Asia's Crypto Market Grows: OKX Expands, India Rethinks Rules
OKX gains a key license in Singapore, India considers approving more global exchanges, and Japan proposes tax reforms to support crypto investors.
Asia's Crypto Market Sees Major Developments
The crypto landscape in Asia is evolving rapidly, with significant changes happening in Singapore, India, and Japan. As regulatory frameworks continue to tighten, exchanges like OKX are capitalizing on new opportunities, while countries like India and Japan are reassessing their crypto policies to promote innovation and growth.
OKX Expands in Singapore with Major License
On September 5, global exchange OKX secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This follows the exchange’s earlier approval in principle and allows OKX to offer regulated digital payment services in Singapore, a key market for the company's regional expansion. OKX's local growth strategy includes plans to improve user convenience by integrating bank account connectivity for easier deposits and withdrawals.
To lead its Singapore operations, OKX appointed Gracie Lin as the new CEO of OKX Singapore. Lin’s experience in public policy and tech startups will help the company stay aligned with local regulations as it expands in the region. OKX aims to contribute to Singapore’s digital economy by providing transparent and secure services, as highlighted in the company's official statement.
India Revisits Global Crypto Exchange Registrations
India’s crypto market could soon see new players entering the scene, as the Financial Intelligence Unit-India (FIU-India) considers allowing two more offshore crypto exchanges by 2025. This follows the recent re-entry of Binance and KuCoin, which resumed operations earlier this year.
According to local reports, the FIU-India is reviewing four applications from foreign exchanges seeking to operate in the country. To gain approval, these exchanges must meet stringent anti-money laundering (AML) standards, including transaction transparency and suspicious transaction reporting.
Should India grant these approvals, it could open the door for more competition in the market. For Indian crypto users, this would mean greater access to global liquidity and a wider variety of investment options, helping to boost crypto adoption and innovation in the country.
South Korea Intensifies Inspections to Combat Illegal Crypto Trading
South Korea is stepping up its efforts to tackle illegal crypto trading as part of its strategy to create a safer digital asset market. The country’s Financial Supervisory Service (FSS) announced it will conduct inspections on crypto exchanges to uncover suspicious trading activities. This move is part of the government’s broader Virtual Asset Users Protection Act.
The FSS's inspections will initially focus on two major won-based exchanges, though more platforms could be included if irregularities are detected. The inspections aim to enforce compliance with regulations surrounding asset protection and transaction transparency. The agency has indicated that it will take firm action against any illegal activities uncovered during these reviews.
Japan Considers Crypto Tax Reforms to Boost Investor Interest
In Japan, the Financial Services Agency (FSA) has proposed reforms to lower the tax burden on crypto investors. Currently, crypto transactions are taxed at rates as high as 55%, much higher than the 20% flat rate applied to other financial products. The FSA's proposed changes would integrate crypto into Japan's broader financial taxation framework and provide more loss offset provisions, making crypto investments more attractive.
Alongside these tax reforms, Japan is also exploring new opportunities in the stablecoin market. The Project Pax initiative aims to build a platform for cross-border stablecoin transfers, which would improve the efficiency of global remittances.
Prominent figures in the industry, like Ripple CEO Brad Garlinghouse, have expressed optimism about Japan’s potential in the stablecoin market. Garlinghouse emphasized the growing demand for a yen-backed stablecoin as regulatory clarity improves, suggesting that Japan could become a leading market for stablecoins in the near future.
Conclusion: Asia's Crypto Evolution Continues
The crypto market in Asia is undergoing significant regulatory changes, with countries like Singapore, India, and Japan leading the charge. As exchanges like OKX expand their reach and governments reconsider their crypto policies, the region is poised for continued growth and innovation in the digital asset space.
