoming

Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has announced a tax increase on virtual assets transactions. The new rate for sellers on domestic exchanges will rise from 0.1% to 0.21%, while foreign platforms will face a 1% rate. Buyers will be exempt from VAT. The mining tax is also increasing — from 1.1% to 2.2%. From 2026, the special 0.1% tax will be abolished, and mining income will be taxed under the general personal or corporate tax regime.

🇭🇰 Hong Kong: Stablecoin Licensing Begins

From August 1st, new rules for fiat-backed stablecoins come into effect in Hong Kong. Any issuer operating outside the jurisdiction must now obtain a license from the Hong Kong Monetary Authority (HKMA). A public license register is also being created, allowing market participants to verify the legitimacy of stablecoin projects.

🇸🇬 Singapore: Pressure on Foreign Exchanges

New regulations in Singapore require unlicensed foreign virtual assets exchanges serving international clients to cease operations or undergo a difficult licensing process. This is already prompting several companies to relocate to more crypto-friendly jurisdictions like Hong Kong or Dubai.

🇰🇷 South Korea: Stablecoin Oversight Tightens

The South Korean government is considering a bill that would restrict stablecoin issuance to banks only. The central bank opposes allowing private companies to issue tokens, citing financial stability concerns. According to local reports, over $19 billion in stablecoins exited the country in Q1 2025, intensifying regulatory scrutiny.

🇨🇳 China: Financial Monitoring Intensifies

Chinese regulators have ordered banks to tighten surveillance of international transactions, including crypto-related ones. Financial institutions must now report suspicious cross-border transfers in real time — signaling yet another escalation of Beijing’s crypto clampdown.

💼 How we can help?

The tightening of crypto regulations in Asia isn’t just a challenge — it’s a call to rethink strategy, expand to new markets, and strengthen legal positioning. FINANCEIQ HUB LTD offers full-spectrum solutions for crypto businesses worldwide:

• MSB Licenses (Canada & USA) — a strong and practical alternative to MiCA, enabling global crypto operations with banking access.
• MiCA License — perfect for companies targeting the EU market with full regulatory transparency.
• Bank Account Opening — SEPA, SWIFT, and multi-currency accounts.
• Crypto Payment Processing — card acquiring and gateway integrations.
• Liquidity & OTC Partnerships — access to top-tier liquidity providers.
• Turnkey Crypto Business Setup — from jurisdiction selection to full operational launch.

Contact us to find out the best offers for your business.