Standard Chartered HK to launch crypto ETF trading
Standard Chartered Hong Kong will reportedly launch trading services for crypto exchange-traded funds (ETFs) in November.
According to the bank’s wealthy clients study cited by local newspaper Ming Pao, nearly 80% plan to invest in digital assets within the next year, while more than 30% already hold some form of crypto exposure.
The survey covered over 500 respondents with at least 1 million Hong Kong dollars (about $128,650) in liquid assets.
Hong Kong has been ramping up its crypto ETF offerings, approving its first spot Solana ETF on Wednesday.
However, Hong Kong Exchanges and Clearing (HKEX) is reportedly taking a tougher stance toward firms seeking listings centered on crypto holdings. Bloomberg reported that the exchange has raised concerns about several companies attempting to list as “digital asset treasury” firms, questioning their compliance with listing rules and business viability.
South Korea to ban interest payments on stablecoins
South Korea plans to ban yield-bearing stablecoins, aligning with the US stablecoin rules.
Financial Services Commission (FSC) chairman Lee Eog-weon unveiled his agency’s intent on Monday in response to a statement from lawmaker Yoo Young-ha, who said interest-bearing structures should be blocked “in any form.”
The stance mirrors the GENIUS Act in the US, which bans interest payments on funds held or used for payment stablecoins.
Lee said South Korea would adopt the same principle as part of its second phase crypto legislation, which is expected to be submitted to the National Assembly before the end of the year.
However, Lee also said that stablecoins could play a broader role beyond crypto trading, particularly in payments, remittances and cross-border transactions, and said the FSC would prepare to implement the law “swiftly and effectively” once it passes.
Thai finance official resigns amid pig butchering link allegations
Thailand’s deputy finance minister, Vorapak Tanyawong, resigned on Wednesday following allegations linking him to Cambodia-based pig-butchering scam networks.
Investigative newsletter Whale Hunting claimed that Vorapak’s wife received $3 million in cryptocurrency from Chinese-Cambodian criminal networks, which he was tasked with investigating as part of a government committee.
Vorapak denied any wrongdoing and said he was stepping down to focus on his legal defense.
Pig butchering is a form of cybercrime where scammers build trust with victims online before luring them into dummy investments, often using cryptocurrency. In recent years, criminal networks have abducted civilians and tourists across Southeast Asia, trafficking them into compounds where they are forced to run such scams.
Earlier this month, the US Department of the Treasury and the UK Foreign Office announced the largest-ever coordinated sanctions targeting Southeast Asia’s scam networks. The US designated Cambodia’s Prince Group, led by tycoon Chen Zhi, as a transnational criminal organization for running industrial-scale fraud and human trafficking operations, while the UK imposed parallel sanctions on Chen and associates.
The Treasury’s Financial Crimes Enforcement Network (FinCEN) moved to sever Huione Group from the US financial system after determining it had laundered more than $4 billion in illicit proceeds. The Cambodia-based conglomerate’s subsidiaries include crypto payment services and a cryptocurrency exchange.
South Korea has also been grappling with the human toll of the scam economy. President Lee Jae-myung has recently ordered the formation of an emergency task force and imposed a travel ban to Cambodia’s scam hubs. On Thursday, 57 South Koreans were arrested in Cambodia following a raid on a scam compound.
Pig-butchering scams and related abductions have plagued Southeast Asia and neighboring regions for years, often involving networks with ties to local elites and politically connected figures. The recent surge in kidnappings and international sanctions has finally brought the crisis to the highest levels of government attention and mainstream media coverage.
Japan may let banks hold Bitcoin
Japan’s Financial Services Agency is considering allowing banks and insurance companies to invest in cryptocurrencies for their own portfolios.
The proposal, discussed at the FSA’s fourth Working Group on the Crypto-Asset System on Wednesday, would let parent banks and insurers hold crypto as proprietary investments if they meet capital and risk management requirements. It’s part of a plan to move crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act, effectively treating digital assets like other financial instruments.
Currently, Japanese banks and insurers are barred from directly owning cryptocurrencies. Only their licensed subsidiaries can manage crypto investments. Under the proposed framework, the FSA would gradually expand the scope of what parent institutions can do.
However, the proposal does not allow banks or insurers to broker or sell crypto to retail customers. Regulators worry that doing so could mislead consumers into thinking cryptocurrencies carry the same protections as deposits or insurance products.
The working group also discussed related reforms, including insider trading rules for crypto, stronger prohibitions on market manipulation, tighter enforcement against unregistered overseas exchanges and new custody requirements for licensed platforms.
The FSA aims to finalize the framework ahead of a legislative proposal for the 2026 parliamentary session.
Yohan Yun
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