China Cracks Down on Crypto Espionage as Singapore Surges
China's Ministry of State Security (MSS) has issued a stern warning about the risks of cryptocurrencies, labeling them as accomplices in espionage. According to the South China Morning Post, the MSS published an article on social media stating that cryptocurrencies are often used by 'overseas anti-China hostile forces' to disrupt financial order and harm national security.
The warning also highlights the misconception that cryptocurrency transactions are completely anonymous. The MSS claims that overseas intelligence agencies would try to recruit spies by telling them that virtual currencies are hard to verify, but China is watching the blockchain closely.
Meanwhile, Singapore's crypto activity has grown 55.4% to $284 billion in the year ended June 2026, making it the largest crypto economy in Central and Southeast Asia and Oceania (CSAO). Much of this growth came from institutional platform activity, which increased 94% to $60 billion.
In other news, South Korea's Financial Services Commission is considering a market-making system for digital assets after a stablecoin linked to the value of the Japanese yen traded for as much as four times its peg on a major South Korean crypto exchange. MoonPay has also launched a South Korean subsidiary to work with local financial institutions on remittances and payments.