KEY TAKEAWAYS
- Asian governments are reshaping digital asset regulations to integrate them into mainstream finance.
- The IOTA Foundation supports privacy-preserving compliance and risk-based regulation for digital assets.
- Hong Kong, Thailand, Malaysia, and South Korea are leading regulatory changes, with IOTA advocating for balanced approaches.
- IOTA emphasizes innovation-friendly regulation that aligns with global standards and ensures risk-proportionate oversight.
Across Asia, governments are redefining the regulatory landscape for digital assets, aiming to integrate them into mainstream finance with a balanced approach. The IOTA Foundation has expressed support for these developments, advocating for privacy-preserving compliance and risk-based regulation to foster trusted and growth-oriented digital asset markets.
Regulatory Developments in Hong Kong, Thailand, Malaysia, and South Korea
In Hong Kong, the Monetary Authority issued a consultation paper in June 2025 detailing Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) requirements for fiat-referenced stablecoins. This follows the Stablecoin Issuers Ordinance, which mandates licensing for such stablecoins starting August 2025. The IOTA Foundation acknowledged Hong Kong’s leadership but cautioned against applying full Travel Rule obligations to self-hosted wallets, proposing a risk-mitigation framework using tokenized KYC-proof models instead.
Thailand’s Securities and Exchange Commission (SEC) proposed lifting the ban on Conflict-of-Interest (COI) tokens in July 2025. These tokens, issued by exchanges for use within their ecosystems, would be allowed under strict disclosure and monitoring requirements. The IOTA Foundation welcomed this move, emphasizing that prohibiting COI tokens limits user choice and places domestic exchanges at a competitive disadvantage.
In Malaysia, the Securities Commission proposed reforms to the Guidelines on Recognised Markets in August 2025, introducing a Liberalised Listing Framework for Digital Asset Exchanges. The IOTA Foundation supported the push for a more autonomous exchange regime but opposed blanket restrictions on utility and nascent tokens, advocating for enhanced disclosure and independent audits instead.
South Korea’s government proposed amending the Enforcement Decree of the Special Act on the Promotion of Venture Businesses to include virtual-asset firms as recognized venture enterprises. The IOTA Foundation endorsed this proposal, noting that it aligns with Korea’s broader technology agenda and encourages responsible entrepreneurship.
IOTA Foundation’s Guiding Principles
The IOTA Foundation’s recommendations across these engagements share a consistent foundation: balancing strong safeguards with innovation-friendly regulation, aligning with global standards, and ensuring risk-proportionate oversight. The Foundation continues to support open, interoperable, and privacy-preserving solutions that connect innovation with compliance, helping build trustworthy digital asset markets.
For more details, visit the full article here.
Why This Matters: Impact, Industry Trends & Expert Insights
Asia is actively redefining its digital asset regulatory landscape, with the IOTA Foundation supporting these progressive changes. Recent regulatory developments in Hong Kong, Thailand, Malaysia, and South Korea are shaping a more integrated approach to digital asset regulation.
According to a recent report, Asia’s regulatory landscape is increasingly focused on stablecoin frameworks and consumer protection. This aligns with Hong Kong’s implementation of the Stablecoins Ordinance and its emphasis on robust AML/CFT requirements. The IOTA Foundation’s support for these regulations highlights the region’s commitment to fostering a balanced digital asset market.
A report by AInvest highlights that the IOTA Foundation is actively engaging with Asian regulatory bodies to advocate for innovation-friendly policies. This supports the Foundation’s broader strategy of promoting blockchain adoption and digital asset regulation in Asia, reinforcing the significance of these regulatory developments.
Explore More News:
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
