Terraform Labs co-founder Do Kwon sentenced to 15 years for ‘generational’ fraud

Vietnam has moved to take a positive approach to crypto assets by passing legislation to legalize them. Last week, the Southeast Asian nation’s National Assembly passed the Digital Technology Industry Law, which takes effect on Jan. 1, 2026, according to a report published in the official online newspaper of the Vietnamese government. Photo by Daniel Bernard on UnsplashCategorizing digital assetsThe law sets out two categories of digital assets, virtual assets and crypto assets. The legislation frames virtual assets as digital assets used for exchange or investments. Meanwhile, crypto assets are to be regarded as digital assets utilized to validate transactions and confirm ownership while relying on the use of encryption technology. Neither category includes securities or digital versions of fiat currencies such as central bank digital currencies (CBDCs) or other financial instruments. The legislation gives the Vietnamese government the authority to define and apply specific regulatory conditions when it comes to items such as anti-money laundering (AML) measures and the inclusion of international cybersecurity standards. It is hoped that the law will pave the way for the development of home-grown technological enterprises within Vietnam, while also promoting a nationwide digital transformation process. Regulatory clarityThe legislation is significant as it clearly sets out the legal status of digital assets in Vietnam after years of uncertainty and regulatory ambiguity. Singapore-based blockchain-focused Business Strategist, Anndy Lian, said that such legal clarity could result in Vietnam becoming a regional hub for the crypto sector.  Anh Tran, who belongs to Superteam Vietnam, a community for Solana builders in Vietnam, said that the development was huge for founders, developers and investors in the crypto space in Vietnam. He stated: “For a country who has always been at the forefront of crypto adoption, [Vietnam] is now a 'green-lighted zone' in principle, but we're still waiting at the red light for operational rules.” He refers to the fact that Vietnamese regulators still have until Jan. 1, 2026, to flesh out the details in terms of defining who can issue, trade, custody or manage crypto, and how AML, cybersecurity and taxation are handled. Vietnamese officials are likely to give strong consideration to AML measures relative to crypto given that the Southeast Asian nation has been on the grey list of the Financial Action Task Force since 2023. Countries who appear on the grey list are under considerably more scrutiny with regard to AML matters. While another community member claimed that anywhere crypto regulation has been implemented, actual usage has declined, Tran maintained that regulation is inevitable and that “crypto doesn’t need to be lawless to be free.” Last October, Vietnam set out its blockchain strategy, aspiring to the goal of achieving regional leadership in the sector by 2030. In March, the country’s Prime Minister, Pham Minh Chinh, requested that a legal framework for cryptocurrencies be established.  According to Chainalysis’ 2024 Global Crypto Adoption Index, Vietnam ranks fifth in the world.

News emanating from the Central Asian republics of Kyrgyzstan and Kazakhstan in recent days points to further rollout and development of cryptocurrency sector infrastructure. A press release published on March 26 outlined that Kyrgyzstan is working on various initiatives in order to copper-fasten its position as a regional crypto hub. Those efforts include the advancement of digital asset regulation, enabling the launch of licensed crypto platforms and ongoing trials of legal frameworks relative to crypto. Photo by Steve Johnson on UnsplashA7A5 stablecoinOne initiative that may aid in the development of the digital assets sector in Kyrgyzstan is the rollout of the A7A5 stablecoin. A7A5 is pegged to the Russian ruble, with the token having been issued by Kyrgyz company Old Vector. The product was first launched in February, with the intention for it to be used on the A7 cross-border payment platform of Russian state-owned bank Promsvyazbank. Garantex, a Russian crypto exchange which had been sanctioned by U.S. and European authorities and was recently shut down, announced on Feb. 19 the listing of the A7A5 stablecoin. The stablecoin’s backers claim that it was issued “in complete accordance with the new national legislation - under the control of regulatory authorities and directed to an officially registered, regulated broker.” The stablecoin is being promoted on the basis of an annual yield of up to 20%, which has been established due to its link to the refinancing rate of the central bank of the Russian Federation. Kazakhstan crypto bank proposalMeanwhile, lawmakers in Central Asian neighbor Kazakhstan have proposed the creation of a national crypto bank. According to The Times of Central Asia, an English-language daily newspaper, Azat Peruashev, leader of the Ak Zhol political party within Kazakhstan’s lower house of parliament, put forward the proposal, which would implicate the involvement of the National Bank of Kazakhstan and a number of the country’s commercial banks. Peruashev addressed the proposal to Kazakhstani Prime Minister Olzhas Bektenov. However, the Central Asian country may have some fundamental issues to address before a crypto bank can become a reality. Currently, Kazakhstan has yet to establish a legal framework for the use of digital assets.  Last year, the authorities shut down 36 cryptocurrency exchanges which were deemed to have been operating illegally. In total, 3,500 illegal crypto exchanges have been shut down in Kazakhstan. Leading American crypto exchange business Coinbase faced a setback in the Central Asian country in November 2023 when the government cut access to its website within the country. While these crypto businesses have struggled to operate in Kazakhstan, Binance Kazakhstan successfully obtained a trading license from the Astana Financial Services Authority (AFSA) in September of last year. Earlier this month, the company added options trading and futures copy trading to the platform. Blockchain industry pioneer Kyle Chasse took to X to report on this most recent development. He suggested that given that 90% of crypto activity in Kazakhstan is off the books, the authorities are interested in launching a crypto bank so as to bring it all under their control. 

China to outline clear directions for NFT & Web3 developmentEarlier this week, China’s Ministry of Science and Technology announced a decision to work towards releasing a comprehensive strategy document aimed at clarifying the future path for the development of NFTs and Web3.Photo by Christian Lue on UnsplashFurthering Web3 innovationIn a communication published online on Tuesday, the ministry outlined its plan to enhance collaboration between relevant departments, emphasizing the promotion of Web3 innovation, increased research deployment and the strengthening of talent within the industry. Despite the regulatory challenges in the crypto space, the ministry acknowledged the growing interest in NFTs among Chinese citizens.The strategy document, developed in collaboration with the Chinese Academy of Sciences and the China Association for Science and Technology, will address key issues such as inheritance, innovation, security and government responsibilities.Ban not suppressing interestDespite the country’s ban on cryptocurrencies, the ministry expressed a commitment to the development of the Web3 industry, particularly focusing on non-fungible tokens (NFTs). Earlier this year, a Wall Street Journal investigation found that leading global crypto exchange Binance was thriving in China.One gray area that Chinese citizens are exploiting relative to the ban is that of NFTs. Crypto trading and mining were banned a couple of years ago. However, NFTs remain legal with the result that there has been a surge in adoption of digital collectibles in China. That prompted China’s top procuratorial agency, the Supreme People’s Procuratorate of China, to issue a warning relative to a number of attributes and risks relative to NFTs in May.Web3-related initiativesSeveral Web3 initiatives have already been underway in China. The Ministry of Science and Technology, in conjunction with the Cyberspace Administration of China, has released important policy documents, including the “Guiding Opinions on Accelerating the Application of Blockchain Technology and Industrial Development” and the “Blockchain Information Service Management Regulations.”Additionally, collaborative efforts involving the Cyberspace Administration of China, the Propaganda Department of the Central Committee, the Supreme People’s Court and other departments have conducted blockchain pilot actions, specifically in areas such as energy, rule of law, copyright and trade finance.The metaverse is another Web3 segment that the Chinese seem to be targeting for growth. A report by POLITICO published last August found that Chinese authorities and state-owned companies appeared to be seeking to mold and develop the metaverse in line with Chinese values. Efforts are being made to effect further development in the regions also, with the city of Zhengzhou announcing in May a set of metaverse-related policy proposals.Looking ahead, China’s Web3 strategy aims to concentrate on key sectors such as government affairs and industry. The plan seeks to encourage the development of novel business models, including NFTs and decentralized applications (dApps), while also accelerating the innovative application of Web3 and the construction of a digital ecosystem.The ministry’s recent response to Wu Jiezhuang, a member of the CPPCC National Committee, the country’s political advisory body, indicated that the delay in releasing the strategy document is part of a meticulous approach to ensure the strategic framework aligns with the evolving nature of the industry.While the postponement may be met with some disappointment, the overall tone remains optimistic, pointing towards the likelihood that China is committed to fostering innovation within the Web3 sector.