Asia Crypto Regulation Accelerates with New Units and Licenses

Regulatory developments in Asia's crypto sector have accelerated significantly over the past few months. One of the most notable updates comes from South Korea, where a dedicated crime-fighting unit for crypto offenses is being established as part of the Serious Crimes Investigation Agency. The agency will handle various categories of major cases, including corruption and cybercrime, with a specific division focusing on virtual-asset crimes.

The launch of this new unit demonstrates that regulators are treating crypto fraud as a mainstream financial crime enforcement issue rather than a niche problem. Additionally, the Korea Exchange is set to officially open its Novel Securities Market on November 16, which will cover fractional-investment and income-generating securities backed by non-traditional assets.

In Japan, Laser Digital has become the first new exchange-service provider to secure registration in four years, with plans to focus on delivering liquidity services for domestic Japanese virtual-asset service providers. The country's parliament passed revisions classifying crypto-assets as financial instruments under the Financial Instruments and Exchange Act, introducing insider-trading protections.

Pakistan's Virtual Assets Regulatory Authority has also launched its virtual-asset licensing regime, requiring existing service providers to submit no-objection-certificate applications by September 5 or cease operations. This deadline-driven approach puts pressure on smaller platforms that may not yet have the compliance infrastructure in place.