Tokenization regulations in Asia are converging on a single principle
Across the Asia-Pacific region, September saw a flurry of regulations, deadlines, and tokenization releases, indicating the region's transition from a pilot phase to a regulatory framework.
9/21/20264 min read
Prioritize institutions, including existing brokerage firms.
The FSC's (Financial Supervisory Commission) roadmap outlines a deliberate approach to tokenization. The initial rollout focuses on private money market funds and private bonds for institutional investors, then expands to public offerings, and finally to on-chain payment infrastructure. The plan expands token issuance beyond the niche investment products that dominated previous South Korean trials, including standardized securities such as stocks, bonds, and funds.
The most important design choice is that existing brokerage firms will not need additional licenses to handle tokenized securities. This treats tokenization as a new format for an existing market, rather than a separate business requiring a separate legal relationship, which lowers the barrier to entry for existing entities and essentially gives them first-mover advantage.
The Korea Stock Exchange is building a parallel trading platform. The new stock market, which includes fractional investments and income-generating securities backed by non-traditional assets such as artwork, real estate, and music copyrights, is expected to open on November 16 after a six-week trial trading period from October 6 to November 13, with investors placing limit orders through regular brokerage accounts.
One detail that's easy to overlook: The first batch of securities on that market is expected to be issued and registered under the standard electronic securities framework. The exchange opened before the token law came into effect, so the first listed securities won't be blockchain tokens. The market structure emerged first, and the tokenization format will follow in February.
The bonds are tokenized and paid for with digital currency.
The Securities and Exchange Commission of India (SEBI) and the Reserve Bank of India (RBI) have launched a system described as Demat 2.0, tokenizing corporate bonds and settling them through wholesale digital rupees. REC, Larsen & Toubro, and IIFL Finance have raised a total of 1,025 crore rupees, equivalent to approximately US$107 million, through the initial offering.
India's move is noteworthy from an analytical standpoint because of what sets it apart. The country still lacks a comprehensive legal framework for cryptocurrency assets, a gap that persists even as India leads global cryptocurrency adoption indices. However, it is now issuing tokenized corporate debt within its existing securities custody system, with the cash portion being paid for in the central bank's digital currency.
This suggests that cryptography and cryptocurrency regulation are two separate policy directions. A country can list securities on a distributed ledger under the management of a securities regulator while leaving the handling of cryptocurrencies completely open.
Japan: Trust bank stablecoin shifts to government bonds.
SBI Shinsei Trust & Banking has shifted a portion of its reserves backing its JPYSC, the yen-denominated stablecoin, into short-term Japanese government bonds, beginning with an initial issuance of 1 billion yen. As of September 7th, the total supply of JPYSC had reached approximately 20.1 billion yen.
This reserve decision is significant because it shows that the trust bank stablecoin model in Japan is maturing from a cash-based pilot phase to a reserve structure similar to dollar-denominated stablecoin issuers, holding short-term government debt to earn returns on the underlying assets. The Japan Financial Services Agency, which established a dedicated department for cryptocurrency and stablecoin assets on August 7th, is now overseeing an instrument that is beginning to function like a conventional reserve-backed payment token.
Additionally, Laser Digital Japan, backed by Nomura, received the nation's first new cryptocurrency exchange license in four years, a sign that Japan's notoriously slow licensing process is improving.
Taiwan, Hong Kong, and Singapore: Legal frameworks are being developed.
Taiwan's parliament passed the Virtual Asset Services Act in its third reading on June 30, establishing a legal framework for licensing virtual asset service providers including exchanges, trading platform operators, custodians, underwriters, and lenders. Speaking at FinTechOn 2026 in Taipei on September 2, the chairman of Taiwan's Financial Supervisory Commission said the regulator is working on nine necessary sub-regulations to enforce the law, including a draft rule on stablecoins expected to be released and implemented as early as the first quarter of next year.
In Hong Kong, legislator Duncan Chiu has called on the Securities and Futures Commission to establish an independent digital asset division encompassing tokenized stocks, physical assets, and stablecoins, with the goal of bolstering the city's position as a global hub. This proposal mirrors the structural choice Japan made in August, consolidating digital asset oversight into a single dedicated unit rather than distributing it across existing departments.
On September 1st, the Monetary Authority of Singapore (MAS) released its consultation on stablecoins, proposing separate issuance licenses, fully segregated and secured reserves, a 5-day face value repayment period, and a ban on issuers paying interest. The consultation concluded on October 16th.
Australia and the Philippines: Deadlines and Pauses
Australian digital asset companies operating under a temporary legal exemption have until September 30 to apply for an Australian financial services license, or face penalties of up to 10% of their annual revenue. The Corporate Entities Amendment Act (Digital Assets Legal Framework) 2026 was Royally approved on April 8 and takes effect on April 9, 2027. Instead of creating a separate regime, the Act integrates digital asset platforms and custodians into the existing Corporate Entities Act licensing structure, a similar principle to what South Korea has applied to brokerage firms.
The Central Bank of the Philippines (Bangko Sentral ng Pilipinas) is taking the opposite approach, proposing a 12-month moratorium on registering new payment system operators while reviewing licensing rules, along with closer oversight of transactions by virtual asset providers. This proposal remains open for public comment. This is reminiscent of a regional trend toward regulatory frameworks that involve regulators choosing to slow adoption while they rewrite the rules.
Disclaimer: The content in this article is for informational, research, data analysis, and reference purposes only regarding the cryptocurrency market. All opinions, assessments, forecasts, or opinions reflect the author's perspective at the time of publication and do not constitute investment advice, solicitations for buying or selling, trading recommendations, advertising, marketing, or promotion of any financial products, services, or cryptocurrencies. Mentions of projects, tokens, protocols, exchanges, wallets, or cryptocurrency service providers (CASPs) are for research, analysis, or informational purposes only and should not be construed as endorsements, recommendations, or guarantees in any way. HCCVenture does not broker, advertise, market, promote, or connect users in Vietnam with any cryptocurrency services from CASPs. HCCVenture does not accept asset custody, investment mandates, manage assets, or execute transactions on behalf of clients. All investment decisions are made entirely through the reader's own research (DYOR), evaluation, and responsibility; HCCVenture is not liable for any losses or damages arising from the use of or reliance on the information presented in this article.
Compiled and analyzed by HCCVenture
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