Asian countries are making efforts to establish regulatory frameworks for Stablecoins in line with the moves by the Trump administration in the US with regard to digital assets. The US House of Representatives recently passed the Genius Act, aimed at creating a clear regulatory framework for Stablecoins. By allowing federal and state authorities to regulate crypto issuers, the proposal aims to strike a balance between innovation and safeguards.
Now, South Korea, Hong Kong, Malaysia, Thailand, and the Philippines are witnessing increased momentum around Stablecoins tied to their respective currencies. Regional companies like JD.com and Ant Group are reportedly preparing to become cryptocurrency issuers. Even in China, where crypto trading remains banned, interest is rising in yuan-linked tokens. This renewed push comes in response to the US passing legislation backing dollar-denominated Stablecoins.
According to Bloomberg, the market for dollar-linked Stablecoins now exceeds $256 billion, far outpacing any alternatives, such as euro-backed tokens. Asian regulators are now worried that such dominance could lead to capital outflows and reduce control over domestic monetary systems, the report said.
Apparently, in South Korea, crypto exchanges recorded $41 billion in trading volume involving USDT and USDC during the first quarter of 2025, according to data from the Bank of Korea. The ruling party has proposed a bill that would allow local firms to issue won-based stablecoins. But the central bank has expressed caution citing risks to capital controls and financial stability.
Hong Kong is also becoming the hub for Stablecoin development, emphasising practical application like international yuan transfers. State-backed firms in China are reportedly exploring yuan-pegged Stablecoins via Hong Kong entities.
Incidentally, in India, there is no formal regulatory framework for Stablecoins. Cryptocurrency is not banned, but the lack of clear guidelines has led to regulatory ambiguity. The Reserve Bank of India (RBI) has also expressed concern about potential dangers to financial stability, and the industry continues to await official guidance even as global developments unfold.
