• Hong Kong will issue its first stablecoin licenses in early 2026, starting with HKD-pegged tokens.
• A $7.4 billion crypto fraud led to a major conviction in the UK involving a Chinese national.
• Thailand and Kazakhstan are expanding digital asset initiatives through ETFs and national crypto funds.

Between September 29 and October 5, Asia’s cryptocurrency sector saw major developments spanning regulation, enforcement, and institutional adoption. Governments advanced national crypto initiatives, enforcement agencies took action on cross-border fraud, and financial institutions pushed deeper into digital asset markets. From Hong Kong’s upcoming stablecoin license framework to one of the world’s largest crypto fraud convictions in the UK, the week offered clear signals of Asia’s evolving digital finance environment.

Hong Kong Moves Forward with HKD Stablecoin Licensing

Hong Kong confirmed that the first batch of licenses for fiat-referenced stablecoins will be issued in early 2026. Secretary for Financial Services Xu Zhengyu said the licensing process is progressing on schedule. The Hong Kong dollar stablecoin will be prioritized. While other currencies like the RMB are allowed under law, their issuance requires assessment of monetary and strategic factors.

UK Court Convicts Chinese Woman in $7.4 Billion Bitcoin Fraud Case

Qian Zhimin, also known as Zhang Yadi, pleaded guilty in a London court over her role in a $7.4 billion Bitcoin fraud. Between 2014 and 2017, she allegedly defrauded 128,000 people in China and transferred the funds into Bitcoin. She later relocated to the UK and attempted to launder funds through real estate. UK authorities called it the world’s largest crypto seizure.

Thailand Plans Expansion of Local Crypto ETFs

Thailand’s Securities and Exchange Commission is drafting new rules to allow mutual funds to offer crypto ETFs beyond Bitcoin. Secretary-General Pornanong Budsaratragoon confirmed that the launch is scheduled for early next year. This follows an earlier plan to expand digital asset investment options for institutions.

Kazakhstan Launches Crypto Fund, Buys BNB as First Asset

Kazakhstan introduced the Alem Crypto Fund as its first digital reserve vehicle. The fund is operated by Qazaqstan Venture Group and overseen by the Ministry of Digital Development. Registered under the Astana International Financial Centre, the fund purchased BNB as its first investment.

Qatar Bank Adopts JPMorgan Blockchain  as Arrests Made in $580M Crypto Scam in Bangkok

Qatar National Bank implemented JPMorgan’s Kinexys platform to process US dollar corporate payments in real time. The integration allows 24/7 payment processing for domestic corporate clients.
Thai police arrested Portuguese national Pedro M. for operating a crypto and credit card scam totaling $580 million. He had been residing illegally in Thailand since 2023 and was detained at a Bangkok shopping mall using biometric identification.