Asian countries will tighten cryptocurrency regulation

The Bank of South Korea (BoK) has created a new division to monitor the cryptocurrency market, Indonesia has announced an increase in taxes on crypto operations, and Hong Kong has completed the development of regulations for stablecoins. ForkLog has compiled the latest news from Asia in one material.

Digital Division of the Bank of Korea

BoK has opened a new division that will focus on monitoring the cryptocurrency market. This was reported by the local publication News1.

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

The department will focus on stablecoins pegged to the Korean won (KRW) to prevent capital outflow and reduce dependence on "stable coins" like USDT and USDC.

Interest in these assets in South Korea has increased against the backdrop of statements from the recently elected president Lee Jae-myung. He promised to promote KRW stablecoins. A lawmaker from the ruling party, Min Byung-dok, presented a bill that establishes a regulatory framework for this asset class.

In response, South Korean banks and payment systems began actively submitting applications for the registration of tickers for stablecoins.

Cryptoanalysts in Indonesia

According to Reuters, new tax rules for the cryptocurrency market will come into effect in Indonesia on August 1. The rate for sellers on local exchanges will increase from 0.1% to 0.21%, while for transactions on foreign platforms it will rise from 0.2% to 1%.

At the same time, buyers will no longer pay VAT, which previously amounted to 0.11-0.22%.

The tax on bitcoin mining will be increased from 2.2% to 1.1%, and the special income tax of 0.1% will be abolished starting 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 in the special administrative region of China and beyond, issuers will need to obtain a license. The HKMA has already launched a public registry.

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

Earlier, UBS noted an increase in interest from large clients in Asia towards Bitcoin and gold.