Asia’s Crypto Weekly: Bank Rules, Tokenization

 Key Insights:

• Regulators revisit crypto banking rules as stablecoins prompt fresh review of capital requirements.
• Malaysia and Hong Kong move ahead with asset tokenization and crypto trade monitoring systems.
• Thai police arrest suspect in $14M crypto fraud as China advances major refund case.

Global regulators are considering changes to upcoming rules on how banks handle crypto assets. The Basel Committee is reviewing capital requirements set to take effect next year. These rules were first introduced in 2022 and have been viewed as discouraging for banks, due to the high capital they require for holding crypto.

The review comes as stablecoins draw increased attention. Any change to these requirements could affect how banks take part in the crypto and stablecoin markets moving forward.

Policy Moves Across Hong Kong, Malaysia, and Singapore

In Hong Kong, the Securities and Futures Commission is seeking bids for a system to monitor virtual asset trading. The aim is to detect irregular market activity. Bids close on November 7, with a vendor expected to be selected in the first half of 2026.

Bank Negara Malaysia has announced a three-year program to explore real-world asset tokenization. The central bank will work with industry groups and begin proof-of-concept testing in 2026. Expansion of the pilot is planned for 2027.

In Singapore, law enforcement has frozen more than 800 million yuan in assets connected to Chen Zhi, linked to a transnational telecom fraud network. The seizure included cash, property, and investment accounts. “Authorities have identified Chen Zhi as a key figure in the operation,” said one source.

Exchange Activity and Stablecoin Developments

Bybit has paused new user registrations in Japan, citing compliance with local rules. Existing users remain unaffected for now. Past cases suggest further restrictions could follow.

In Japan, JPYC Inc. has launched a yen-pegged stablecoin and its related platform, JPYC EX. The coin is fully backed by deposits and government bonds and will operate on Ethereum, Avalanche, and Polygon.

Crime and Legal Proceedings Continue

Thai police have arrested Liang Ai-Bing, a Chinese national involved in the FINTOCH crypto scheme. The case is tied to over $14 million. Authorities also found weapons during the arrest. Investigators noted, “The platform used fake identities and promised high returns.”

In China, people affected by the Lantian Gerui fraud case must verify their claims by December 29. The case involves more than 43 billion yuan and nearly 130,000 victims across the country.