Asia’s crypto landscape continues to evolve rapidly as governments adjust regulations, financial hubs compete for digital-asset businesses and AI becomes increasingly important to blockchain security.
Thailand has introduced a five-year 0% capital gains tax exemption for crypto transactions on regulated platforms, while a Bitcoin security researcher says restrictions from OpenAI have pushed him toward Chinese open-source AI models. Elsewhere, Asian regulators are tightening crypto safeguards, Singapore’s Bitdeer dramatically increased Bitcoin mining output, and Bybit continues efforts to recover funds stolen in the $1.5 billion North Korea-linked hack.
Thailand Introduces 0% Capital Gains Tax on Regulated Crypto
Thailand is offering crypto investors a major tax incentive as the country attempts to strengthen its position as a regional digital-asset hub.
Under the new framework, capital gains from crypto transactions conducted through platforms licensed by Thailand’s Securities and Exchange Commission will receive a 0% tax rate for five years, covering transactions from January 1, 2025, through December 31, 2029.
The measure is designed to encourage investment activity and attract crypto businesses and digital-asset investors to Thailand.
However, the benefit does not extend to transactions conducted through unlicensed or overseas platforms. Those trades can remain subject to Thailand’s standard personal income tax rates, which can reach as high as 38%.
The new treatment effectively places regulated crypto transactions on a similar tax footing to capital gains from traditional securities.
Thailand had previously removed its 7% value-added tax on certain cryptocurrency transactions in 2024.
China
Bitcoin Security Researcher Turns to Chinese AI Models
Rob Hamilton, founder of Bitcoin Red Team, says restrictions on his access to advanced AI tools have forced him to rely on open-source Chinese AI models for parts of his Bitcoin security research.
Hamilton argued that security researchers need access to powerful AI systems because defenders are increasingly competing against attackers who can use similar technologies without restrictions.
He warned that limiting AI access for legitimate security researchers could create an unintended imbalance.
His concern is particularly relevant to blockchain security, where researchers routinely analyze large codebases and infrastructure for vulnerabilities before malicious actors can exploit them.
The Bitcoin Policy Institute and several blockchain companies have subsequently called on leading AI laboratories to establish trusted access programs for qualified cybersecurity and digital-asset researchers.
The broader debate highlights a growing challenge for AI policy: ensuring that safety restrictions do not unintentionally leave legitimate defenders with weaker tools than malicious actors.
China Crypto Crime Brief
A man in Shenzhen was convicted of attempted extortion after allegedly stealing confidential research and development information from his employer and pretending to be an overseas hacker.
He reportedly demanded Bitcoin as ransom after claiming responsibility for the theft.
Asia-Pacific
APAC Onchain Activity Jumps 68%
Blockchain activity across the Asia-Pacific region is accelerating.
A report from Hashed Open Research and SCBX found that onchain transaction volume across APAC increased 68% year over year, rising from approximately $1.4 trillion to $2.36 trillion.
The region recorded the fastest growth globally, with Southeast Asian markets accounting for a significant portion of the increase.
The report also highlighted the rapid adoption of mobile payments across Asia.
Many consumers effectively moved from cash directly toward mobile payments, bypassing traditional card and banking infrastructure.
Digital payments now account for approximately 60% of payments across the region, creating a potentially strong foundation for the next stage of blockchain-based financial infrastructure.
CLARITY Act Delay Creates Opportunity for Asian Crypto Hubs
The US Senate’s decision to delay action on the CLARITY Act until September could give Asian financial centers additional time to attract digital-asset companies, according to First Digital CEO Vincent Chok.
Chok argued that the delay could benefit jurisdictions such as Hong Kong and Singapore, where regulators are attempting to establish clearer frameworks for digital assets.
The CLARITY Act is intended to establish a more comprehensive US crypto market structure. Continued uncertainty around the legislation could encourage institutional investors and crypto companies to explore jurisdictions offering clearer regulatory pathways.
For Asian financial centers, the competition is increasingly about combining regulatory certainty with access to institutional capital and technological innovation.
North Korea
US Court Supports Bybit’s Effort to Trace $1.5B Hack
A US federal judge has supported Bybit’s efforts to investigate and trace cryptocurrency stolen in the $1.5 billion North Korea-linked hack in February 2025.
Bybit filed a lawsuit against North Korea, its Reconnaissance General Bureau, the Lazarus Group and unidentified defendants.
The court granted Bybit expedited discovery, providing the exchange with a legal mechanism to investigate intermediaries and identify assets that may still be recoverable.
However, the recovery challenge remains substantial.
Bybit told the court that approximately 90.2% of the stolen assets had become untraceable after passing through mixers, cross-chain bridges and over-the-counter networks.
Around 9.8% of the stolen funds remain traceable, including approximately 5.3% of the total that has reportedly been frozen or recovered.
Bybit is seeking the return of the stolen assets as well as approximately $1.5 billion in damages.
South Korea
Upbit Operator Selected to Hold Seized Crypto
Dunamu, the company behind South Korean crypto exchange Upbit, has been selected by the country’s National Police Agency to provide custody services for seized cryptocurrency over the next year.
Dunamu reportedly received the highest technical evaluation score, achieving 94.14 points during the selection process.
The arrangement reflects the growing need for governments and law enforcement agencies to maintain secure custody infrastructure for cryptocurrency seized during criminal investigations.
Japan
Japan Moves Toward Mandatory Crypto Withdrawal Delays
Japan’s Financial Services Agency is asking cryptocurrency exchanges to introduce additional safeguards to combat scams and fraudulent transfers.
The proposed measures include delaying crypto withdrawals after customers deposit fiat currency or purchase digital assets.
Exchanges have also been asked to require users to pre-register withdrawal addresses and introduce waiting periods before newly added addresses can be used.
The measures were developed jointly with Japan’s National Police Agency amid growing concerns about scammers convincing victims to transfer funds into cryptocurrency accounts.
The approach reflects a broader shift toward treating transaction speed itself as a potential security risk.
Rather than allowing suspicious funds to leave an exchange immediately, platforms could be required to introduce a cooling-off period that provides additional time to identify fraudulent activity.
Japan Market Brief
The Tokyo Stock Exchange plans to introduce a re-examination framework for listed companies undergoing major changes in their business models.
Although digital-asset treasury companies were not specifically named, the new framework could potentially become relevant to companies that significantly transform their core business around cryptocurrency holdings.
Taiwan
Taiwan to Introduce Crypto Travel Rule for Domestic Transfers
Taiwan’s Financial Supervisory Commission plans to require cryptocurrency platforms to transmit customer information for domestic platform-to-platform transfers starting in October.
The rules will apply regardless of transaction value.
Transfers exceeding NT$30,000, approximately $930, will trigger additional information requirements.
For individual users, this can include information such as date of birth and residential address. Corporate transactions will require relevant identification and registered-address information.
Receiving virtual-asset service providers will also need to compare beneficiary information supplied by the originating platform with their own records.
Taiwan plans to expand the framework to transfers involving domestic and overseas crypto platforms by the end of 2027.
Singapore
Bitdeer Nearly Quintuples Bitcoin Mining Output
Singapore-based Bitcoin miner Bitdeer significantly increased production during the second quarter of 2026.
The company mined 2,694 BTC during Q2, nearly five times the 565 BTC produced during the same period a year earlier.
Despite the sharp increase in production, Bitdeer’s Bitcoin holdings fell substantially.
The company ended the quarter with approximately 150 BTC, down from 1,502 BTC a year earlier.
Bitdeer previously liquidated its remaining 943 BTC treasury in February, citing liquidity considerations while maintaining its commitment to Bitcoin mining operations.
The numbers highlight the difference between Bitcoin production and treasury strategy: a miner can significantly increase output while simultaneously maintaining a relatively small Bitcoin balance.
Singapore Wealth Brief
UBS is increasing its focus on Singapore’s wealthy population.
Over the past 25 years, the number of Singapore residents holding between $5 million and $10 million has grown at an annualized rate of approximately 8%.
Singapore now has an estimated 27,000 residents with wealth between $5 million and $100 million.
Hong Kong
Binance-Linked Companies Sue RedotPay Over Alleged $473M Losses
Companies affiliated with Binance have reportedly filed a lawsuit against the founders of Hong Kong-based cryptocurrency payments company RedotPay.
The plaintiffs allege that RedotPay diverted more than 470,000 users from Binance Card, allegedly violating the terms of a commercial agreement.
The lawsuit seeks nearly $473 million in damages.
The legal dispute comes as RedotPay considers a potential public listing.
RedotPay has rejected the allegations and said it intends to defend itself through the appropriate legal process.
The case remains unresolved, and the allegations have not been established in court.
Hong Kong Crime Brief
Hong Kong police arrested a 67-year-old woman accused of defrauding property owners of approximately $510,000.
According to reports, she allegedly posed as a prospective tenant and offered to pay rent in advance.
She reportedly provided victims with a phone containing what appeared to be a legitimate cryptocurrency application. The application allegedly contained malware that gave criminals control over the wallet after it was funded.
Vietnam
Vietnam Prepares for Wider RWA Tokenization
Vietnam is developing a regulatory framework for the tokenization of real-world assets.
Discussions at the Vietnam RWA Summit focused on establishing the groundwork required to bring traditional assets onto blockchain-based infrastructure.
The country’s securities regulator and Vietnam Blockchain Association are among the organizations involved in developing the framework.
The initiative reflects a broader regional trend toward using blockchain for the representation and settlement of traditional financial and physical assets.
Vietnam Moves to Bring Crypto Under AML Rules
Vietnam’s central bank governor has presented a draft law that would bring cryptocurrency service providers under the country’s anti-money-laundering framework.
Under the proposal, crypto businesses would become reporting entities and would be required to monitor transactions and identify suspicious activity.
The framework also proposes indicators specifically designed to detect suspicious behavior involving digital assets.
Asia’s Crypto Strategy Is Becoming Clearer
The latest developments across the region point to a broader transformation in Asia’s crypto market.
Governments are increasingly moving beyond the question of whether cryptocurrency should be permitted and toward deciding how it should be taxed, regulated and integrated into the financial system.
Thailand is attempting to attract capital through tax incentives. Hong Kong and Singapore are competing through regulatory clarity. Japan and Taiwan are strengthening transaction controls, while Vietnam is preparing more comprehensive AML and tokenization frameworks.
At the same time, blockchain adoption continues expanding across payments, stablecoins, tokenized assets and financial infrastructure.
The result is a region moving in different regulatory directions but toward a common objective: bringing digital assets closer to mainstream financial markets without giving up control over financial crime and consumer protection.
For crypto companies, the next major battleground may therefore not simply be technological innovation.
It may be which jurisdiction can offer the best combination of regulation, capital, infrastructure and access to users.
