A Look At The Legal Status Of Crypto In Asia
Asia is where new crypto hubs are emerging and thriving despite uneven regulation.
China is home to a tremendous number of cryptocurrency projects and exchanges, and yet, crypto has actually been banned for several years now. Firstly, the nation’s central bank, banned initial coin offerings and cryptocurrency exchanges, then the Shanghai branch of People’s Bank of China (PBoC) considered rooting out the crypto market in the country. Therefore, in 2019, a Chinese court ruled out that Bitcoin was digital property. Furthermore, the PBoC has said it’s prioritizing the launch of a central bank digital currency.
The city-state of Singapore treats cryptocurrencies positively and doesn’t ignore them, and its financial regulators were among the first in 2020 to issue relevant laws within the framework under which the country’s crypto businesses operate. In January, the Monetary Authority of Singapore, the nation’s central bank, issued the Payment Services Act, regulating the circulation of cryptocurrencies and the activities of related companies, which must comply with Anti-Money Laundering and Combating the Financing of Terrorism rules. At the moment, Singapore has clear legislation regarding cryptocurrencies, and no law prohibits their possession, use or exchange for fiat currency.
South Korea also has a clean-cut vision of cryptocurrencies; however, it approaches the regulation of digital assets in a very touch manner, viewing digital assets as legal tender. Its local exchanges are tightly controlled by government agencies, including the Financial Services Commission. In addition, the country’s Ministry of Economy and Finance can conduct comprehensive checks of Bitcoin exchanges. As for the use of blockchain in private business, the government contributes to the development of this sector in several ways, including through the use of a blockchain-based payment program in the city of Seongam and crypto storage by four of the nation’s largest banks.