Indonesia mulls crypto tax policy review

The Chinese authorities are reportedly mulling over the possibility of approving the use of stablecoins pegged to and backed by the Chinese yuan. That’s according to a report published by Reuters on Aug. 20, with the publication citing “sources familiar with the matter.”Photo by Eric Prouzet on UnsplashInternationalization of the Chinese yuanChina’s State Council, its cabinet and primary administrative authority, has scheduled a review of yuan-backed stablecoins for later this month, a development that could potentially lead to their approval. The Chinese have been leaders in recent years in the development of a central bank digital currency (CBDC), the digital yuan. The digital yuan was further along in its development than any other CBDC globally, with the Chinese making concerted efforts to bring the digital currency into use at home, with an eye toward global use for international trade. While the U.S. dollar has enjoyed an extended period as the world’s reserve currency, the weaponization of the currency by the U.S., particularly through the application of sanctions, has led BRICS (Brazil, Russia, India, China and South Africa) nations to consider alternatives. One of Reuters sources asserted that the Chinese authorities are now homing in on the potential to internationalize the yuan via stablecoins. Setting the tone for stablecoin useMembers of the Chinese government leadership are expected to establish the tone for stablecoin use following their upcoming review, outlining the parameters within which the Chinese authorities will permit their use. Reacting to this development, Robin Brooks, a senior fellow at the Brookings Institution, asserted that China’s newfound interest in yuan-backed stablecoins is a sign of “how insecure China is in the global financial system.” Brooks added that the way to internationalize a sovereign currency is to promote the rule of law and property rights rather than pursue the use of stablecoins, which he described as “ridiculous.”  Growing global interestWhile the Brookings Institution is not directly backed by the U.S. government, the organization is nevertheless a Washington, D.C.-based think tank. Despite Brooks’ objection to the use of stablecoins, China is not the only nation to show interest in using them.Taking to X, Raphaël Bloch, co-founder of crypto media platform The Big Whale, pointed out that increasingly, nations around the world are embracing stablecoins due to the efficiency of global currency distribution that is possible via public blockchain networks.  Additionally, stablecoins offer an effective means of government debt financing, given that stablecoin reserves are backed by government bonds. In the U.S., President Donald Trump has ruled out the pursuit of a CBDC. Last month, the U.S. House of Representatives passed the Anti-CBDC Act to prohibit the development of a CBDC by the Federal Reserve. Instead, Trump has said that a stablecoin regulatory bill working its way through the legislative system will ensure global dominance for the U.S. in the crypto sector. In June a Deutsche Bank strategist claimed that the legislation would strengthen the U.S. dollar’s global dominance, with several American politicians having since expressed the same view.Earlier this week, Japan’s Financial Services Agency (FSA) signaled that it is likely to approve the issuance of a yen-pegged stablecoin. Meanwhile, the authorities in South Korea are working on a bill related to won-pegged stablecoins.

Cryptocurrency exchange Bybit has reinstated access to its mobile app for users in India via Apple’s App Store and Google Play, saying website access has been restored following regulatory steps taken earlier this year. The company said it registered with the Financial Intelligence Unit–India (FIU-IND) in January 2025 and re-enabled trading functions for eligible users on Feb. 25, with full app access announced on Sept. 8.Photo by appshunter.io on UnsplashPenalty and registration paved way for Bybit’s comebackThe return follows an enforcement action at the start of the year. On Jan. 31, FIU-IND imposed a penalty of 92.7 million Indian rupees (approximately $1.05 million) on Bybit for violations under India’s anti-money laundering law and said its website had been blocked under the Information Technology Act until compliance was achieved. The following month Bybit announced it had paid the penalty and completed its FIU registration. Bybit’s latest announcement comes against the backdrop of India’s cautious approach to sector-wide rules. A government document reviewed by Reuters indicates New Delhi is distancing itself from a comprehensive cryptocurrency law, citing the Reserve Bank of India’s view that regulation could confer “legitimacy” and elevate systemic risks, while an outright ban would not stop peer-to-peer or decentralized exchange activity. India does not have a comprehensive crypto law but applies a flat 30% tax on income from transfers of virtual digital assets (VDAs) and a 1% tax deducted at source (TDS) on consideration paid for VDA transfers under section 194S of the Income-tax Act. Platforms bet on India despite tighter oversightIt's worth noting that authorities had moved to bring offshore platforms within local oversight. FIU-IND issued show-cause notices to nine foreign exchanges (Bitfinex, Bittrex, Binance, Bitstamp, Gate.io, Huobi, Kraken, KuCoin and MEXC Global) in December 2023 and sought to block access to non-compliant services. App store removals of several offshore exchange apps occurred in January 2024 following the notices. Binance later registered with FIU-IND as a reporting entity after paying a fine of 188.2 million Indian rupees (about $2.14 million) for earlier violations, imposed in June 2024. KuCoin also registered, with a smaller penalty of $41,000. In March 2025, Coinbase joined the list by gaining clearance from the Indian financial regulator, announcing plans to launch offerings for retail customers in the country later this year, with other products to follow. Their rush to establish a foothold makes sense, as India topped the Chainalysis Global Crypto Adoption Index, underscoring the country’s widespread embrace of digital assets. Bybit’s re-entry follows a major security incident unrelated to India’s rules. In February, the exchange reported a theft of roughly $1.5 billion in Ethereum (ETH), which the U.S. Federal Bureau of Investigation later attributed to North Korean actors known as “TraderTraitor.” Shortly after the incident, Bybit CEO Ben Zhou said the exchange had replenished the gap in the ETH reserves. 

Ripple Collaborates with Hong Kong Regulator in RWA TokenizationIn a demonstration of an extended use case, Ripple, the real-time gross settlement system, currency exchange, and remittance network, has announced that it has been selected by the Hong Kong Monetary Authority (HKMA) to showcase a real world asset (RWA) tokenization solution.Photo by Redd F on UnsplashReal world asset (RWA) tokenizationIn a press release published on Thursday, the San Francisco-based firm outlined that the objective of its participation in the HKMAs inaugural e-HKD Pilot Program is to showcase a particular approach to real estate tokenization. In principle the e-HKD project is a central bank digital currency (CBDC) scheme.Ripple is one of sixteen firms that will participate in the program. Among the other participants are HSBC, one of the largest banking and financial services institutions in the world, British multinational bank Standard Chartered, and Bank of China (Hong Kong).For its part, Ripple will partner with Fubon Bank, a subsidiary of one of the largest financial holding companies in Taiwan. The e-HKD Pilot Program will feature a series of pilots conducted through several industry players with a view towards carrying out in-depth research into application, implementation, and design issues relative to the e-HKD.Real estate tokenization is a leading example of RWA tokenization, which overall is anticipated to become a multi-trillion dollar industry by the end of this decade. Its plan is to build the solution on a private and secure ledger, guided in principle by the same technology that the company has utilized for XRP, the native token of the Ripple ecosystem.Illiquid assetsThe company points out that people’s homes are usually one of their primary assets. Notwithstanding that, unlocking value in real estate can be problematic, having considerable friction. The idea is that this illiquid wealth can be unlocked through tokenization. It’s a concept that is seeing a lot of interest from competing projects. Start-ups like Securitize and Provenance Blockchain would be among a long list of start-up firms that see the potential in the tokenization of RWAs.In Asia, Japanese trading and investment firm Mitsui has gotten involved in the tokenization of real estate through its Alterna investment platform. Tokeny and CoFund offer other examples of innovators that are pioneering real estate tokenization.In its press release, Ripple outlined that it aims to use its technology in this particular instance to enable Hong Kong citizens to experience the faster and more efficient release of equity relative to real estate.James Wallis, Ripple’s VP of Central Bank Engagements & CBDCs, expanded on this idea further:“The Asia Pacific region has many forward-looking regulators such as the HKMA, who are looking to leverage the capabilities of blockchain and crypto technology. It’s a huge honor for Ripple to be one of the select few organizations participating in the HKMA’s e-HKD Pilot Programme. We now have the opportunity to demonstrate how real estate asset tokenization could be brought to the citizens of Hong Kong, and are confident that our fully integrated solution will be an industry-first use case demonstrating the power of leveraging a CBDC for real estate equity asset release.”