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Ahead of AIBC Asia, we’re taking a closer look at several countries in the region that have worked hard to try and become Asia’s next cryptocurrency hub. After years marked by regulatory uncertainty, governments are now competing to bring digital-asset activity onshore with clearer rules, licensed products and institutional-grade infrastructure.
No single winner has emerged yet, but the contours of a regional contest are taking shape across Hong Kong, Singapore, Japan and parts of Southeast Asia. In this article, we’ll be looking at the different countries and their policies regarding crypto.
We’ll also be taking a closer look at crypto regulation next month at AIBC Asia – the undisputed regional powerhouse in crypto events. The Asia roadshow conference will include panels on crypto, regulation and prediction markets, among other topics. Don’t miss out on tracks such as: The Future of Regulation in the Asian Digital Economy and Emerald City: Asia’s Digital Asset Frontier on the 02 June. For a more detailed look and for the full list of over 250 expert speakers, browse the agenda for AIBC Asia online.
In an effort to become Asia’s crypto hub, Hong Kong has become the region’s most visible crypto test case. Its authorities have decided to address compliance with a deliberate push to attract global capital.
In May 2025, the city’s Legislative Council passed the Stablecoins Ordinance, which came into force on 1st August. The move placed fiat-referenced stablecoin issuance under the supervision of the Hong Kong Monetary Authority and made marketing of unlicensed stablecoins illegal to curb retail risk.
The Hong Kong government also paired the legislation with pilot projects. According to blockchain compliance firm Elliptic, the HKMA entered the pilot phase of its tokenization programme, Project Ensemble, in November 2025. Participants include Standard Chartered, HSBC, Bank of China (Hong Kong), BlackRock and Franklin Templeton. The project used Hong Kong’s real-time gross settlement system to test interbank settlement of tokenized deposits.
Over time, Hong Kong’s market access also expanded. The Securities and Futures Commission had approved 11 licensed virtual-asset trading platforms by early 2026, while the launch of Asia’s first spot Bitcoin and Ether exchange-traded funds on April 30 marked a milestone.
Unlike Hong Kong, Singapore is Asia’s most tightly regulated crypto market. The city-state is unapologetic about its conservative position.
Amendments to the Financial Services and Markets Act now require all digital-token service providers, including overseas exchanges serving Singapore residents, to obtain a local licence from the Monetary Authority of Singapore (MAS) or exit the market. Authorities have also banned credit-card purchases of crypto and introduced minimum capital requirements to protect retail investments.
The approach has not reduced activity. The MAS issued 13 new digital payment token licences in 2024, bringing the total to 29 by November. Industry executives say Singapore’s willingness to facilitate banking relationships for licensed crypto firms remains a competitive advantage.
Singapore’s incumbents are also active. Vivien Khoo, co-founder of the Asia Crypto Alliance, noted that Singapore and Hong Kong now operate “fairly similar” licensing frameworks, making regulatory arbitrage increasingly difficult.
Japan, one of the first countries to regulate crypto exchanges, is revamping its model to stem an outflow of capital and talent.
The government is preparing to cut crypto capital-gains tax from as high as 55% to 20%, a reform that would bring digital assets closer to the taxation of equities. Regulators are also weighing rules that would require exchanges to hold emergency reserves to cover cyberattacks and operational failures.
In November 2025, Japan’s Financial Services Agency publicly backed a stablecoin pilot project involving the country’s three largest banks. This step was seen as critical for rebuilding confidence after a string of high-profile exchange scandals earlier in the decade. Together, tax reform and bank-backed stablecoins signal Tokyo’s intention to make crypto compatible with its existing financial system rather than a parallel industry.
South Korea is moving in the same direction, with a comprehensive digital-asset framework expected to take effect in 2026. Stablecoin legislation, described by Elliptic as a priority of President Lee’s economic growth agenda, is aimed at keeping Seoul competitive with Hong Kong, Singapore and Tokyo. South Korea already boasts one of the world’s most active retail trading communities, giving regulators an incentive to formalise oversight rather than suppress activity.
Elsewhere in Asia, growth is being driven by adoption rather than financial engineering. Central and Southern Asia led the world in crypto usage in 2024, while countries such as Indonesia, Malaysia and Thailand are gaining ground. Thailand is finalising rules for crypto ETFs and futures trading, positioning itself as a regulated gateway for retail and institutional investors in Southeast Asia.
Across the region, Asia had more than 326 million crypto users in 2024, according to industry estimates, reflecting a mix of speculative trading, remittances and decentralised finance use cases.
Rather than a single winner, Asia’s next crypto hub may be a network of specialised centres. Hong Kong leads on product innovation, Singapore on consumer protection, Japan on banking-grade pilots and tax reform, while other countries are doubling down on compliance.
What unites them is a coordinated licensing push that industry executives say is drawing offshore activity back onshore. With tokenised assets projected by Boston Consulting Group to reach $16 trillion by 2030, Asia’s bet is that regulatory clarity, not deregulation, will determine where the next phase of crypto finance takes root.
For a more in-depth look at the crypto industry in Asia, don’t miss out on AIBC Asia at the end of May. Taking place at the SMX Convention Center in Manila, AIBC Asia will bridge the worlds of AI, blockchain, crypto and the gaming industry, bringing over sixteen thousand key players together under one roof. If you haven’t already, get your ticket now by visiting our website to register.
Brazil has moved to restrict the use of stablecoins and cryptocurrencies in cross-border payments, banning electronic foreign exchange (eFX) companies from using digital assets to settle overseas remittances under new central bank rules.
The new resolution from the Central Bank of Brazil prohibits eFX firms from using cryptocurrencies such as Bitcoin and stablecoins to complete international transfers. The ban is set to take effect on 1 October.
The regulation requires that payments between Brazilian firms and overseas counterparts be processed through traditional foreign exchange channels or via non-resident real-denominated accounts held in Brazil.
The rules also prevent remittance providers from accepting Brazilian reais, converting them into digital assets and settling transactions via blockchain networks.
While crypto trading itself remains legal, the policy is expected to impact companies that had integrated stablecoin-based settlement into their cross-border payment systems, including firms such as Wise.
The regulatory shift comes amid strong growth in Brazil’s digital asset sector. Data from the country’s federal revenue service indicates that crypto transactions total between $6 billion and $8 billion per month, with around 90 per cent of that volume driven by stablecoins.
Brazil ranks among the world’s leading markets for crypto adoption, with an estimated 25 million users engaging in digital asset transactions.
Despite their reputation as a disruptive force in cross-border finance, stablecoins currently represent only a small fraction of global payment flows.
Research highlighted by McKinsey & Company shows that most stablecoin payment activity is concentrated in markets such as Hong Kong, Japan and Singapore, with relatively limited usage in regions like Latin America and Africa.
Analysts note that many of the advantages associated with cryptocurrencies, including faster transactions, lower costs and greater flexibility, are increasingly being matched by improvements within traditional financial systems.
Advances such as real-time payment rails, reduced foreign exchange costs and the use of application programming interfaces (APIs) are transforming cross-border payments without requiring a shift to entirely new infrastructure.
Brazil’s latest move reflects a broader trend among regulators seeking to balance innovation with financial stability and oversight. In 2025, crypto transactions linked to human trafficking grew sharply, rising 85 percent compared to the previous year. Much of this activity was tied to scam compounds in Southeast Asia, where people were tricked with fake job offers and then forced to run fraud schemes under threats of violence.
In order to transfer money across borders, trafficking networks, including those connected to so-called “international escort” services, have been using stablecoins more and more. These flows have been tracked across nations including Brazil, the US, and the UK. Blockchain openness has made it possible for investigators to track the money despite the size of these operations, providing a unique opportunity to destroy the networks behind these crimes.
India’s Enforcement Directorate (ED) is sharpening its focus on cryptocurrency fraud, terror financing, cyber-enabled crime and narcotics trafficking.
Speaking at the agency’s 70th ED Day event, as reported by The Economic Times, Director Rahul Navin said traditional financial crimes such as bank and real estate fraud have declined, largely due to regulatory frameworks like the Insolvency and Bankruptcy Code and the Real Estate Regulation and Development Act.
The agency’s enforcement activity has increased significantly over the past year. During 2025-26, the ED filed 812 charge sheets and 155 supplementary charge sheets. This is nearly double the numbers recorded in the previous financial year.
Navin said the agency currently maintains a conviction rate of 94 per cent, with around 2,400 money laundering cases pending trial across Indian courts. He expressed confidence that most of these cases would result in convictions.
The ED has also returned assets worth ₹63,142 crore (abouy $6.6 million) to victims of financial fraud, including homebuyers, investors and banks. Established in 1956, the agency operates under key legal frameworks including the Prevention of Money Laundering Act, the Fugitive Economic Offenders Act, and the Foreign Exchange Management Act.
The shift towards crypto-related offences comes as digital assets increasingly feature in financial crime investigations. Authorities have flagged concerns over their use in money laundering, cross-border transfers and illicit financing.
India’s tax authorities have recently intensified oversight of digital asset transactions, issuing notices to investors who failed to report crypto activity in previous financial years.
Using advanced data systems such as the Insight Portal and Checkpoint/Restore In Userspace (CRIU) risk engine, officials are analysing exchange data, PAN-linked Know-Your-Customer (KYC) records and bank transactions to detect discrepancies. In some cases, total trading volumes have been treated as deemed income, significantly increasing potential tax liabilities.
These notices, issued under Section 148A of the Income-tax Act, act as early warnings, allowing investors to clarify discrepancies before formal proceedings begin. However, failure to respond could lead to penalties or further investigation.
The enforcement push is part of a broader regulatory framework introduced in the Union Budget 2026. This budget introduced penalties for inaccurate crypto reporting and strengthened compliance requirements.
India is also on it’s way to use the OECD’s Crypto-Asset Reporting Framework starting in April 2027. This will allow for cross-border sharing of crypto transaction data. It is expected to improve oversight of offshore holdings and lower tax evasion risks.
Financial crime patterns have also changed. While traditional fraud linked to banking and real estate is declining, new-age risks tied to digital finance, cybercrime and globalised transactions are expanding rapidly.
As India strengthens both enforcement and regulatory frameworks, crypto-related compliance is set to become a central focus for authorities, investors and financial institutions alike. This is important as India’s cryptocurrency market recorded transactions worth ₹51,000 crore ($5.4 billion) in 2024–25, a 41 per cent increase on the previous year.
The rise reflects growing use of virtual digital assets amid evolving government policy and institutional activity. India has become one of Asia’s largest crypto markets, driven by younger investors and fintech adoption. Despite high taxation and the absence of formal regulation, digital assets such as Bitcoin, Ethereum and stablecoins are being used as alternative investment options.
A CEX.IO survey of 1,100 U.S. users demonstrates how the decline in cryptocurrency is impacting daily life. Nearly 47 per cent of Bitcoin’s circulation supply is lost, as it is currently selling close to $77,000 and roughly 40 per cent below its October 2025 top. According to the survey, 10 per cent of participants made major financial sacrifices in order to maintain their positions, while 36 per cent of respondents reduced daily spending due to cryptocurrency losses.
The survey also found that 37 per cent of participants delayed or cancelled purchases, including 21 per cent who postponed major financial decisions such as buying a home or car. Analysts describe the current cycle as a more gradual, less volatile downturn than in 2022, with limited panic selling. However, market data indicates the bear phase may continue into late 2026 as conditions evolve.
A recent survey shows how crypto losses are affecting the everyday lives of retail traders. About 36 per cent have cut back on non-crypto spending, and 10 per cent made significant sacrifices to keep their investments. The impact extends to bigger decisions, too. Around 37 per cent of users delayed or cancelled purchases, and for 21 per cent of those, it was a major milestone, such as buying a home, a car, or renovating a property. The pattern is similar to what happens during large economic disruptions, showing how deeply crypto investments influence personal finances.
Many crypto investors keep their holdings private, not out of secrecy but because these investments can be personal and complex. Only a small number of people fully share what they own or its value, since explaining crypto often requires discussing wallets, tokens and prices that change by the minute.
Unlike traditional assets, there are no simple statements to show, and decisions are usually made alone, which adds to the sense of independence. There is also an emotional side: losses can be hard to talk about, especially when they stem from personal choices.
During bear markets, this silence can turn into emotional isolation, with financial stress becoming something people deal with privately. Constant price swings and market uncertainty can affect sleep and mental wellbeing, making downturns not just a financial challenge but also a psychological one.
Bear market strains household budgets (Source: CEX.IO)
Many crypto investors are feeling cashflow pressure beneath the surface. About 38 per cent reported financial disruption, with some dipping into savings or emergency funds to cover daily expenses, resources meant for emergencies such as job loss or medical needs.
The stress shows up in other ways, too: 12 per cent admitted to missing or delaying bill payments because of crypto-related pressures. That’s a serious sign, since it affects essential obligations. And these numbers may understate the reality, as people are often reluctant to share financial struggles tied to personal investment choices.
Nearly half of retail investors have more than 30 per cent of their assets tied up in crypto, creating a heavy concentration in one volatile market. When prices fall, the impact ripples through the rest of their financial lives, making everyday stability harder to maintain.
Most traders haven’t changed how they earn money despite the financial pressure from crypto volatility. About 73 per cent continue with the same income streams, showing either resilience or a decision to wait things out rather than make big lifestyle changes. Only 9 per cent have taken on extra work, which suggests that while the strain is real, it hasn’t yet led to widespread shifts in how people approach their earnings.
Many investors say their biggest regret isn’t putting too much money into crypto but failing to set clear exit strategies. About 41 per cent wish they had defined rules for taking profits, underscoring the importance of planning in volatile markets. Despite setbacks, most still believe in Bitcoin’s future, 79 per cent are holding or adding to their positions. For many, this isn’t denial but conviction that the asset will recover over time.
Long-term Bitcoin holders have continued to add more than 1 million BTC in recent months, according to latest on-chain data, demonstrating their faith in the asset despite market volatility. Even while selling pressure has been mostly restrained, almost half of the whole Bitcoin supply is currently in the red. This combination implies that large holders are still demonstrating commitment by growing their positions even while many investors are experiencing unrealised losses.
The Monetary Authority of Singapore (MAS) is reviewing its capital framework for cryptocurrency firms as part of efforts to strengthen oversight of the digital asset sector. In order to ensure that licensed crypto service providers have adequate financial buffers to handle risks including market volatility and operational breakdowns, the proposed modifications seek to clarify capital requirements.
The Payment Services Act, which governs cryptocurrency operations in Singapore, mandates licensing, adherence to anti-money laundering regulations, and consumer protection measures. As authorities react to the expanding size and complexity of digital asset markets, the most recent assessment expands upon this framework. According to officials, the action is a part of a larger plan to strengthen Singapore’s standing as a regulated centre for fintech and cryptocurrency activity while striking a balance between innovation and financial stability.
The Basel Committee on Banking Supervision has set out rules on how banks should treat crypto assets in their capital calculations. The framework is intended to guarantee that banks have sufficient capital to offset possible losses resulting from volatile exposures. Global regulators concur that there are hazards associated with cryptocurrency, such as fluctuations in price, weaknesses in technology, and difficulties with liquidity. Although deadlines differ by jurisdiction, it was originally anticipated that these criteria would be implemented in January 2026.
Group 1 consists of some stablecoins and tokenised traditional assets. Because real-world assets support them or preserve price stability through reserves, these are regarded as lower risk. Lower capital requirements apply to banks that deal with these assets.
Group 2 includes cryptocurrencies like Ethereum, Bitcoin, and the majority of tokens on open blockchains that are unstable or unsupported. These are regarded as high-risk, and full capital deduction is frequently required due to severe capital charges. They are not considered stable financial instruments in a regulatory sense, but rather speculative holdings.
The goal is to adapt worldwide regulatory standards to Singapore’s unique financial landscape. Regulators warn that applying Basel’s framework unaltered might stifle innovation, particularly for blockchain-based assets that do not neatly fit into established categories. They advocate for a more flexible approach instead of depending on Basel’s strict classification system, warning against categorising all permissionless blockchain assets as high-risk Group 2 securities.
According to the proposal, if specific criteria are met, some cryptocurrency assets may be eligible as Group 1. As a result, their risk weights could be lower than those of other digital assets. A more sophisticated framework that strikes a compromise between risk management and room for innovation is presented in the proposal. The result may have an impact on how Singaporean institutional players interact with cryptocurrency assets.
Under Basel rules, cryptocurrencies on permissionless blockchains such as Bitcoin and Ethereum are generally classified as high risk. The reasons include a lack of centralised control, significant price volatility, and uncertain regulatory support. Heavy capital requirements discourage banks from holding these assets. The MAS has proposed a structure that is more adaptable. Rather than immediately labelling all permissionless assets as high-risk, MAS suggests assessing them based on predetermined standards.
Lower-risk holdings could include assets that exhibit stability, transparency, and efficient risk management systems. In contrast to Basel’s general regulations, this would enable banks to impose less onerous capital requirements. The proposal reflects the view that blockchain technology has evolved. Some newer assets exhibit stronger governance, improved liquidity, and more reliable infrastructure than earlier cryptocurrencies.
The MAS has proposed strict limits on banks’ exposure to crypto assets. Reclassified assets cannot exceed 2 per cent of a bank’s Tier 1 capital, serving as a safeguard against excessive risk. Additional controls apply to banks issuing crypto assets that create liabilities on their balance sheets. Such issuance must remain below 5 per cent of Tier 1 capital. These measures are designed to prevent banks from taking on disproportionate risks while allowing limited participation in the crypto sector.
The MAS initially intended to follow Basel’s 2026 timeline, but following input from the industry, implementation has been rescheduled until 2027. A smoother adoption process and time for modifications are made possible by the delay. The delay allows for more time for changes and a more seamless adoption process. MAS’s methodology may have an effect on how bitcoin assets outside of Singapore are classified. By giving Basel’s framework more flexibility, the proposal may have an impact on future international standards.
Singapore’s attempt to strike a balance between risk management and innovation is reflected in the consultation. The nation’s place in the changing environment of digital finance will depend on how the framework is implemented.
Enterprise adoption of Web3 is being held back not by technological limitations, but by the complexity of orchestration and control across systems, according to Serena Sebastiani, Chief Strategy & Venture Officer at Fuze.
Speaking exclusively at AIBC Eurasia 2026 in Dubai, Sebastiani said enterprises are struggling not with innovation, but with integration. “So in our space, technology rarely fails,” Sebastiani said. “What is really difficult is the orchestration layer and how you keep control of all the pieces and how you put your own ecosystem together.”
She explained that enterprises face mounting challenges in streamlining operations across fragmented systems, including fiat infrastructure, payment rails, liquidity and Web3 technologies. “It’s really around streamlining operations and having control of fiat, rails, liquidity, Web3 and the products and your clients more than technology itself that now evolves,” she added.
The comments come at a time when Web3 is transitioning from early experimentation to real-world implementation, but still lacks depth in enterprise-grade deployment.
According to Deloitte’s Q2 2025 CFO Signals survey, nearly one in four CFOs expect their finance functions to use digital currency within two years, with adoption rates even higher among larger enterprises (40 per cent). That said, CFOs still have doubts about digital assets. In the survey, about 43 per cent of respondents cited price volatility, 42 per cent complexities around accounting and controls, and 40 per cent cited lack of industry regulation as their top concerns about investing in crypto.
This gap highlights a broader industry challenge: while infrastructure and innovation have advanced rapidly, operational cohesion has lagged behind. Similarly, research from PwC shows that enterprise blockchain adoption is increasingly focused on efficiency gains, particularly in payments, settlements and supply chains, but integration complexity remains a top barrier.
Looking ahead, Sebastiani argued that mainstream Web3 adoption will depend less on breakthrough products and more on usability. “It’s really a matter of seamless integration,” she said. “There is maybe not one particular product or stream that will lead, it’s how we integrate from a user experience perspective.”
While decentralised finance continues to dominate the crypto landscape, she noted that poor user experience remains a significant hurdle. “DeFi is quite a space and is the largest adoption in crypto, but still, UX is not that great; it has to be improved,” she said. For Sebastiani, the benchmark for success is simple: accessibility for everyday users.
“I’ll be happy to see when my sister or my mother, who do not know anything about crypto, will start using AI, then we can say that we have facilitated that adoption,” she said.
Industry data strongly supports this view. Various studies, including digital asset technology solutions company ChainUp, show that between 60 per cent and 90 per cent of users abandon crypto onboarding before completing their first transaction, largely due to the complexity of wallet setup, gas fees, and identity verification. Meanwhile, over 80 per cent never return after a single use.
Sebastiani also highlighted regulatory clarity as a key enabler of enterprise adoption. “Regulatory frameworks are enablers eventually,” she said. “Regulators look at predictability, which enables the ecosystem to rely on trust.” She explained that clearer rules create a safer environment for institutions to integrate blockchain into both customer-facing services and underlying infrastructure.
(Source: AIBC World/YouTube)
Recent developments support this shift. In 2025, the European Union advanced its digital finance framework, while global regulators increased efforts to standardise crypto compliance, moves widely seen as unlocking institutional participation.
At the same time, major financial players are actively expanding into blockchain. JPMorgan Chase has issued tokenised debt on blockchain networks, signalling growing confidence in distributed ledger technology. Meanwhile, Goldman Sachs recently filed for a Bitcoin-focused exchange-traded fund (ETF), aiming to provide exposure to digital assets through regulated investment products.
As AI and blockchain converge, Sebastiani stressed the importance of governance and compliance. “It always goes back to safeguards and governance,” she said, pointing to evolving privacy regulations such as Europe’s Third Payment Services Directive (PSD3) framework.
She also noted advancements in privacy-preserving blockchain technologies. “It’s really about trust, compliance and governance,” she added. Industry-wide, technologies such as zero-knowledge proofs and confidential computing are gaining traction, enabling secure data sharing while maintaining regulatory compliance.
Despite rapid technological progress, Sebastiani reiterated that control and orchestration remain the central obstacles. “The challenge is how you keep control of all the pieces,” she said, underscoring the difficulty of managing interconnected systems.
The scale of the opportunity reflects the urgency of solving this issue. According to a report by global market research and consulting firm MarketsandMarkets, the global blockchain market is projected to grow from around $33 billion in 2025 to nearly $393 billion by 2030, at a CAGR of over 60 per cent.
Russia has introduced a bill in the State Duma to criminalise the operation of unregistered cryptocurrency services. The proposed law would penalise people and organisations who engage in cryptocurrency-related operations without the consent of the nation’s central bank.
Offenders could face fines and up to 4 years in prison, with harsher penalties of up to 7 years for organised or large-scale operations. The bill aims to bring tighter control over digital asset activity by targeting both small operators and larger networks operating outside regulatory oversight.
A broad definition of “unlicensed crypto activity” is provided under the proposed legislation in Russia. It includes payment gateways, brokerage services, exchanges, trading platforms, and custody providers that deal with digital assets. This definition would include even serving as a middleman in the unauthorised purchase, sale, or transfer of cryptocurrency. The goal is to make sure that all companies involved in cryptocurrency follow proper licensing regulations.
The Central Bank of Russia is the primary authority in this framework. Any entity wishing to operate legally in the crypto sector must obtain the bank’s approval. Financial reporting, operational transparency, Know Your Customer procedures, and anti-money laundering inspections are all expected components of compliance.
For unlicensed cryptocurrency activity, the draft law suggests fines and jail time. Unregistered digital currency providers risk fines of up to 300,000 roubles (about $4,000 USD) and up to four years in jail. Fines might reach one million roubles (approximately 13,000–13,500 USD) if the action is planned or involves substantial amounts of money. Larger operations and coordinated efforts are the focus of these actions.
By legally adding unlawful the digital currency activity to the criminal code, the measure shifts violations from a regulatory grey area into criminal law and imposes tougher penalties. Coordinated operations that produce substantial revenue or cause serious harm are subject to harsher penalties. In certain situations, criminals may be sentenced to seven years in jail, five years of forced labour, and additional fines.
Russia’s attempts to preserve its financial independence and international sanctions are intimately linked to its push for stricter cryptocurrency regulation. Digital assets have emerged as a substitute method of transferring money outside of conventional channels due to restricted access to international systems such as SWIFT.
Recent data shows that state-driven crypto transactions surged by 694% in 2025, highlighting how digital assets are being used as a substitute for conventional banking. While this growth underscores their usefulness, it also raises concerns about misuse and illegal activities. In response, the government is moving to bring cryptocurrencies under a clearer legal framework and increase oversight.
The rise in criminality associated with digital assets is another element motivating legislation. Cases of fraud, money laundering, and darknet activities have demonstrated how cryptocurrency may be abused. The scope of the issue was highlighted by platforms like Hydra, which enabled billions of illegal transactions before being shut down.
A larger effort to regulate the bitcoin industry includes this new regulation. Russia passed legislation outlawing illicit cryptocurrency mining earlier in 2026, with fines and a maximum five-year prison sentence as punishments. When taken as a whole, these actions demonstrate a clear and intentional attempt to increase control over various facets of the cryptocurrency ecosystem, including as mining, trading, and associated services.
Instead of completely banning cryptocurrency, Russia is taking a different approach by tightening regulations and allowing transactions only through authorised intermediaries. Retail investors can still buy digital assets, but they must do so via approved channels. Overall, the focus is on controlling and regulating the market rather than shutting it down entirely, with clear rules about who can participate and how transactions should take place.
Russia’s approach to cryptocurrency legislation is still uncertain because lawmakers are still debating how to govern digital assets. Legislative review is still influencing the general direction of policy, even though authorities have stated that they will take a stronger stance against unauthorised activity. Changes are expected as the bill moves through parliament before it becomes law.
Pakistan has ended a seven-year restriction on banks working with cryptocurrency businesses, marking a significant shift in the country’s approach to digital assets. The move, approved by the State Bank of Pakistan (SBP), allows banks and financial institutions to offer services to licensed crypto firms, opening the door to regulated access for millions of users across the country.
Banks will still not be permitted to trade, invest in, or hold cryptocurrencies themselves under the new arrangement, which places present cryptocurrency activity under legal oversight. The goal, according to officials, is to reduce risks like fraud and money laundering while allowing the sector to operate within predetermined parameters.
“Subject to strict compliance with the conditions outlined herein, SBP Regulated Entities (REs) may open bank accounts of entities duly licensed by PVARA as Virtual Asset Service Providers (VASPs),” the State Bank of Pakistan said.
In 2018, Pakistan banned banks from managing cryptocurrencies. The SBP enacted regulations that forbade financial institutions from supporting Bitcoin transactions due to concerns about volatility and a lack of oversight. Consequently, official banking systems were effectively shut off from the industry. Despite the constraints, individual trading continued to grow. Businesses, meanwhile, were left in a legal uncertainty and without access to banking infrastructure. Uncertain restrictions hindered the industry’s ability to expand safely.
By 2026, the global landscape will have shifted. Adoption of digital assets has expanded, regulatory frameworks have matured, and blockchain technology has found uses beyond speculation. Pakistan introduced the Virtual Assets Act and created a dedicated regulatory authority for digital assets. The new framework seeks to bring these activities into the formal economy under clear rules.
Pakistan’s Virtual Assets Act 2026, which replaces the nation’s prior cryptocurrency ban with a formal legislative framework, represents a significant turning point. By establishing precise compliance standards and operational guidelines and restricting participation to registered companies, the Act guarantees that fraud and illegal activity are kept firmly in check.
The law provides control and legitimacy for a sector that had previously functioned in uncertainty by establishing a structured mechanism that transfers cryptocurrency activity from an unofficial setting into the legitimate economy.
Pakistan has taken an important step toward formalising its virtual asset ecosystem.
Following the enactment of the Virtual Assets Act, 2026, the State Bank of Pakistan has issued BPRD Circular Letter No. 10 of 2026, enabling regulated entities to open and maintain bank accounts… pic.twitter.com/cuUhwSiCfS
— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) April 14, 2026
The Pakistan Virtual Assets Regulatory Authority (PVARA) is the body responsible for supervising the country’s crypto sector. It oversees licensing, compliance, and enforcement across exchanges, wallet providers, and other digital asset businesses.
A licence from PVARA is required for any business looking to function as a Virtual Asset Service Provider (VASP). Checks on operational openness, security systems, and financial integrity are all part of the process.
Licensed companies are required to follow Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations. These measures act as a filter, ensuring that only trustworthy, law-abiding businesses are allowed to enter the market. By setting strict licensing and compliance standards, PVARA is working to build an environment where risks are minimised and both users and investors can feel genuinely secure.
The new regulations allow Pakistani banks to offer regulated cryptocurrency companies basic services. Account opening, transaction processing, and meeting operational requirements are all included in this. Crypto companies can now operate within regulated channels since they have access to the legitimate banking system for the first time.
Banks are still prohibited from using their own money or client deposits to invest in, trade, or keep cryptocurrencies notwithstanding this access. The division guarantees that the volatility of digital assets is not directly linked to the risks associated with traditional banking.
Pakistan has signed an agreement with Binance to explore tokenising up to $2 billion in assets, including bonds and commodities. The initiative focuses on testing how tokenisation could change the way assets are traded and managed within regulated channels. The government is also examining stablecoin-based systems for cross-border transactions. The aim is to lower remittance costs and improve access for overseas Pakistanis sending money back home.
Around 40 million people in Pakistan, about 17 per cent of the population, are engaged in crypto trading. This level of participation shows that digital assets have moved beyond niche use and are now part of mainstream financial activity. Pakistan ranks third, ahead of Germany and Japan, in terms of retail activity in Bitcoin marketplaces. This degree of adoption shows the country’s growing role in the global digital financial scene, with new laws aimed at integrating this activity into the formal economy.
During the ongoing ceasefire with the United States, Iran will require ships transiting the Strait of Hormuz to pay a cryptocurrency fee equivalent to $1 per barrel of oil carried, according to Hamid Hosseini, a spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union, as reported by the Financial Times.
The Strait of Hormuz, which handles around 20 per cent of global oil supply, was heavily disrupted during the recent conflict, pushing oil prices above $100 per barrel and impacting major importers such as India, China, and Japan. While the ceasefire has stabilised flows, the new transit fee and ongoing uncertainty continue to affect global energy markets and supply chains.
Iran has implemented a new policy that would impose a $1 fee on each barrel of oil shipped via the Strait of Hormuz. This may result in fees of about $2 million every trip for a supertanker hauling up to 2 million barrels. A substantial new expense in international energy trading would result from laden ships paying the full cost while empty vessels would not.
The plan’s demand that payments be made in Bitcoin is a noteworthy feature. Iran lessens the impact of sanctions by utilising bitcoin instead of relying on conventional financial institutions and the US dollar. According to analysts, this might change how energy is traded internationally and pose a threat to the established petrodollar system.
Iran’s new payment mechanism for oil exports through the Strait of Hormuz requires vessels to follow a certain reporting and authorisation process. Captains are required to email Iranian officials’ information about their cargo, especially the amount of oil on board. Officials review the data to verify compliance and search for aspects that are forbidden before permitting travel.
Hosseini told FT, “Once the email arrives and Iran completes its assessment, vessels are given a few seconds to pay in bitcoin, ensuring they can’t be traced or confiscated due to sanctions. Everything can pass through, but the procedure will take time for each vessel, and Iran is not in a rush.”
Once approval is given, ships must make the payment in Bitcoin within a very short time window. The narrow timeframe is intended to prevent transactions from being tracked or blocked under international sanctions.
Iran has wider geopolitical goals behind its new policy of charging $1 per barrel for oil exports over the Strait of Hormuz. Iran is directly opposing the long-standing petrodollar system, in which oil has historically been traded in US dollars, by demanding payment in Bitcoin.
The strategy also shows how to evade Western sanctions. Because cryptocurrency transactions avoid conventional banks and financial intermediaries, they are more difficult to stop or track. For Iran, this approach provides greater financial independence while reinforcing its control over one of the world’s most critical energy routes. The combination of revenue generation and sanction resistance highlights the dual purpose behind the shift.
Iran’s decision to link oil transit fees in the Strait of Hormuz to Bitcoin highlights how cryptocurrency is being tested in global trade. The decentralised nature of Bitcoin makes it harder to block or censor, which is why Iran views it as a way to bypass sanctions.
However, using cryptocurrencies for oil transactions carries several dangers. Price volatility, liquidity problems, and regulatory ambiguity could hinder its wider adoption. It is difficult to sustain a broad reliance on Bitcoin in the energy sector because of these factors.
Iran’s action raises the prospect of a slow transition to alternate payment methods. If more countries follow this path, the global economy could become more fragmented, with multiple currencies competing for influence in energy and trade.
Artificial intelligence (AI) is being quickly incorporated into business operations, but worries about possible legal repercussions are mounting. Raj Kapoor, Founder of the India Blockchain Alliance (IBA), spoke exclusively at AIBC Eurasia 2026 in Dubai, cautioned that businesses could suffer large financial losses if AI systems use unreliable data or break copyright and intellectual property regulations.
Kapoor highlighted that many risks remain unnoticed until legal action is taken, at which point the impact can be severe. He emphasised the need for stronger compliance and oversight as AI adoption accelerates across industries.
Walk into any tech conference and the question seems to find you before you even take your seat: is artificial intelligence coming for blockchain, or are the two quietly building something together? The debate has been loud and persistent, fuelled by AI’s dominance of headlines and investor attention. But Kapoor is quick to dismiss the idea. For him, the tension is overstated, and the narrative of rivalry misses the bigger picture of how the two technologies are increasingly positioned to complement, rather than compete with, one another.
“AI is the brain, blockchain is the spine,” he said. “They can’t work without each other. They have to coexist.”
Just as blockchain rose to mainstream consciousness on the back of Bitcoin’s rebellious energy, generative AI found its moment in the sun with ChatGPT. Both technologies, Kapoor pointed out, have been around far longer than most people realise.
“Machine learning and AI have been there for 40, 50, 60 years, almost. But ChatGPT, generative AI, and now agentic AI made it very palatable,” he said.
But beyond the hype, Kapoor sees intrinsic value in both and, more importantly, in how they complement each other. AI moves fast and processes at scale. Blockchain keeps it honest. “While AI can go random, blockchain keeps it in check.”
For businesses rushing to adopt AI, Kapoor has a word of caution wrapped inside an opportunity. Many companies jump onto the AI bandwagon without stopping to ask: Are we violating any laws, any copyrights, any intellectual property rights?
“They start creating AI products. And then all the millions of dollars they put into the system become zero because somebody’s filed a lawsuit,” he warned.
This is exactly where blockchain steps in. According to Kapoor, blockchain audits every step of the AI process, from where the data came from, to how it was used to train large language models, to the veracity of the information fed into the system.
“It’s like an auditor. It keeps that check,” he said. “If businesses incorporate both of these, they will be much better off because then one balances the other. There are checks and balances in place.”
Without that balance, he believes both technologies remain dangerously opaque. “It’s the Wild West for both of them. Both technologies don’t have many rules and regulations, clarity, both are opaque, people can have a ball.”
Source: AIBC World/YouTube.
Blockchain is one of the climate debate’s most contradictory technologies. A United Nations University-backed analysis found Bitcoin mining used about 173 terawatt hours of electricity in 2020–2021 and generated roughly 85.89 million tonnes of CO2, with 67 per cent of that electricity coming from fossil fuels. Yet the same underlying tech is also being used to support climate accountability, with the European Commission pointing to blockchain’s potential to improve emissions tracking, transparency and traceability across supply chains.
Ethereum shows how quickly the picture can change. After moving to proof-of-stake, the network cut its energy use by about 99.95 per cent, highlighting that blockchain’s environmental impact depends heavily on design choices. When the conversation turned to sustainability, Kapoor did not offer platitudes. He offered a project. The world’s seas and oceans, he said bluntly, are on a 12-to-15-year countdown if current trends continue.
His response? A citizen scientist platform called Sea. Earth, which he describes as a trifecta of blockchain, AI, and analytics. Blockchain ensures the data is tamper-proof and traceable. AI processes what would otherwise be hundreds of terabytes of information in minutes.
“Had this been there maybe 15, 20 years back, we would not have ice melting and weather patterns changing the way they are,” Kapoor reflected. “Maybe now there may be a way of stopping them.”
Kapoor’s concern for the planet does not stop at the ocean’s edge. Back home in India, the stakes are just as high, and the problems are far older. India has long struggled with systems that were never built for the scale they now serve. Land disputes drag through courts for decades. Documents get forged. Middlemen thrive in the gaps. Kapoor sees blockchain not as a futuristic fix but as an overdue correction, and he is already in the thick of it.
He points to three areas where the technology is beginning to move the needle, starting with the one that costs ordinary Indians the most. Land records have long been a legal minefield in the country, particularly in Tier 2 and Tier 3 cities and rural areas where documentation is thin and oral inheritance is common. According to India’s Supreme Court, property disputes account for an estimated 66 per cent of all civil cases in the country. The World Bank’s Ease of Doing Business Index has historically ranked India at 154th in the “registering property” category.
“This has been happening for hundreds of years,” Kapoor said. “There is no clarity on who owns what. Somebody’s father has a farm, and he’s passed it on to his sons. There’s no transparency in titleship.”
The shift is already underway. Andhra Pradesh, in collaboration with blockchain firm Zebi, implemented a pilot project that reportedly reduced land disputes by 50 per cent and improved transaction efficiency by 30 per cent. More recently, the Dantewada district in Chhattisgarh announced the digitisation of over 700,000 land documents dating back to the 1950s, now secured on the Avalanche blockchain.
The idea is simple but powerful: a land passport, immutable and individual, sitting on a blockchain. “It’s just like your own passport. It’s yours. Nobody else’s. You can’t fake it.”
E-notaries are the second front. Through a project with Knapp Books Limited, Kapoor’s team is working to put India’s notary system entirely on the blockchain, a direct response to historical scams like the Telgi stamp paper fraud, in which government documents were forged and misused on a massive scale. This is part of a broader national push: India’s National Blockchain Framework, launched in September 2024 with an initial budget of ₹64.76 crore, provides a unified architecture for deploying blockchain solutions across government services, with land records, public distribution, and document verification all on the roadmap.
With more than 55 per cent of India’s economy rooted in agriculture, Kapoor sees blockchain as the missing link between a farmer’s field and a consumer’s table. According to Future Market Insights, India is projected to grow at a 45 per cent CAGR in blockchain agriculture adoption over the next decade.
Meanwhile, according to market data cited by Straits Research, the global blockchain agriculture and food supply chain market was valued at just under $400 million in 2024 but is expected to reach over $8 billion by 2033, a trajectory that reflects just how seriously governments and agribusinesses are beginning to treat traceability as a non-negotiable. For India, where a mango’s origin or a grain’s authenticity can mean the difference between a fair price and a fraudulent one, that shift cannot come fast enough.
The UK Government will ban cryptocurrency donations to political parties as part of a wider effort to tackle foreign interference in British democracy, Prime Minister Keir Starmer has confirmed.
The move follows a review led by senior civil servant Philip Rycroft, which examined the risks posed by overseas money entering UK politics. As reported by the BBC, ministers have accepted key recommendations, including a prohibition on crypto donations and a cap on contributions from British citizens living abroad.
According to ministers, cryptocurrency transactions pose a particular threat because of their potential anonymity. Speaking in Parliament, Steve Reed said such donations could make it easier to obscure the true source of funds.
He warned that this creates “a clear route” for illicit money to enter the political system, undermining public confidence in elections. The ban on crypto donations will apply to contributions of any amount and will remain in place until stronger regulatory safeguards are introduced.
Alongside the crypto ban, the government will limit political donations from British citizens living abroad to £100,000 per year. Any donations exceeding this threshold will need to be returned within 30 days once the rules take effect, or parties could face criminal penalties.
The new cap will apply across all UK elections, including upcoming local and devolved votes. Ministers plan to implement the changes through amendments to the Representation of the People Bill.
The issue has drawn particular attention because Reform UK is the only Westminster party known to have explored cryptocurrency donations. Its leader, Nigel Farage, previously said the party would accept Bitcoin contributions and confirmed it had already received a small number of such donations.
Farage criticised the government’s decision, arguing it risks excluding younger voters who are more likely to hold digital assets. He said cryptocurrencies are owned by around 25 percent of people under 30 and questioned whether the policy would limit democratic participation.
The party maintains that all its donations comply with existing rules, including checks on contributions over £500 to ensure they come from permissible sources.
The review was commissioned following a series of high-profile cases involving foreign interference in UK politics. These included the conviction of former MEP Nathan Gill and an earlier security alert linked to alleged influence operations.
The report concluded that the threat from foreign money is “real and persistent”, highlighting the need for stronger safeguards. Additional proposals, such as banning foreign-funded online political advertising, are still under consideration by ministers.
Recent donation data has intensified the debate. Electoral Commission figures show Reform UK received a record £9 million contribution from businessman Christopher Harborne, a British national based overseas. Fresh Electoral Commission data confirmed that it is the largest single donation ever made by a living individual to a UK political party.
Critics within Reform UK argue the government is moving quickly to restrict funding channels used by political rivals. Party figures have accused ministers of limiting lawful donations under the guise of reform.
Starmer said the government would act “decisively” to protect the integrity of UK elections. While not all recommendations from the Rycroft review have been adopted yet, the crypto ban and overseas donation cap mark the first concrete steps in tightening political finance rules.
This comes after UK lawmakers pushed for a ban on crypto political donations as they raise questions about transparency and security. Cryptocurrency transactions, unlike typical bank transfers, can be quick, cross-border, and difficult to track, making it harder to verify whether contributions actually originate from reputable UK donors.
The chair of the United Kingdom’s national security committee, Matt Western, called for a temporary ban on cryptocurrency donations to political parties in February. After examining political financing issues, the committee, which consists of peers and MPs, concluded that the current security measures would not be sufficient to manage cryptocurrency transactions.
Vietnam is moving to establish its first licensed cryptocurrency exchanges as authorities seek to regulate trading in one of the world’s most active crypto markets. The government plans to launch a pilot programme for locally operated digital-asset platforms, with five companies—including affiliates of Techcombank, VPBank, LPBank, VIX Securities, and Sun Group. Having passed an initial qualification round, according to a Finance Ministry document reported by Reuters.
Sun Group and VPBank have confirmed they have applied for licences, while the other firms have yet to respond to requests for comment. A Finance Ministry spokesperson said authorities are continuing to review the process but declined to comment on individual applicants.
Earlier on January 20, 2026, Vietnam launched a pilot programme for licensed cryptocurrency exchanges as part of efforts to regulate its fast-growing digital asset market. The framework, overseen by the State Securities Commission with licensing rules set by the Ministry of Finance, is designed to run for five years and initially allows around five exchanges to operate under strict supervision, aiming to improve oversight, limit capital outflows, and strengthen consumer protection.
Several important Vietnamese organisations are contesting cryptocurrency trading licences. The entry of Techcombank, one of the largest private banks in the country, suggests that traditional finance is starting to show more interest. Its strong background in digital banking could help with the incorporation of bitcoin services if approved.
In an effort to establish itself early in a market that it believes has long-term promise, VPBank has also verified its application. Several banks are hesitant to remain on the sidelines, as evidenced by LPBank’s participation as well, but nothing is known about its strategy.
Beyond banking, VIX Securities is applying its experience in trading and investor behaviour, while Sun Group, a major conglomerate, has also stepped in. Sun Group’s participation reflects how crypto is drawing attention from diverse sectors, not just financial institutions, as companies look to expand into digital finance.
Despite the lack of legal infrastructure up until now, Vietnam has become the fourth most active cryptocurrency market in the world, with yearly transactions topping $200 billion. As more individuals interact with digital assets, activity keeps increasing, and the emergence of licensed exchanges—which provide a controlled environment—is anticipated to provide additional momentum.
In contrast to economies where institutions predominate, a large portion of this increase is driven by retail investors. A substantial portion of participants are professionals, students, and small business owners who see cryptocurrency as a means of accumulating wealth. This broad participation has accelerated adoption, but it also emphasises the need for more regulation and education to shield people from dangers like fraud and financial loss.
Domestic exchanges in Vietnam are being positioned as an alternative to global platforms. Supporters argue they provide stronger regulatory oversight, better security, and easier integration with local banking systems, while also keeping transaction fees and profits within the country.
However, there are still difficulties. At first, local exchanges could have trouble with liquidity and lack some of the sophisticated features provided by global platforms. Successful domestic exchanges might boost state revenue and foster the expansion of Vietnam’s digital economy, according to Phan Duc Trung, chairman of the Vietnam Blockchain and Digital Assets Association. Additionally, he issued a warning that the legal system is still lacking, especially in areas like risk management, taxation, and oversight.
Vietnam’s cryptocurrency market is expected to keep expanding, and future developments will likely be greatly influenced by regulations. If clear policies are implemented, the country might become a regional leader in digital finance.