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Vietnam has launched a five-year pilot program imposing stringent new rules on the cryptocurrency industry, signaling a move toward tighter control over the rapidly growing sector. According to a Sept. 9 report from the Government Electronic Newspaper, cited by Cointelegraph, the resolution put the regulatory framework into immediate effect. The move aims to establish clear rules for the trading and issuance of crypto assets in the country.Photo by Silver Ringvee on UnsplashLocal currency and licensing requirementsUnder the new pilot program, all crypto transactions must be conducted in the local currency, the Vietnamese dong. The rules stipulate that only Vietnamese-registered enterprises may issue digital assets, while foreign investors can access them only through crypto asset service providers (CASPs) licensed by the Ministry of Finance. Firms seeking a license face high barriers to entry. Applicants must demonstrate profitable business operations for the two consecutive years preceding their application. Furthermore, CASPs are required to maintain a minimum capital of 10 trillion dong (approximately $379 million). The pilot also places firm restrictions on the nature of crypto assets themselves. They must be backed exclusively by real, tangible assets. The issuance of assets backed by fiat currencies or securities is prohibited. Broader legal contextThis pilot program follows the country's decision in June to officially legalize digital assets, with the new law set to take effect on Jan. 1, 2026. The legislation categorizes digital assets into two types: virtual assets, used for exchange or investment, and crypto assets, which rely on encryption for validation. The law clarifies that neither category includes securities, digital representations of fiat currency, or other financial instruments already defined under existing civil and financial laws. The framework also mandates that regulatory agencies implement robust measures to ensure cybersecurity and combat money laundering and terrorism financing. High adoption and tech initiativesThe government's focus on regulation comes as no surprise, given Vietnam's position as a global leader in cryptocurrency adoption. A recent study by Chainalysis ranked Vietnam fourth in its 2025 Global Crypto Adoption Index, highlighting widespread grassroots activity across both centralized and decentralized platforms, similar to trends seen in India and Pakistan. Beyond regulation, Vietnam is actively leveraging blockchain technology for national infrastructure. The government has deployed NDAChain, a national blockchain platform designed to authenticate and trace data origins. Developed by the National Data Association, it aims to provide a decentralized layer of trust for critical systems in e-government, finance, healthcare, and education, addressing the vulnerabilities of centralized data models. Hanoi's crypto ambitions also extend beyond its borders. Last month, Vietnam's Military Bank signed a memorandum of understanding (MOU) with Dunamu, the operator of South Korea’s largest crypto exchange, Upbit. The partnership is aimed at developing Vietnam’s financial landscape, with Dunamu providing expertise on establishing a crypto exchange, building a regulatory framework, and implementing investor protection measures. 

Financial regulators in Hong Kong are moving towards the presentation of stablecoin legislation following the completion of a consultation process. In February of this year, that consultation process, which received 108 submissions from professional bodies and industry stakeholders, was completed. It was run jointly by The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA), culminating in the publication of the results of the process.Photo by Pat Whelen on UnsplashLegislative proposal publishedOff the back of that prior body of work, the regulators have now published a legislative proposal, incorporating responses to issues that were brought to light via the consultation process. The regulators concluded that going forward, stablecoin regulation should be considered primarily in terms of those stablecoin assets which operate on a ledger which runs on a decentralized basis. Additionally, no individual or unilateral entity should have the ability to tamper with or control those assets or the network upon which they exist. On this basis, the regulators intend to submit a bill relative to fiat-referenced stablecoins for consideration to the Legislative Council at a later stage in 2024. Before submitting any legislative proposal, the regulators plan to once again consult with stakeholders prior to finalizing any such proposal. As part of what they have set out thus far, regulators are looking to include a requirement for any stablecoin issuer to obtain a license in Hong Kong.  Reserve asset requirementsThey remain open to the idea that reserve assets backing an issued stablecoin could be held in an overseas jurisdiction. However, if the issuer is an overseas entity, it will be required to establish a local corporate entity in Hong Kong, with relevant management personal based within the Chinese autonomous territory. In light of feedback received during the consultation process, the regulator is looking at reducing the attestation frequency that each stablecoin issuer will be required to provide via an independent auditor in order to verify that the stablecoins issued are backed by the requisite amount of liquid assets.  Such reserve assets must be segregated from the working capital of the stablecoin issuer’s business, with the HKMA expressing a preference for a trust-like structure following input via the consultation process. Furthermore, reserve assets must be deemed to be both high quality and highly liquid, which would include cash, bank deposits and government issued securities where counterparty risk is minimized. On the basis that the Hong Kong dollar is pegged to the U.S. dollar, the regulator is content to allow issuers to use USD-denominated reserve assets if they prefer to do so. The legislative proposal also stipulates the need for issuers to have a minimum share capital of HK$25 million or 1% of the value of stablecoin in circulation.  The HKMA foresees crypto exchanges, securities firms and regulated banks having the ability to offer stablecoins to customers, so such offerings won’t be confined to dedicated stablecoin issuers.Back in March the HKMA introduced a stablecoin sandbox with a view towards learning what works best from a regulatory standpoint. It’s understood that a list of participants will be announced in the near future. Participating entities will be able to issue stablecoins in Hong Kong within that controlled sandbox environment, prior to full scale implementation once stablecoin regulation has been fully legislated for.

Japan’s ODX to commence digital securities trading in DecemberOsaka Digital Exchange (ODX) is set to commence security token trading with Ichigo’s real estate assets, marking yet another milestone in Japan’s evolving digital asset landscape.Photo by note thanun on UnsplashDecember 25 ‘START’ODX’s Proprietary Trading System (PTS), named “START,” is scheduled to commence operations on Dec. 25, as announced in a Nov. 20 statement. This development follows the approval from Japan’s Financial Service Agency (FSA) on Nov. 16 for ODX’s securities token proprietary trading system.A security token, essentially a digitized version of traditional securities, represents fractional ownership in real-world assets like equity, real estate, or company shares. ODX’s trading system aims to enhance liquidity and funding opportunities for securities token operations within the region, aligning with its broader vision of establishing a digital stock exchange to rival the Tokyo Stock Exchange.Established in 2021 by SBI Holdings and Sumitomo Mitsui Financial Group (SMFG), ODX is poised to welcome Ichigo as its inaugural client on the START platform. Ichigo is a Japanese sustainable infrastructure firm based in Tokyo. Real estate is one of the sectors it is involved in, where it specializes in the renovation and improvement of existing buildings.Third security token launchThe real estate company has previously issued two security tokens and now plans to issue a new token, facilitating real estate investment opportunities for individuals. A company statement reveals that the new security token will invest in six strategically located rental residential properties with superior access to the city center. Bloomberg reported on Monday that Ichigo intends to sell approximately $20 million worth of securities backed by property investments, with trading set to commence on Dec. 25.The release of real estate-backed security assets will take place on Progmat, a Japan-regulated digital asset platform established in 2022 by Mitsubishi UFJ Financial Group (MUFG) in collaboration with other Japanese banks. Progmat integrates blockchain technology with financial expertise to manage digital assets within the regulatory framework of Japan.As a consequence, MUFG will effectively be acting as custodian and security token issuer as part of this security token offering. SBI Securities will act as the lead underwriter of the project.Security tokens, subject to federal regulations, derive their value from external tradable assets and represent ownership in an enterprise or asset. The introduction of security token trading on ODX has the potential to enhance liquidity and streamline the investment process for individuals. However, with the initial offering of $20 million in securities, it is evident that Japan is cautiously exploring the demand for alternative forms of securities.SBI portfolio companyInitially, Japanese financial services conglomerate SBI Holdings had a 70% stake in ODX, with SMFG holding a 20% equity stake. Investment Bank Daiwa Securities and global financial services group Nomura made up the balance, with each having a 5% equity holding in the business.Those equity stakes have most likely been diluted as in September ODX confirmed that it had accepted equity participation from the Chicago Board Options Exchange (CBOE), the largest U.S. options exchange platform, private equity firm Virtu Investments and proprietary trading firm and global market maker Optiver Principal Strategic Investments (PSI).