China warns foreign spies about crypto, Singapore dominates Asia: Asia Express

China’s Ministry of State Security has escalated its rhetoric on the security risks posed by cryptocurrencies, publishing a social-media post that linked virtual assets to money laundering, cyberattacks and espionage. The MSS said overseas anti-China forces use crypto to disrupt financial order and recruit assets, and it warned that claims about the untraceability of virtual-currency transactions are misleading. The notice appeared framed as a direct warning to foreign intelligence operatives who might assume blockchain payments shield them from detection. The article noted that while widely used blockchains such as Bitcoin and Ethereum have limited privacy, protocols like Monero and Zcash can provide substantial anonymity if used correctly.

Across the region, Chainalysis data show Singapore’s crypto economy expanded sharply in the year ending June 2026, rising 55.4% to $284 billion and reclaiming the top spot in Central and Southeast Asia and Oceania. The firm said almost all of the increase was concentrated in institutional platform activity, which surged 94% to $60 billion and was dominated by a relatively small set of market makers, over-the-counter trading desks and institutional brokerages. Chainalysis characterized the growth as driven by very high-volume activity on existing platforms rather than by broad new market entrants.

South Korea is also reconsidering market structure for digital assets after a liquidity-driven price spike on a major exchange highlighted gaps in market efficiency. On Sept. 17, Upbit listed JPYC, a yen-backed stablecoin, and the token’s price climbed from 12 Korean won to a peak of 37.6 won within an hour, more than four times its expected market value; the surge was attributed to limited liquidity. The Financial Services Commission said it will review whether to introduce market-making rules to increase efficiency and stability. Under current law — the Virtual Asset User Protection Act — there is no exemption permitting market-making from market-manipulation provisions, effectively preventing market makers from operating today.

Other regional developments noted by the source include MoonPay launching a South Korean subsidiary to work with local banks on remittances and payments (pending approvals), Binance Pay enabling eligible overseas visitors to spend crypto at PayPay-supported merchants in Japan via the HIVEX interoperability framework, and Hong Kong regulators expanding cooperation on financial reporting and audits for licensed crypto firms with a new SFC–AFRC agreement. Separately, HSBC plans a phased rollout of a Hong Kong dollar stablecoin called RedCoin, starting with person-to-person and merchant payments.