Chinese Central Bank Official Emphasizes Need for Digital Yuan Retail Payments

Korean Financial Watchdog: Investor Protection Boosts Crypto MarketLee Bok-hyun, Governor of the South Korean Financial Supervisory Service (FSS), addressed the issue of investor protection measures in the cryptocurrency market during his speech at the fourth Blockchain Leaders’ Club in Seoul. According to a report by local news agency News1, Governor Lee emphasized that these measures would not hinder the market but instead establish a positive cycle by increasing market confidence and driving industry growth.Photo by Joshua Miranda on PexelsCrypto user protectionTo underscore the importance of safeguarding users in the crypto industry, Governor Lee referred to recent incidents such as the collapse of stablecoin Terra and the failures of Silvergate and Silicon Valley Bank. He highlighted how these examples demonstrate the need for protective measures as the influence of the crypto market extends beyond the financial sector and impacts the real economy.Governor Lee further emphasized the FSS’s commitment to maintaining ongoing communication with the crypto industry and adapting the regulatory system to accommodate the changing landscape. He stated that the FSS would assist the industry in establishing its own self-regulatory system, which includes monitoring suspicious transactions and transparent procedures for virtual asset listing. Additionally, the FSS plans to collaborate with industry insiders to prevent misunderstandings when formulating relevant rules and regulations.Governor Lee also touched on the Virtual Asset User Protection Bill, stating that he expects to see the final draft this summer as it is currently undergoing a legislative process in the National Assembly. He highlighted the government’s commitment to improving market order and minimizing investor losses before the law’s implementation. The government is taking a “same risks, same regulation” approach to prevent regulatory arbitrage and establish effective monitoring systems for virtual asset transactions and on-chain data.Unfamiliar but importantMeanwhile, Lee Yong-woo, a member of the opposition Democratic Party of Korea (DPK), echoed the importance of establishing and improving a regulatory framework for the cryptocurrency industry. He drew parallels between the current situation and the dot-com bubble era, emphasizing the significance of not disregarding the potential of the crypto market due to unfamiliarity.Communication channelLawmaker Lee expressed hope that the Blockchain Leaders’ Club would contribute to shaping a stable crypto market by providing opportunities to listen to the opinions of market participants, which can then be reflected in managing and revising laws and regulations.Today’s event, hosted by News1, saw the gathering of lawmakers, government officials, crypto industry leaders, and academics. Among the participants were People Power Party Lawmaker Yun Chang-hyun, the top executives of the five major Korean crypto exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax), and the CEO of blockchain gaming company Wemade.

Binance Explores Stablecoin Issuance on MUFG Progmat Coin PlatformMitsubishi UFJ Trust and Banking Corporation (MUTB), the trust arm of Japan’s largest bank, Mitsubishi UFJ Financial Group (MUFG), has announced a collaborative effort with Binance Japan to investigate the issuance of public blockchain stablecoins denominated in Japanese yen and other currencies.Photo by Aditya Anjagi on UnsplashProgmat blockchain platformAccording to a press release published on Tuesday, the development is centered around MUFG’s Progmat blockchain tokenization platform, which encompasses the Progmat Coin stablecoin platform. Notably, Progmat now counts among its stakeholders some of Japan’s major financial institutions, including the second and third largest banks, SMBC and Mizuho.The scope of this venture extends beyond the confines of Japanese users, potentially transforming Japan into Binance’s stablecoin issuance hub. The initiative has emerged against the backdrop of recent regulatory events in the United States, notably the New York State Department of Financial Services (NYDFS) instructing Paxos Trust to halt the issuance of the Binance USD (BUSD) stablecoin earlier this year. The timeline for the launch of Japanese Binance stablecoins is set for 2024, contingent upon Binance Japan obtaining an Electronic Settlement Methods Transaction Business Provider license.Japan has been making strides in its regulatory landscape to accommodate various types of stablecoins, including those issued by banks and trusts. Under this framework, stablecoins issued by trusts like Mitsubishi UFJ Trust enjoy some unique advantages, such as exemption from licensing requirements and the absence of Know Your Customer (KYC) protocols for stablecoin transfers. Furthermore, these stablecoins are backed by ring-fenced reserve assets, mirroring the approach taken by Paxos Trust.The underlying Progmat blockchain technology is rooted in the Corda enterprise blockchain. However, MUFG has been actively collaborating with DataChain and TOKI technology to facilitate stablecoin issuance on multiple public blockchains, allowing for cross-chain transfers. The initial plan encompasses blockchain platforms like Ethereum, followed by Cosmos, Polygon, Avalanche, and others. This development raises questions about the potential elevation of Binance’s BNB Chain in the broader blockchain ecosystem.Tatsuya Saito, Founder and CEO of Progmat, remarked on the collaboration, stating:“We believe that the new stablecoin from this collaboration will be a step forward in advancing the Web 3.0. Progmat is a neutral infrastructure that enables the issuance of various brands of stablecoins with the greatest flexibility of use and the least risk of de-pegging, it does not compete with players issuing their own stablecoins.”Saito also hinted at other stablecoin projects in the pipeline with Japanese financial institutions and partners, underscoring Binance’s dominant position in the cryptocurrency trading world.Expanding presence in JapanBinance Japan, which recently acquired an existing crypto exchange and rebranded it as Binance Japan, currently lists 34 tokens. In addressing the WebX conference in July, Binance Founder and CEO Changpeng Zhao (CZ) recognized the positive regulatory environment that exists in Japan relative to Web3.From Binance’s perspective, this latest collaboration represents a substantial win, especially after the loss of its own stablecoin. Binance has been promoting lesser-known stablecoins on its exchange by reducing transaction costs, a strategy with inherent risks. In contrast, the alliance with MUFG, a globally significant bank, adds credibility and a different level of assurance to stablecoins.

Japan is preparing to shift oversight of crypto assets from its payments rulebook to its main securities law, a move that would treat digital tokens more squarely as investment products rather than payment tools, according to a new report from the country’s financial regulator. In a working-group paper on crypto asset regulation released Dec. 10, the Financial Services Agency (FSA) said it plans to bring “crypto assets” under the Financial Instruments and Exchange Act (FIEA) instead of the Payment Services Act (PSA), as reported by local outlet CoinPost. The agency framed the change as an effort to strengthen investor protection as more households buy digital assets for investment purposes.Photo by Alessio Ferretti on UnsplashCrypto distinct from traditional securitiesThe regulatory perimeter itself would not expand. The FSA intends to keep using the PSA’s existing definition of “crypto assets,” while leaving non-fungible tokens (NFTs) and stablecoins outside the scope of the new framework. Under FIEA, crypto assets would be carved out as a distinct class separate from traditional securities, reflecting the fact that they generally do not confer legal claims such as dividends or interest payments. That distinction is already shaping how firms attempt to expand the economic utility of crypto assets. The move toward a clearer rulebook also arrives as market participants look for ways to construct return-generating mechanisms for assets that do not produce steady income on their own. Hong Kong–based Animoca Brands has partnered with Solv Protocol to provide Japanese institutions access to a Bitcoin-backed wrapper, according to Cointelegraph. The product is structured to generate returns in the 4% to 12% range for large holders, effectively layering yield on top of a token that otherwise provides no ongoing income. Rising retail demandThe regulator's report also details how deeply crypto has penetrated Japan’s retail market. As of October 2025, accounts at domestically registered crypto-asset exchanges had climbed past 13 million, with user deposits topping 5 trillion yen (about $32 billion). Roughly 70% of account holders fell into annual income brackets below 7 million yen (around $45,000), and more than 80% of individual accounts held less than 100,000 yen (about $640). The FSA said 86.6% of trading was driven by expectations of long-term price gains, indicating that most users view crypto primarily as an investment vehicle rather than a means of payment. Against that backdrop, the working group concluded that FIEA is a better fit than the PSA, which is geared toward payment services and anti-money-laundering (AML) controls. Shifting to the securities law would give regulators clearer authority to impose disclosure standards, govern conduct in the market, and levy penalties for unfair trading practices, the report said. The proposed framework would place heavier disclosure obligations on token issuances and initial exchange offerings (IEOs). Issuers or the listing exchanges would be required to provide key information to investors, and, in cases where an issuer does not have audited financial statements, offerings would be subject to investment limits. Crypto exchanges would face stronger due diligence requirements, tighter cybersecurity expectations, and broader insider-trading restrictions. Those rules would not only apply to employees at trading platforms but also to issuers and other insiders around listing events. Rules split for CEXs and DEXsCentralized exchanges (CEXs) would be supervised largely in line with securities firms. That would include requirements to maintain reserves or insurance to protect customer assets and expanded oversight of wallet-service providers connected to those platforms. Decentralized exchanges (DEXs), which have no central operator, would not be brought under the same regime. Instead, the FSA is proposing lighter, perimeter-based rules focused on disclosures by wallet providers and interface operators, coupled with efforts to warn users about the specific risks of trading on DEXs.  Industry participants, meanwhile, have raised concerns that licensed exchanges may face higher compliance costs in the near term as they adapt to the new regime.  Moving forward, the FSA is expected to refine the framework with an eye toward submitting a bill to the ordinary Diet session in the new year.