China’s Crypto Crackdown Intensifies as Asian Rivals Forge Ahead with Stablecoin Adoption
Beijing doubles down on digital asset restrictions while regional competitors embrace dollar-pegged tokens
The Great Wall of Regulation
Chinese authorities maintain their iron grip on cryptocurrency trading and mining—no signs of thawing despite global crypto winter showing early spring buds elsewhere. Meanwhile, Hong Kong's cautious experimentation with licensed exchanges creates curious contrasts within the same national framework.
Asia's Stablecoin Surge
Japan's FSA greenlights multiple yen-pegged stablecoins while Singapore positions itself as the region's digital asset hub. South Korean conglomerates quietly integrate stablecoin payment rails—because why wait for central bank digital currencies when private sector solutions already work?
Regulatory Arbitrage Playbook
Financial institutions across Asia leverage stablecoins for cross-border settlements, cutting transaction times from days to seconds. Traditional banking systems watch nervously as corporate treasuries increasingly bypass SWIFT networks—proving once again that innovation happens fastest where regulators dare not tread too heavily.
The compliance departments at traditional banks must be working overtime trying to explain why their 'cutting-edge' payment systems still take longer to move money than it takes to get a coffee delivered.
Regional Cap Outlook
The Governor’s remarks came the same day Japanese startup JPYC launched the world's first yen-backed stablecoin, also called JPYC, with the company aiming to issue $66 billion (10 trillion yen) worth of tokens over three years.
Last month, South Korea launched its first fully regulated won-backed stablecoin, KRW1, through digital custodian BDACS and Woori Bank on the Avalanche blockchain.
ついに、日本円建初のステーブルコインJPYCが！
JPYCの発行償還が開始されました。https://t.co/X3gLEVRFs7
【開発者向け】
コントラクトアドレスは契約前準備書面をご覧ください。https://t.co/hHpY0HIyCW
— 岡部典孝 JPYC代表取締役 (@noritaka_okabe) October 27, 2025
Bank of China's Hong Kong shares surged earlier last month on reports it plans to apply for a stablecoin license, while Standard Chartered has expressed interest.
Users on Myriad are optimistic about stablecoin growth, with the majority predicting the stablecoin market cap will surpass $360 billion before February. (Disclaimer: Myriad is a product of Decrypt's parent company, DASTAN.)
Policy Pivot?
Chinese firms are expanding into offshore stablecoin ventures with Jack Ma’s ANT Group applying for “ANTCOIN” trademark in Hong Kong, covering stablecoins, token issuance, and transfers, while JD.com plans to seek overseas licenses to use stablecoins for cross-border B2B payments before extending to consumers.
"The role of Chinese regulators in shaping global stablecoin regulation has developed against a backdrop of relative financial stability and the absence of sanction-related pressure," RAY Youssef, CEO of crypto app NoOnes, told Decrypt.
"China's stance on stablecoins, which in many ways mirrors that of the EU, could eventually shift in the opposite direction—similar to what happened in Russia, where stablecoins are now being used by the government and corporations for international payments and foreign trade,” he added.
"The restrictions being introduced will not weaken Hong Kong's position as a global financial hub," he said. "Beijing has always needed a free economic sandbox in the FORM of Hong Kong—and the mainland Chinese economy only benefits from that arrangement."
