Bhutan Partners With Bitdeer on Crypto Mining Fund

A regulatory divide regarding the digital asset sector is emerging across Asia. While China is moving to strengthen its prohibition on cryptocurrency operations to ensure financial stability, Central Asian states such as Kazakhstan and Turkmenistan are increasingly formalizing frameworks to integrate and regulate the industry.Photo by Road Ahead on UnsplashChina cites renewed crypto speculationAccording to Reuters, the People’s Bank of China (PBOC) has reaffirmed its prohibition on business activities involving digital assets, citing a renewed wave of speculation as a complication in managing financial risks. At a Nov. 28 meeting on crypto regulation, the central bank reiterated that commercial activity involving cryptocurrencies remains illegal. PBOC officials stated that enforcement against unlawful financial operations tied to cryptocurrencies would be intensified to safeguard economic stability. The central bank identified stablecoins as a primary concern, noting that they fail to meet customer identification standards and broader anti-money laundering (AML) requirements. Officials warned that these assets could create vulnerabilities to fraud, money laundering, and unregulated cross-border capital flows. Kazakhstan mulls $300M crypto moveIn contrast to Beijing’s elevated oversight, Kazakhstan is exploring the integration of digital assets into its financial reserves. According to BeInCrypto, National Bank Chairman Timur Suleimenov indicated on Nov. 28 that the monetary authority is considering an allocation of up to $300 million into crypto assets. However, he clarified that deploying the full amount is unlikely. Suleimenov explained that any potential investment would be drawn from the central bank’s gold and foreign-exchange reserves rather than the National Fund. He added that the National Bank of Kazakhstan intends to wait for market conditions to stabilize, citing recent volatility as a factor making the timing of such an investment uncertain. The latest development comes after Bloomberg Law reported last month that the country is preparing to launch a crypto reserve fund valued between $500 million and $1 billion as early as next year. This proposed fund is expected to target exchange-traded products and industry-related companies rather than direct crypto purchases, with capital potentially sourced from repatriated assets and mining proceeds. Simultaneously, the government is advancing physical infrastructure for the sector. In May, President Kassym-Jomart Tokayev unveiled plans for a "CryptoCity" pilot zone in the Alatau development north of Almaty. Under this government-approved sandbox program, authorities are testing blockchain-based tools for taxation, investment, and decentralized identity systems, with the aim of positioning Kazakhstan as a regional hub for innovation. Turkmenistan to launch licensing rulesFurther deepening the regional trend toward adoption, Turkmenistan has moved to establish a formal legal infrastructure for the sector.  Another Reuters report said the country recently passed legislation to legalize and regulate digital assets, which President Serdar Berdymukhamedov has signed into law. Scheduled to take effect on Jan. 1, the legislation creates a licensing regime for crypto exchanges and mining operations. A government spokesperson said the law spells out the legal and economic status of virtual assets, covering their creation, storage, circulation, and other functions, and aims to boost digitalization and draw foreign investment. Despite their differing approaches, the three countries reflect a shared recognition of digital assets’ growing relevance in global finance. China continues to view cryptocurrencies as a source of systemic risk, while Kazakhstan and Turkmenistan are testing whether regulation, licensing, and selective investment can deliver economic gains without compromising stability. Together, these diverging paths underscore a broader debate over whether engagement or exclusion offers a more resilient long-term model. 

South Korean cryptocurrency exchange Flybit, which is operated by the Korean Fintech Industry Association, has passed the post-audit for its Information Security and Privacy Management System certification (ISMS-P), according to local news website News1 on Wednesday (KST).Photo by FlyD on UnsplashRigorous certification standardsThe ISMS-P is a security management system jointly operated by South Korea’s Ministry of Science and ICT and the Personal Information Protection Commission, representing the highest level of security management in the country. It combines 80 requirements for Information Security Management System (ISMS) certification and 22 requirements for Personal Information Management System (PIMS) certification, totaling 102 requirements that must be met. Once obtained, certification is valid for three years, and annual post-audits are required to maintain its validity. Flybit’s commitment to security"Cryptocurrency exchanges are businesses that manage customers' valuable assets. All Flybit members approach their work by recognizing the fact that the protection of personal information is our most important value,” the exchange said. "We will continually strive to maintain security accidents since the establishment of the exchange." Flybit first obtained the ISMS certification in December 2020 and the ISMS-P certification two years later in December 2022. The most recent ISMS-P follow-up audit was conducted last month. After a thorough examination, the results of the audit were delivered by the Korea Internet and Security Agency (KISA) on Dec. 12, which stated that the exchange could maintain its certification. In October last year, the firm also received the highest rating in the comprehensive anti-money laundering (AML) evaluation conducted annually by the Financial Intelligence Unit (FIU) under the Financial Services Commission.

Iranian authorities last week introduced new restrictions on stablecoin transactions, limiting individuals to an annual purchase cap of $5,000 and a total holding limit of $10,000. According to a report from Iran International, licensed digital platforms have one month from the effective date to enforce these new regulations on all users.Photo by Hadis Malekie on UnsplashRial decline fuels stablecoin uptakeThe move coincides with the continued devaluation of the national currency, with the Iranian rial reaching an all-time low of 1,136,500 per U.S. dollar on Sept. 27. This currency plunge occurred just before the reimposition of United Nations sanctions, which took effect at 00:00 UTC on Sept. 28. Since then, the rial has weakened further, reaching a new low of 1,170,000 per U.S. dollar as of publication, as per data from Bonbast.  For many Iranians, stablecoins like USDT have become an essential financial tool, providing a hedge against inflation and a means to transfer funds internationally, bypassing the traditional banking system. The adoption of these U.S. dollar-pegged digital assets has reportedly grown since the escalation of conflicts with Israel and the U.S. earlier in the year. These new financial controls follow recent actions by the U.S. to counter what it describes as Iranian "shadow banking" networks. On Sept. 16, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two Iranian financial operatives and their network of companies in Hong Kong and the United Arab Emirates (UAE). A press release stated these entities used cryptocurrency and front companies to transfer funds from oil sales, benefiting Iran’s IRGC-Qods Force (QF) and its Ministry of Defense and Armed Forces Logistics (MODAFL). The U.S. Treasury asserts these funds are funneled into regional proxy groups and the development of advanced weapons programs.U.S. dollar to rial chart Source: BonbastHack on Iran’s top crypto platformIran’s private digital currency sector has also faced mounting security pressures. In June, Nobitex, the country’s largest crypto exchange, was hit by a major exploit that drained about $90 million in assets, including Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), Tron (TRX), and TON. A pro-Israel hacker group known as Predatory Sparrow, or Gonjeshke Darande, later claimed responsibility in a post on X. The attack took place during heightened military tensions that began with Israeli strikes on Iranian military and nuclear facilities on June 18, 2025. According to analysis by TRM Labs, digital assets are increasingly integral to Iran's efforts to navigate international sanctions and advance its geopolitical interests. Iranian exchanges, including Nobitex, process billions in cryptocurrency transactions. These platforms have been noted for permitting large withdrawals without stringent Know Your Customer (KYC) protocols and for employing sophisticated methods to obscure the origins and destinations of funds. At the same time, these exchanges are not used solely for state-level purposes. For many ordinary Iranians, grappling with inflation and economic isolation, digital assets represent a practical tool for safeguarding savings and maintaining limited access to the global economy, underscoring the dual role that cryptocurrency plays in the country.