Asian countries have been the first
passengers in the crypto adoption train. However, without a standard
regulatory framework, countries have approached cryptocurrency
regulations from different angles. Some have chosen to embrace
the technology that underpins cryptos and criminalizing crypto
businesses while others have chosen to accommodate virtual currencies
and formulate favorable regulations.
Let’s take a look at how key Asian
countries are handling cryptocurrency regulations.
Table of Contents
Let’s start on a slightly negative
was once one of the major crypto markets in the world, although it
had no concrete cryptocurrency regulations in place. Unfortunately,
when it decided to regulate the space, virtual currencies were no
longer welcome in China. Anything crypto was banned. From initial
coin offerings to crypto exchanges to crypto mining. Before all these
happened, a huge percentage of Bitcoin
miners were stationed in China.
After the ban, miners and exchanges
either closed shop or left the country. For example, Binance, one of
the leading virtual currency exchange in the world, had to leave
China to survive.
On the contrary, China has made huge
use of the technology
behind cryptocurrency; distributed ledger technology.
Fortunately, owning Bitcoin and other cryptos is still legal in the
Japan is a major crypto market and its
regulatory framework, although harsh, is geared towards making it
even more appealing for both crypto businesses and enthusiasts. The
Japanese financial watchdog, the Financial Services Agency, started
paying close attention to cryptocurrency regulations when Mt Gox, a
respected crypto exchange was hacked and millions lost. The hack
brought the exchange down to its knees and creditors are yet to get
paid 5 years down the line. Japan now requires crypto exchanges to be
approved by the Financial
Services Agency before they can be allowed to operate.
Last month, the Japanese House of
Representatives passed a bill in a bid to tune the country’s laws
about cryptocurrency regulations. The bill which was prepared by the
FSA seeks to amend the Financial Instruments and Exchange Act and the
Act on Settlement of Funds. If modified, the two acts are meant to
help the FSA in enforcing tighter cryptocurrency regulations.
is making headlines due to its positive approach towards
cryptocurrencies and blockchain technology in general. The country’s
financial regulator, the Monetary Authority of Singapore, has been
tasked with formulating cryptocurrency regulations.
For example, towards the end of 2018,
the Monetary Authority of Singapore finalized the creation of a
regulatory framework intended to govern payment services including,
but not limited to, virtual currency payment service providers
acquiring an operating license.
The crypto scene in South
Korea is patrolled by the Financial Supervisory Service, the
country’s financial watchdog. Although the country falls among key
crypto markets in Asia and the world, initial
coin offerings were prohibited in 2017. Fortunately, the country
has a relatively good relationship with cryptocurrencies. The country
has implemented cryptocurrency regulations to help protect crypto
investors. The positivity exuded by the South Korean government on
cryptocurrencies has helped in creating a favorable regulatory
framework to help drive the fourth industrial revolution.
India is yet to decide how it wants to
its crypto space. The country’s central bank, the Reserve Bank of
India (RBI), prohibited local banks from providing service to crypto
affiliated firms such as virtual currency exchanges. The case to lift
the ban sits in the Supreme court and is yet to reach a comprehensive
Instead of banning crypto activities,
Thailand has followed South Korean and Japan to develop
cryptocurrency regulations aimed at governing its crypto space.
Thailand requires exchanges to be licensed before operating.
For instance, at the beginning of this
year, four exchanges – Bitkub, Bx, Satang Pro, and Coins – were
approved to operate in the country.
to Bitkub’s founder, Jirayut Srupsrisopa, the approval opened doors
“We can partner with traditional
financial institutions, brokers, e-wallets etc. to offer more
financial products to customers. The bottleneck was the regulation.”
countries in the Asia region are handling cryptocurrency regulations
depending on their taste of virtual currencies. Notably, most of them
have decided to keep a positive outlook. Additionally, even China and
India, maybe it’s a matter of time for them to acknowledge the
of cryptos in their national laws.