Asia’s weekly TOP10 crypto news: Kyrgyzstan Halts National Stablecoin Project, South Korea Tightens Cross-Border Virtual Asset Oversight and Top10 News

1. Kyrgyzstan Terminates National Stablecoin USDKG Project and Liquidates Issuer Exchange link The government of Kyrgyzstan has decided to terminate the national stablecoin USDKG project and instructed the Ministry of Finance to liquidate its issuer EVA as well as Coin Nomad Exchange, the country’s first state-owned cryptocurrency exchange. Launched in November 2025, USDKG was touted as the world’s first state-issued stablecoin backed by physical gold and pegged 1:1 to the US dollar, with an issuance volume of approximately 50 million tokens mainly for cross-border settlements. In May 2026, the United Kingdom added the issuer of USDKG to its sanctions list on suspicion of supporting the Russian government through economically significant business activities. Officials stated that the shutdown aims to optimize state-owned asset management, and USDKG holders may redeem their tokens for fiat currency or USDT. 2. South Korea Proposes Amendments to Foreign Exchange Enforcement Decree to Tighten Oversight on Cross-Border Virtual Asset Transfers link South Korea’s Ministry of Economy and Finance opened a public consultation on October 7 regarding amendments to the Enforcement Decree of the Foreign Exchange Transactions Act, aiming to refine the regulatory scope of “virtual asset transfer services”. Virtual asset transfers between South Korea and overseas conducted through custody, management, intermediary and other means, as well as relevant transfers between South Korean VASPs and personal wallets, will be included. Operators must register in advance and meet requirements including computerized facilities and at least two professional staff. Relevant virtual asset transfer records will be submitted through the Bank of Korea’s foreign exchange computer network in the future and may be shared with agencies such as the National Tax Service, Customs Service, Financial Supervisory Service and Financial Intelligence Unit (FIU) to monitor crypto-based circumvention of foreign exchange regulations and illegal fund transfers. 3. Russia’s New Rule: Crypto Miners Only Eligible for Class 4 Grid Connection, Subject to Priority Power Cut link Pursuant to Russian Government Resolution №1300 and statements from the Ministry of Energy, operators of cryptocurrency mining farms and mining infrastructure may hereafter apply for grid connection only under the fourth category of power supply reliability. This means such facilities may be subject to priority power cuts during power shortages or deteriorating system operating conditions to guarantee power supply for other consumers. The fourth power supply category was introduced in February this year, allowing qualified facilities to connect to the grid in power-scarce regions while bearing the risk of power outages at any time. The new rules also cover previously submitted but incomplete grid connection applications for mining farms. Russia’s Ministry of Energy stated that the measure aims to prevent power shortages caused by crypto mining and improve the utilization efficiency of existing grid infrastructure. 4. CPC Central Committee and State Council Issue Opinions to Build National Integrated Computing Power Network and National Blockchain Network link The CPC Central Committee and the State Council have issued the Opinions on Developing New Quality Productive Forces. In the chapter on advancing the in-depth integration of the real economy and the digital economy, it explicitly states that China will thoroughly carry out initiatives for the digital transformation of manufacturing, implement projects including the “East Data, West Computing” project, smart manufacturing, and the innovative development of the industrial internet, and build a nationwide integrated computing power network and national blockchain network. It will improve systems for the confirmation of data property rights, market transactions and benefit distribution, launch pilot demonstration projects for data elements, and foster internationally competitive digital industrial clusters. In addition, regarding the layout of future industries and technologies, the document mentions advancing the “AI Plus” initiative, embodied AI, quantum technology, brain-computer interfaces and other frontier areas. It also calls for expanding patient capital to support early-stage, small-scale and hard-tech investments. 5. 9 Japanese Institutions Complete Phase 2 Validation of Project Trinity, Achieving Cross-Chain DvP Atomic Settlement link Nine Japanese institutions including Sumitomo Mitsui Banking Corporation, Daiwa Securities, SBI Securities, Progmat and Datachain have announced the completion of Phase 2 verification of Project Trinity. The project aims to eliminate settlement asynchrony risks via delivery versus payment (DvP). During the test, Daiwa Securities and SBI Securities simulated the START market of Osaka Digital Exchange (ODX), and completed two cross-chain synchronized settlements using ST corporate bonds issued by SBI VC Trade and trust-type stablecoins issued by Sumitomo Mitsui Banking Corporation, which has verified the feasibility of the T+2 settlement cycle at this stage. 6. Dubai VARA Clarifies Reserve Audit Requirements; VASPs Must Maintain 100% Coverage of Client Liabilities at All Times link Dubai’s Virtual Assets Regulatory Authority (VARA) issued a circular on reserve asset audits on October 6, specifying the minimum requirements for independent audits of VASPs. VASPs must maintain reserves of no less than 100% of customer liabilities throughout the review period, held in the same virtual assets at a 1:1 ratio with daily reconciliation. The audit scope shall cover hot wallets, warm wallets, cold wallets, third-party wallet infrastructure and assets held by third-party custodians, and verify customer asset segregation, wallet control rights, and the existence of rehypothecation, lending or other usage scenarios. 7. HKMA and Bank Negara Malaysia Strengthen Cooperation to Advance Cross-Border Stablecoin and Tokenization Applications link The Hong Kong Monetary Authority (HKMA) and Bank Negara Malaysia (BNM) announced the strengthening of bilateral financial cooperation and will establish a joint working group at the policy level to promote compliant cross-border stablecoin applications between Hong Kong and Malaysia. Both sides will also enhance policy and regulatory exchanges in tokenization and digital currencies. The two parties plan to strengthen the connection between the real-time gross settlement (RTGS) systems of Hong Kong and Malaysia, and explore the interconnection between Hong Kong’s Central Moneymarkets Unit (CMU) and Malaysia’s RENTAS central securities depository system. 8. Tether Partners with National Bank of Kazakhstan and Alatau City to Explore Stablecoin and Tokenization Pilots link Tether announced the signing of a memorandum of understanding with the National Bank of Kazakhstan (NBK) and the Almaty City Administration to jointly explore stablecoins, asset tokenization and DeFi applications. The three parties will study stablecoin issuance models and application scenarios, and formulate concepts and pilot schemes for a stablecoin pegged to the Kazakh tenge. They will also explore establishing an asset tokenization framework, potentially adopting Tether’s Hadron tokenization platform, and plan to launch a pilot project in Almaty. 9. Thailand SEC Releases 11 New Rules for Crypto ETFs, Effective Oct 16; Only Bitcoin and Ethereum Allowed in Phase One link Thailand’s Securities and Exchange Commission (SEC) announced on October 8 that it has officially issued 11 regulatory rules related to cryptocurrency ETFs, which will take effect on October 16. In the first phase, ETFs are only permitted to invest in Bitcoin and Ethereum. The products must be listed and traded on the Stock Exchange of Thailand, adopt passive investment strategies, and the annual average net exposure to a single crypto asset shall not be less than 80% of the fund’s net assets, with assets held by regulated digital asset custodians. In addition, the new rules allow mutual funds and private equity funds to invest in domestic Thai cryptocurrency ETFs, but prohibit securities firms from providing financing for purchases. Retail investors are temporarily not allowed to invest in overseas cryptocurrency ETFs through Thai securities brokers. 10. Binance Internal Report Reveals 21 Accounts Linked to Iran Network; Binance Says Relevant Accounts Have Been Frozen link The Wall Street Journal reported that an internal Binance investigation report obtained by the newspaper shows a network linked to US-sanctioned Iranian financier Babak Zanjani conducted transactions through 21 personal and corporate accounts on Binance, with a total transaction volume of approximately $850 million. Binance responded that it has blocked and liquidated all associated accounts violating sanctions, and emphasized that total account transaction volume cannot be equated with funds flowing to the Revolutionary Guard. At least $67 million was transferred from two accounts to crypto wallets identified as linked to Iran’s Islamic Revolutionary Guard Corps. The report was compiled by Binance in April this year at the request of the UAE’s Financial Intelligence Unit, and some accounts were logged in from Tehran multiple times. Internal records also show that terminating certain high-value client accounts requires approval from senior management. Follow us Twitter: https://twitter.com/WuBlockchain Telegram: https://t.me/wublockchainenglishRead More