Vietnam is taking steps to regulate digital assets as the country faces rising crypto-related fraud. The proposed framework aims to reduce scams and provide legal clarity, addressing concerns about Vietnam’s “policy grey zones” that allow criminals to operate unchecked. According to Phan Đức Trung, the Vietnam Blockchain Association chairman, recent reports revealed a $100 million crypto fraud targeting local investors.
Despite Vietnam’s ambition to become a blockchain leader by 2030, the lack of regulation has created risks for investors. With 17 million Vietnamese citizens actively using crypto and capital inflows reaching $105 billion for 2023-2024, the country ranks among the world’s top crypto adopters. However, Trung warns that bad actors exploit loopholes by registering offshore without clear laws, making enforcement difficult.
Authorities have already cracked down on crypto scams, arresting multiple suspects in Hanoi and Dong Nai Province for defrauding victims through fake tokens and mining schemes. The new draft law, expected to pass in Q2 2025, aims to establish a legal framework for consumer protection, dispute resolution, and tackling illicit financial activities linked to crypto.
European central banks may start accumulating Bitcoin as early as 2025, according to blockchain expert Fiorenzo Manganiello. It follows the rollout of the EU’s Markets in Crypto-Assets (MiCA) regulation, which aims to stabilise the crypto market by introducing clear legal frameworks. Manganiello believes that MiCA’s clarity will encourage institutional investors and reduce Bitcoin’s volatility, positioning it as a legitimate financial asset.
He predicts that central banks could use Bitcoin as a hedge against traditional market instability, diversifying their reserves and strengthening their defences. Manganiello stated that Bitcoin is becoming “too dominant to ignore,” and even the most traditional financial institutions, including central banks, are expected to embrace it.
The MiCA framework, introduced at the end of 2024, will replace the fragmented national regulations that previously governed crypto across the EU. With MiCA offering a unified regulatory approach, Manganiello argues that it will breathe new life into the European crypto scene and potentially lead to Bitcoin becoming a standard asset for central banks.
Australian crypto firm Monochrome Group has successfully registered its Bitcoin and Ethereum exchange-traded funds (ETFs) with the Monetary Authority of Singapore, marking a significant expansion into Southeast Asia. This move comes in response to rising institutional demand for regulated digital asset products.
The Bitcoin ETF (IBTC) and Ethereum ETF (IETH) are now available to accredited and institutional investors, with a minimum transaction of S$200,000. These ETFs cater to diverse institutional needs, offering both Bitcoin and cash subscriptions and redemptions. Monochrome’s CEO, Jeff Yew, stressed that the firm is focused on building long-term infrastructure rather than short-term market fluctuations.
Monochrome’s expansion is also backed by a strategic partnership with Anadara Capital and an enhanced security infrastructure through BitGo Trust Company for custody services. The firm plans to set up regional offices in Southeast Asia by 2025, with a strong focus on regulatory compliance and institutional engagements.
As the demand for regulated crypto products grows amid global market turbulence, Monochrome’s ETFs offer a compliant solution for institutions looking to hedge against geopolitical and economic instability, positioning the firm at the forefront of Asia’s crypto regulatory hub.
The cryptocurrency market experienced a significant downturn on 1 February, following the announcement of new tariffs imposed by the US. President Donald Trump’s decision to apply 25% tariffs on goods from Canada and Mexico and 10% on Chinese imports led to a market-wide sell-off. Bitcoin’s price dropped by over 5%, reaching a low of around $91,200, before rebounding slightly to about $94,000. Despite the recovery, Bitcoin remains approximately 13% below its all-time high of $109,000.
This price drop has had a ripple effect on the wider crypto market. In the past 24 hours, Ethereum saw a sharp decline of nearly 20%, while other major altcoins such as Ripple, Solana, and Binance Coin also took significant hits, with losses reaching as high as 22%. Trading volume surged by over 200%, indicating heightened selling pressure, which often signals market panic.
Bitcoin’s recent crash follows a period of positive price movement after President Trump’s inauguration, but the new tariff policies have shaken investor confidence. With the overall global crypto market cap dropping by almost 12%, concerns are mounting that long-term investors are capitulating, selling at a loss or lower profits. Market experts, including BitMEX CEO Arthur Hayes, have warned that the risk of a financial crisis could be looming, adding to the uncertainty in the markets.
India is reassessing its position on cryptocurrencies as other countries adopt more favourable policies. The review comes after US President Donald Trump’s recent moves to overhaul digital asset regulations, prompting Indian authorities to revisit their own discussion paper, initially scheduled for release in September 2024. Economic Affairs Secretary Ajay Seth highlighted the need for a broader perspective, given that cryptocurrencies transcend national borders.
Government scrutiny of digital assets remains strong despite increasing local investment in the sector. India’s Financial Intelligence Unit issued compliance notices to offshore exchanges in late 2023, leading to Binance paying a fine of 188.2 million rupees in June 2024. The regulatory approach has been strict, with high trading taxes discouraging domestic participation.
Differing views persist within Indian authorities regarding digital currencies. While market regulators have suggested a multi-agency framework for oversight, the central bank continues to express concerns about potential economic risks posed by private virtual assets. The ongoing policy review suggests that any regulatory adjustments will take global trends into account.
Thailand’s Securities and Exchange Commission (SEC) is launching a blockchain-based trading platform to enable securities companies to trade digital tokens. The move aims to enhance efficiency in the capital market and provide investors with broader access to tokenised securities.
According to the SEC, new regulations will facilitate the issuance and trading of electronic securities, including tokenised bonds and investment-focused digital assets. Four token projects have already been approved, with two more under review, particularly in green finance and investment-based initiatives.
The system will fully digitalise bond trading, covering settlement, investor registration, and payments. While specific blockchain networks were not disclosed, the SEC confirmed that interoperability standards will connect multiple chains in the future.
Thailand’s crypto landscape is shifting towards institutional markets, despite restrictions on crypto payments. The government is also exploring a stablecoin backed by government bonds, reflecting a cautious but progressive approach to digital assets.
Kraken has announced it will stop supporting Tether’s USDT and several other stablecoins for European clients by 31 March. The move follows updated guidance from EU regulators under the Markets in Crypto Assets Regulation framework. The exchange confirmed that affected assets include USDT, Tether’s euro stablecoin, PayPal’s PYUSD, UST, and TUSD.
Kraken is the third major exchange to delist Tether in Europe, following similar decisions by Coinbase and Crypto.com. While the wave of delistings continues, Tether remains financially strong, reporting a record $13 billion in net profits in 2024. The company’s large holdings in US Treasury bonds have further reinforced its stability.
Despite the European crackdown, Tether is expanding elsewhere. El Salvador, known for its pro-Bitcoin stance, has welcomed Tether’s establishment of its new headquarters in Central America. As regulatory pressure mounts in the EU, Tether’s focus on other markets may help offset potential losses.
India is re-evaluating its cryptocurrency stance as global attitudes towards digital assets shift. Economic Affairs Secretary Ajay Seth stated that the government is reviewing its discussion paper on cryptocurrency, originally set for release in September 2024, to reflect changing international regulations. The move follows recent policy adjustments in multiple jurisdictions, prompting India to reassess its approach.
Despite strict regulations, including a 30% capital gains tax and a 1% transaction levy, crypto adoption in India continues to grow. Authorities maintain strong regulatory control, with the Financial Intelligence Unit taking action against non-compliant exchanges. Meanwhile, the Reserve Bank of India remains cautious, while market regulators propose a multi-agency approach to oversight, signalling a possible shift in policy.
India’s complex relationship with cryptocurrency dates back to 2013, when the RBI first issued warnings. In 2018, a banking ban crippled the industry, only to be overturned by the Supreme Court in 2020. While the government supports blockchain and central bank digital currencies, the fate of private cryptocurrencies remains uncertain. As global regulations evolve, India’s next steps could have far-reaching consequences for the crypto sector.
The digital asset market continues to grow, with a shift towards softer regulation following increased mainstream adoption. Key developments include the UK’s pilot programme for digital gilts and a surge in exchange-traded funds launched by global asset managers. As the momentum builds, there’s a growing demand for a more complex financial ecosystem to support the evolving use cases of digital assets, driving opportunities for jurisdictions that can meet these needs.
However, as with any fast-growing industry, risk mitigation remains crucial. International financial centres are responding with a cautious, risk-based approach, while global cooperation is vital to prevent bad actors and protect reputations. Examples include the British Virgin Islands (BVI), which has created a strong regulatory framework for digital assets, attracting numerous businesses and regulatory innovation.
Global collaboration has also been crucial, with initiatives like the Financial Action Task Force’s standards on virtual asset service providers (VASPs) aimed at combating money laundering and terrorist financing. This is complemented by efforts from Europe’s MiCA regulation, which sets a strong precedent for other regions, including the Caribbean, to follow.
As technological advancements continue to enhance compliance and financial crime prevention, ongoing education and cross-jurisdictional collaboration will be key in ensuring the region maintains its position as a secure and attractive hub for digital asset businesses. The Caribbean, in particular, stands to benefit from embracing these innovations, provided it upholds high standards of financial integrity and transparency.
El Salvador’s Legislative Assembly has amended its Bitcoin Law, making it optional for businesses to accept Bitcoin as payment. The change comes as part of the conditions set by the International Monetary Fund (IMF) for a $1.4 billion loan aimed at strengthening the country’s economy.
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender alongside the US dollar. However, the mandatory Bitcoin acceptance for businesses faced criticism due to the cryptocurrency’s volatility and the population’s limited understanding of digital currencies.
The recent reforms allow businesses to choose whether to accept Bitcoin, and the government will no longer accept Bitcoin for tax payments. This move aims to address concerns raised by the IMF about the potential risks to financial stability and consumer protection while still maintaining Bitcoin’s legal status in the country.
In response to these concerns, the government also plans to scale back its involvement in Bitcoin-related initiatives, including reducing the use of the Chivo Wallet app.
