Asia’s crypto sector witnessed a week of major developments spanning cybersecurity, regulation and blockchain innovation. Binance revealed it has been testing employees with simulated phishing attacks for years to strengthen internal security, India moved to restrict access to the open-source messaging app BitChat, and Balaji Srinivasan’s Network School found a new home in Kazakhstan after regulatory challenges in Malaysia.
Binance Runs Monthly Phishing Tests on Employees
Crypto exchange Binance has been conducting monthly simulated phishing campaigns against its own workforce for the past four years as part of its cybersecurity strategy.
According to Chief Security Officer Jimmy Su, the company’s internal “red team” regularly sends fake phishing emails to employees to measure security awareness and identify weaknesses before real attackers can exploit them.
Employees who fall for the simulations undergo mandatory security training, while repeated failures may lead to disciplinary action, including termination in some cases.
The initiative reflects growing concern over social engineering attacks, which blockchain security firm AMLBot estimates accounted for nearly 65% of crypto-related security incidents in 2025.
India Orders GitHub to Restrict BitChat Repositories
India’s cybercrime authorities have directed GitHub to disable access to repositories hosting BitChat, the decentralised messaging application created by Jack Dorsey.
Officials argued that the Bluetooth-based messaging platform could potentially be used to bypass internet shutdowns, evade lawful surveillance and facilitate illegal activities.
The repositories were reportedly ordered to be removed within a short compliance window.
Digital Rights Groups Push Back
The Internet Freedom Foundation (IFF) criticised the government’s action, describing the takedown order as unconstitutional and warning that restricting open-source software could undermine free expression and innovation.
BitChat enables encrypted communication between nearby devices using Bluetooth without requiring internet connectivity or centralised servers.
Since its launch in July 2025, the application has gained popularity in regions experiencing internet disruptions or communication blackouts, including parts of Madagascar, Nepal, Uganda, Jamaica and Iran.
India Tightens Crypto Tax Reporting
Separately, India’s Central Board of Direct Taxes (CBDT) has issued new guidance requiring cryptocurrency exchanges to report transaction data directly to tax authorities.
The move forms part of the country’s broader effort to improve oversight and tax compliance within the digital asset industry.
Network School Heads to Kazakhstan
Entrepreneur Balaji Srinivasan’s Network School is preparing to establish operations in Kazakhstan after plans in Malaysia were derailed by regulatory issues.
Kazakhstan’s Ministry of Digital Development has signed a memorandum of understanding with Srinivasan to launch a campus in the country, reinforcing Kazakhstan’s ambition to become a regional blockchain and technology hub.
The Central Asian nation has also announced plans to develop Alatau as its first dedicated crypto city, aimed at attracting blockchain companies, digital asset businesses and emerging technology startups.
Malaysia Project Faced Regulatory Challenges
Network School’s departure follows Malaysian authorities revoking the project’s business licence over alleged violations related to the use of its premises.
The project also attracted international attention after controversy surrounding participants with Israeli citizenship, prompting diplomatic discussions involving Malaysian and US officials.
Asia’s Crypto Landscape Continues to Evolve
This week’s developments highlight the diverse challenges shaping Asia’s digital asset ecosystem.
While exchanges such as Binance are investing heavily in cybersecurity to counter increasingly sophisticated attacks, governments across the region are introducing stricter oversight of crypto platforms and decentralised technologies. At the same time, countries including Kazakhstan continue positioning themselves as attractive destinations for blockchain innovation, underscoring the region’s growing influence in the global digital asset industry.
