Crypto regulation in the world weekly digest #155

China

This week, a significant governmental meeting was held in Shanghai, China, focusing on strategic responses to stablecoins and digital currencies. This event marks a notable shift in tone for China, which has maintained a strict ban on cryptocurrency trading and mining since 2021 and extended the ban to all crypto activities, including private ownership, effective June 1, 2025.

The meeting was convened by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC) and included 60–70 local government officials and policy specialists. During the meeting following questions were discussed:

• Consideration of strategic policy responses to stablecoins and digital currencies.

• Discussion on the need for “greater sensitivity to emerging technologies” and enhanced research into digital currencies.

• Analysis of the evolution, types, and regulatory approaches to stablecoins globally.

• Policy recommendations for the advancement of digital currencies in China.

Major Chinese companies, including JD.com and Ant Group, have been urging the central bank to authorize yuan-based stablecoins to counter the growing influence of U.S. dollar-linked cryptocurrencies. These firms are preparing to apply for stablecoin licenses in Hong Kong, where new legislation on stablecoins is set to take effect on August 1, 2025.

The meeting signals a potential softening of China’s stance toward digital currencies, at least in terms of research and policy exploration, despite the ongoing comprehensive ban on crypto activities.

Right now, Hong Kong is moving forward with its own stablecoin licensing regime, which may serve as a testing ground for digital asset regulation in the region. This has prompted increased interest from mainland Chinese firms in yuan-pegged stablecoins, even as mainland China maintains strict controls. While China itself continues to enforce one of the world’s strictest bans on cryptocurrencies, the recent Shanghai meeting highlights a growing interest in understanding and potentially regulating stablecoins and digital assets. This could signal a gradual shift toward a more nuanced approach, particularly as Hong Kong’s regulatory framework for stablecoins comes into effect and major Chinese firms push for yuan-based digital assets.

South Korea

South Korea’s Ministry of SMEs and Startups has announced plans to lift restrictions on crypto-related businesses, allowing them to qualify as venture companies. This marks a significant shift in the regulatory stance toward the digital asset industry in the country.

By present, crypto firms have been excluded from the government’s venture company classification, preventing them from accessing tax breaks, funding, and other regulatory benefits. The new policy will remove crypto businesses from the list of restricted industries, making them eligible for:

• Venture company status;

• Government-backed matching funds;

• Tax incentives;

• Loan guarantees and subsidies;

• Discounts on business services.

The government cited a «shift in perception» of the digital asset industry and the establishment of legal safeguards (such as the Virtual Asset User Protection Act) as reasons for the change. Officials believe that restricting the industry is now inappropriate given the new legal and institutional frameworks to protect users.

The goal is to revitalize the venture ecosystem and support the growth of the virtual asset sector. Crypto firms will gain official recognition and legitimacy as venture companies and they will be able to access government support previously unavailable to them. Current venture companies can move into crypto without losing their status.

South Korea is set to remove long-standing barriers for crypto firms, granting them access to the same benefits as other venture businesses. This policy shift is expected to accelerate the growth of the country’s digital asset industry and position South Korea as a leader in global crypto innovation.

UAE

Authorities in the United Arab Emirates have formally denied claims that investors in the cryptocurrency Toncoin (TON) are eligible for the country’s prestigious Golden Visa program. This clarification came after widespread reports and social media posts suggested that staking $100,000 worth of TON for three years, along with a $35,000 processing fee, would grant applicants a 10-year UAE residency visa.

Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), Securities and Commodities Authority (SCA) and Virtual Assets Regulatory Authority (VARA) have issued a joint statement emphasizing that Golden Visas are issued according to officially approved frameworks and criteria, which do not include digital currency investors. All investments in digital assets are governed by separate regulations and have no bearing on visa eligibility. It was also stated that TON is not licensed or regulated by UAE authorities; any offers or initiatives related to TON and residency are not government-backed.

After that, the TON Foundation itself has also clarified that there was no official partnership with the UAE government for a Golden Visa program involving TON. The initiative was an independent, early-stage exploration with a licensed partner, not a government-led or endorsed program.

The initial announcement led to a brief surge in Toncoin’s price, followed by a correction after the UAE’s regulatory clarification. The episode drew skepticism from industry leaders and prompted warnings about aggressive or misleading marketing tactics.

News from other countries:

• The U.S. Secret Service has quietly become one of the largest holders of Bitcoin and other cryptocurrencies through seizures accumulated over the past decade. The agency’s Global Investigative Operations Center has amassed nearly $400 million in digital assets, much of which is stored in a single cold wallet, making it one of the world’s largest crypto custodians.

• The National Bank of Kazakhstan is planning to establish a state-managed crypto reserve, which would hold digital assets acquired through confiscations and state-affiliated mining operations. This reserve is intended to be managed by a specialized Bank’s subsidiary focused on alternative investments, ensuring institutional oversight and risk management.

We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!