Asian Nations Tighten Cryptocurrency Regulations

The Bank of South Korea (BoK) has established a new division to monitor the cryptocurrency market, Indonesia has announced increased taxes on crypto transactions, and Hong Kong has completed the development of stablecoin regulations. ForkLog has compiled the latest news from Asia in one article.

Digital Division of the Bank of Korea

The BoK has opened a new division focused on monitoring the cryptocurrency market, as reported by local publication News1.

The regulator has also renamed the Digital Currency Research Group to the Digital Currency Group.

The department will concentrate on stablecoins pegged to the Korean won (KRW) to prevent capital outflow and reduce reliance on “stablecoins” like USDT and USDC.

Interest in these assets in South Korea has increased following statements by newly elected President Lee Jae-myung, who promised to promote KRW stablecoins. Ruling party lawmaker Min Byung-doo introduced a bill establishing a regulatory framework for this class of assets.

In response, South Korean banks and payment systems have begun actively submitting applications for stablecoin ticker registrations.

Crypto Taxes in Indonesia

According to Reuters, new tax rules for the crypto market will take effect in Indonesia on August 1. The rate for sellers on local exchanges will increase from 0.1% to 0.21%, and for operations on foreign platforms, from 0.2% to 1%.

Meanwhile, buyers will no longer pay VAT, which previously ranged from 0.11% to 0.22%.

The tax on bitcoin mining will rise from 1.1% to 2.2%, and the special income tax of 0.1% will be abolished from 2026. All income from cryptocurrency mining will be subject to standard rates for individuals or legal entities.

Stablecoins in Hong Kong

On July 29, the Hong Kong Monetary Authority (HKMA) published the final rules for regulating the “stablecoin” market. The law will come into effect on August 1.

To issue fiat stablecoins within and outside the special administrative region of China, issuers will need to obtain a license. HKMA has already launched a public registry.

The regulator will start accepting registration applications from September 1. According to HKMA head Eddie Yue, most applicants do not meet the requirements.

Back in May, UBS experts noted a growing interest among major Asian clients in bitcoin and gold.