Asia Express – Cointelegraph Magazine

Japan, China and Hong Kong step up stablecoin push

Major Asian economies are accelerating their stablecoin initiatives, with notable moves from Japan and China over the past week.

Japan’s top financial regulator is reportedly preparing to approve the country’s first yen-pegged stablecoin within the year. The token, issued by fintech startup JPYC, will be backed by liquid assets such as government bonds. 

According to finance outlet Nikkei, JPYC is expected to register as a money-transfer business this month and aims to issue 1 trillion yen (about $6.81 billion) worth of stablecoins over the next three years.

Interest in stablecoins is rising globally, especially after US President Donald Trump signed the GENIUS Act on July 18, establishing a federal framework for dollar-denominated tokens. Even China — which has banned most crypto-related activities — is reportedly considering a yuan-backed stablecoin. Reuters reported on Wednesday that China’s State Council is set to review a roadmap that includes yuan-denominated stablecoins as part of its renminbi internationalization strategy. While reports indicate that Beijing has signaled openness toward offshore stablecoins, it continues to warn against the promotion of such products.

For now, the US dollar dominates the stablecoin market. Tether’s USDt and Circle’s USDC both rank among the top ten cryptocurrencies and have a combined market capitalization exceeding $234.5 billion, according to CoinGecko data.

The GENIUS Act is expected to reinforce this dominance by requiring issuers to maintain a 1:1 reserve ratio in highly liquid assets like US Treasuries or cash. Zhang Monan, deputy head of the Institute of American and European Studies at the China Center for International Economic Exchanges, argued in a commentary for Sina Finance that this framework further entrenches the global influence of the dollar and US Treasuries.

Zhang added that Hong Kong is a strategic player capable of challenging dollar hegemony. The city’s stablecoin regulations have already taken effect, and multiple firms, including Chinese tech giants, are preparing to issue compliant tokens.

“Although in the short term the launch of compliant offshore renminbi stablecoins in Hong Kong faces bottlenecks, Hong Kong’s stablecoin policy framework has reserved space for this. In the future, if a stablecoin pegged to offshore renminbi can be launched, it will open up an entirely new path for renminbi internationalization,” a machine translation of Zhang’s commentary reads.

India’s long-awaited crypto tax reform enters talks

India’s tax authority is reconsidering the country’s crypto tax policy and has begun asking industry players whether the current regime is driving businesses offshore, the Economic Times reported.

India imposes one of the world’s harshest crypto tax regimes: a flat 30% levy on capital gains and a 1% tax deducted at source (TDS) on all transactions. Authorities have long taken a hostile stance toward the sector. In 2018, the Reserve Bank of India (RBI) barred banks from serving crypto firms, a move struck down by the Supreme Court in 2020.

In mid-2022, the government introduced the punitive tax framework. Within months, Indian exchanges reported a collapse in activity, with trading volumes plunging by 90%–95%.

Former RBI governor Shaktikanta Das was one of the most vocal opponents of crypto and resigned in December 2024, just as major economies softened their stances following Trump’s presidential election. Das’s successor has continued the hard line. Current governor Sanjay Malhotra has said there is “no change” in the central bank’s opposition to cryptocurrencies.

Philippines quashes crypto ban but disappoints stock traders

The Philippines did not ban cryptocurrency trading, the country’s Securities and Exchange Commission said.

The market regulator was pushed to isse a clarification after the new rules on crypto exchanges took effect. The nation has since cracked down on unregistered exchanges,flagging 10 in the process.

But that has raised confusion among local investors on whether cryptocurrency trading itself is permitted. 

“The [Crypto Asset Service…