China Warns Cryptos Facilitate Espionage as Singapore Sees Record Growth
China's Ministry of State Security 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 used for money laundering and cyberattacks, and serve as tools for 'overseas anti-China hostile forces' to disrupt financial order and harm national security.
The warning was also a coded message aimed at would-be foreign spies who mistakenly believe they can send or receive payments without the authorities knowing. The MSS stated that cryptocurrencies are not as anonymous as most people assume, and warned that 'overseas intelligence agencies would try to dispel the concerns of people they were trying to recruit as spies by claiming that the circulation of virtual currencies was hard to verify.'
Meanwhile, Singapore's crypto activity rose 55.4% to $284 billion in the year ended June 2026, bucking a regional contraction and regaining its position as the largest crypto economy in Central and Southeast Asia and Oceania (CSAO), according to Chainalysis.
In South Korea, the 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. The FSC said it will review the need to introduce systems such as market-making activities to increase the efficiency and stability of the digital asset landscape.