Blockchain Experts Gather at KBW 2023 Side Event to Discuss Future Prospects of South Korea

Dubai-based crypto exchange Bybit said it will temporarily pause the onboarding of new users in Japan as it adjusts to regulatory changes under the country’s Financial Services Agency (FSA). In a statement released on Oct. 30, the company explained that the suspension is part of its effort to reassess compliance obligations and align with upcoming local standards. Starting Oct. 31 at 12:00 p.m. UTC, Bybit will no longer accept new account registrations from Japanese nationals or residents. The company added that the change will not affect existing customers, whose services will remain uninterrupted for now. The decision landed amid a shifting domestic policy backdrop. Policymakers at the FSA have been weighing the treatment of crypto assets under the Financial Instruments and Exchange Act, viewing digital tokens through the lens of investment products. Officials have pointed to sharp price volatility and cyber-theft risks as reasons to strengthen safeguards for depositors and insured individuals.Photo by Cosmin Georgian on UnsplashBanks and insurers face ban on crypto salesAccording to an Asahi Shimbun report cited by Yonhap News, the FSA is set to prepare a draft framework that would bar banks and insurance companies from selling crypto directly, while permitting sales through brokerage firms. The draft was said to be slated for submission to the regular Diet session next year. In order to preserve a level competitive field, the authority plans to allow securities arms of banks and insurers to distribute tokens, given that online brokerages already offer crypto exposure. The same report suggested that banks and insurers could be allowed to hold and manage crypto assets once adequate risk management systems were in place. Market developments have continued alongside the policy work. Reuters reported that a yen-pegged stablecoin called JPYC launched on Oct. 27, issued by a company of the same name and backed by domestic savings and Japanese government bonds. An earlier Nikkei article had signaled that regulatory approval was expected, leaving timing as the main open question until the debut. Economic stimulus at odds with rate hike talkBroader macroeconomic policy has also been in focus for crypto investors. Some analysts have argued that an economic stimulus package announced by Japan’s newly elected Prime Minister Sanae Takaichi could channel fresh capital into markets and, by extension, provide a tailwind for Bitcoin. On social media platform X, BitMEX co-founder Arthur Hayes suggested that additional government support for households and businesses might propel the largest cryptocurrency toward the $1 million mark. Monetary policy remains a counterweight. The Bank of Japan kept its benchmark rate at 0.5% on Oct. 30, which led to a weaker yen and boosted demand for government bonds. According to Reuters, Governor Kazuo Ueda indicated that wage trends would guide the next step, leaving open the possibility of a rate increase as early as December. Higher interest rates typically raise borrowing costs and can damp risk appetite, dynamics that often weigh on speculative assets such as cryptocurrencies. Investors are watching how Japan’s evolving rulebook, fiscal support, and cautious monetary tightening intersect—and how that mix ultimately shapes crypto participation and pricing in one of Asia’s most closely observed markets. 

The Monetary Authority of Singapore (MAS), the city-state’s central bank and primary financial regulator, has set a deadline of June 30 for unlicensed digital token service providers (DTSPs) working out of Singapore to cease offering their services to clients in overseas markets.Photo by Hu Chen on UnsplashResponding to feedbackThe deadline emerged by way of a process MAS has followed as part of the Financial Services and Markets Act 2022 (FSM Act). Last October, the regulator invited feedback from stakeholders related to the authority’s approach to the regulation of DTSPs. MAS published its response to that feedback on May 30.  It stated:”DTSPs which are subject to a licensing requirement under section 137 of the FSM Act must suspend or cease carrying on a business of providing DT services outside Singapore by 30 June 2025.” It added that it was not including any transitional arrangement for DTSPs despite MAS receiving such a suggestion from a number of feedback respondents. Instead, unlicensed DTSPs will need to abide by the June 30 deadline and have acquired a license by then or cease unlicensed activity.The regulator defines DTSPs as individuals, partnerships or Singapore corporations operating from a place of business in Singapore, including those formed or incorporated in Singapore who offer digital token services outside Singapore. Those found in breach of the regulation could face up to three years in prison and fines of up to S$250,000 ($195,000). Companies who have already obtained licensing or those exempted by way of the Securities and Futures Act, Payment Services Act and the Financial Advisers Act are free to continue trading. Challenging licensing requirementsThose who wish to become compliant will have to satisfy some challenging requirements. For those granted a license, an annual license fee of S$10,000 ($7,780) applies. Small-scale DTSPs need to satisfy a $150,000 ($116,670) ongoing capital requirement, while larger, well-established DTSPs must comply with a S$250,000 ($195,000) capital requirement. Additionally, MAS has put in place competency requirements related to a DTSP's CEO, directors, partners and managers. Hagen Rooke, a partner at law firm Gibson, Dunn & Crutcher, outlined on LinkedIn that while it's possible for unlicensed operators to obtain licensing, it will be very difficult to get a license. In its feedback response document, the regulator stated: “MAS will approach the licensing of DTSPs in a prudent and cautious manner and there will be extremely limited circumstances under which MAS will consider granting an applicant a licence under section 138 of the FSM Act.” Rooke advised crypto companies that may be affected to act swiftly in order to derisk through an operational restructuring or removing the businesses' Singapore touchpoints. He suggested that firms need to consider if it has customers outside of Singapore or front-office functions located outside of the city-state to determine if they could be affected by this regulatory measure. A number of Asian countries have moved to take action against unlicensed foreign firms that have engaged with local investors, with Thailand becoming the latest country to do so recently. However, the Singaporean authorities have approached the issue from the opposite perspective, citing the potential reputational risk that unlicensed DTSPs pose for Singapore.

The Monetary Authority of Singapore (MAS) has unveiled a new initiative aimed at enhancing the nation’s financial infrastructure through the use of stablecoins and tokenized commercial bank money. Announced on Oct. 16, the project, known as BLOOM, short for Borderless, Liquid, Open, Online, Multi-currency, brings together 16 financial sector participants, including Anchorage Digital, Ant International, Circle, Coinbase, and DBS Bank. According to MAS, BLOOM is open to additional participants through a registration form available on its official website.Photo by Jason Leung on UnsplashBuilding on Project OrchidBLOOM operates under Project Orchid, a digital Singapore dollar initiative launched in 2021 to explore potential applications of central bank digital currency (CBDC) in strengthening Singapore’s financial ecosystem. Through BLOOM, it will examine use cases involving G10 and Asian currencies, covering both domestic and cross-border payments, as well as wholesale financial transactions. The project’s focus includes coordinating interoperability between different networks to enable the distribution and clearing of settlement assets. It will also explore automated compliance checks and study methods to make wholesale settlements more efficient and cost-effective. Artificial intelligence (AI) agents are expected to play a supporting role, executing transactions automatically within predefined limits and regulatory parameters. Expanding stablecoin usage in SingaporeThe MAS initiative comes shortly after the listing of XSGD, a Singapore dollar–backed stablecoin, on the U.S.-based crypto exchange Coinbase on Oct. 1. XSGD is issued by StraitsX, a digital payments provider, and is fully backed by reserve assets held with DBS Bank and Standard Chartered. Stablecoin payments have gained traction in Singapore’s retail sector as well. StraitsX recently began supporting settlements in USDT and USDC through OKX Pay. Consumers can use SGQR codes at participating GrabPay merchants to make everyday purchases, such as coffee, with transactions settled directly in Singapore dollars into merchant accounts. Rising local interest in digital assetsSingapore’s growing engagement with digital assets reflects a broader trend of public interest. A report from ApeX Protocol, cited by Cointelegraph, ranked Singapore as the world’s most “crypto-obsessed” nation, awarding it a composite score of 100. The ranking considered ownership rates, adoption growth, search activity, and ATM availability. The study found that 24.4% of Singapore’s population holds cryptocurrency, ahead of the United Arab Emirates (UAE), which scored 99.7 despite a 25.3% ownership rate. In a separate development, Channel News Asia reported that three Singaporeans have been implicated in a large-scale fraud scheme linked to Cambodia’s Prince Group. The U.S. Department of Justice recently confiscated 127,271 Bitcoin tied to the operation—the largest seizure in its history. Following the investigation, the U.S. Department of the Treasury’s Office of Foreign Assets Control imposed sanctions on the three individuals as well as 17 Singapore-registered entities. The sanctions block access to any property in their possession and prohibit U.S. persons from engaging in transactions with them, citing risks to U.S. national security and foreign policy interests.