Asia Crypto Roundup: OKX Gets License in Singapore, India Reconsiders Global Exchange Registrations, and More

The crypto scene in Asia continues to evolve significantly, with key developments reshaping the market in Singapore, India, and Japan.

As regulatory frameworks strengthen across the region, exchanges like OKX are seizing new opportunities. At the same time, India is rethinking its stance on global platforms, and Japan is moving toward more favorable tax treatment for crypto investors.

OKX Secures Key License for Singapore Expansion

On September 5, OKX, one of the prominent global crypto exchanges, announced that it had secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This approval follows its earlier in-principle license and marks a remarkable milestone in the exchange’s global expansion.

With this license, OKX can provide regulated digital payment services in Singapore, a vital market in its regional strategy. As a part of its expansion, the company appointed Gracie Lin as OKX Singapore’s CEO. Lin’s leadership, with her extensive background in public policy and tech startups, is part of OKX’s broader goal to align with local regulations.

Furthermore, the exchange intends to enhance its product offerings. It aims to integrate bank account connectivity for seamless deposits and withdrawals, offering greater convenience for local users.

“We’re committed to contributing to Singapore’s digital economy by offering secure and transparent services,” OKX stated in its official statement.

Read more: OKX Review 2024: A Comprehensive Guide to the Leading Crypto Exchange

India May Permit Two Offshore Exchanges by 2025

India’s crypto sector is also witnessing a potential turning point this week. Local media recently reported that the Financial Intelligence Unit-India (FIU-India) is considering granting approvals to two more offshore crypto exchanges by 2025. This comes after Binance and KuCoin were permitted to resume operations earlier this year.

“We have received requests from four more offshore crypto exchanges to operate in India, and we assume that at least two of them will be permitted to resume operations by end FY25. This would be after undergoing a thorough review of transaction visibility, suspicious transaction reporting (STR), and other related issues,” the report reads.

The FIU’s decision follows a thorough review of anti-money laundering (AML) compliance protocols, addressing concerns that led to previous bans. Offshore exchanges that seek to re-enter the Indian market must meet stringent AML standards, including transaction transparency and suspicious transaction reporting. 

If approved, the reopening of the Indian market could spur competition, with major players like Binance and KuCoin bringing global liquidity to India’s growing crypto industry. Meanwhile, for investors and traders, this could mean greater access to diverse markets, bolstering adoption and innovation in the country.

South Korea Targets Illegal Crypto Trading with New Inspections

South Korea is ramping up its efforts to curb illegal activities in the virtual asset market. The Financial Supervisory Service (FSS) recently announced plans to inspect crypto exchanges to detect suspicious trading practices. These inspections are part of the government’s broader initiative to establish a safer digital asset market under the new Virtual Asset Users Protection Act.

“The FSS will establish market order through stern punishment against illegal activities that may be identified in the process of its inspection, and will push for the revision of regulations if necessary by identifying the areas in the system where improvements are needed,” the agency said as reported by local media.

The FSS will focus on two major won-based exchanges, with the possibility of expanding the inspection to other platforms if irregularities are found. The inspections will scrutinize compliance with regulations concerning asset protection and transaction transparency.

Japan’s Regulator Proposes Reforms to Lower Crypto Tax Rates

Japan’s Financial Services Agency (FSA) has introduced a proposal for tax reform that could benefit the country’s crypto investors. The agency is considering integrating crypto assets into the financial taxation framework, potentially reducing the tax burden on virtual currency transactions. 

Currently, crypto investors face a maximum tax rate of up to 55%, a rate much higher than the 20% flat rate applied to other financial products. The FSA’s proposal focuses on expanding loss offset provisions for various financial products. It could help alleviate this disparity and encourage more investment in the digital asset sector.

Read more: How to Reduce Your Crypto Tax Liability: A Comprehensive Guide

Alongside tax reforms, Japan has seen growing interest in stablecoins. A new initiative, Project Pax, aims to create a cross-border stablecoin transfer platform, addressing inefficiencies in global remittances.

Ripple CEO Brad Garlinghouse recently also highlighted Japan’s potential as a leading stablecoin market. He emphasizes the demand for a yen-backed stablecoin as regulatory clarity improves.

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