Japan's Financial Services Agency is reviewing a legal amendment to reclassify cryptocurrencies from payment tools to financial products as crypto accounts reached 13 million. The FSA working group convened its sixth session on November 26 to address consumer complaints averaging 350 monthly and rising fraud schemes. The proposed shift would transfer crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act, introducing stricter disclosure requirements and insider trading protections.

Hong Kong's monetary authority has received approximately 80 applications for stablecoin issuer licenses, with only a limited number expected to gain approval in early 2026. The jurisdiction has become the first to mandate that stablecoin reserves consist exclusively of High Quality Liquid Assets. The framework follows several digital asset scandals and establishes centralized oversight under the Hong Kong Monetary Authority.

South Korea's Financial Services Commission plans to submit a government-sponsored stablecoin bill by the end of 2025, competing with five proposals already under National Assembly review. The Bank of Korea released a stablecoin whitepaper on October 27 and is seeking a role in licensing and monitoring. Jurisdictional tensions have emerged as both institutions pursue oversight authority over the emerging market.

Cryptocurrency transfers from South Korea to Cambodia surged 1,400-fold in 2024, revealing critical weaknesses in the country's anti-money laundering framework, according to regulatory oversight data. Bithumb processed approximately 12.4 billion won ($9 million) in suspicious transactions, while Upbit handled 366 million won ($271,000). The funds were primarily sent in USDT stablecoins to Huione Guarantee, a Cambodian online marketplace sanctioned by the United States and United Kingdom.

Japan's 2023 Payment Services Act amendment restricts stablecoin issuance to banks and trust institutions, establishing a conservative regulatory regime. Experts warn the framework's exclusion of global stablecoins like USDC and its inward focus may constrain DeFi innovation compared to Hong Kong and Singapore's more open approaches.