Asia’s Stablecoin Divide: Regulatory Rifts and Institutional Moves
Asia's stablecoin landscape is fracturing along regulatory lines. Japan advances with a bank-led consortium while China tightens restrictions on Hong Kong's initiatives, exposing fundamental tensions between private innovation and state control.
"There's real enthusiasm for stablecoins' potential to upgrade legacy systems," says John Cho of Kaia DLT Foundation, noting accelerated regulatory efforts across the region. The debate crystallizes around a critical question: Should only licensed institutions manage stablecoin issuance, or WOULD such constraints stifle financial evolution?
Banking heavyweights push forward even as policymakers remain divided. One faction views institutional gatekeeping as necessary for stability, while another warns against innovation-stifling barriers. This regulatory standoff mirrors broader global struggles over cryptocurrency governance.
