Retail users in Vietnam trading crypto through offshore exchanges such as Binance or OKX face significant financial risks. Starting in September 2026, they face potential fines of $1,900 for each trading violation on unlicensed platforms.
The policy targets a market that records up to $220 billion in crypto activity, forcing traders to reassess where they park their funds.
Japan Chooses the Path of Parity
While Vietnam tightens rules, Japan is taking a different route through revisions to the Financial Instruments and Exchange Act. The country is classifying crypto as a financial asset on equal footing with traditional finance (TradFi) instruments.
This parity comes alongside strict market oversight. Japan is strictly prohibiting crypto insider trading, monitored directly by the Securities and Exchange Surveillance Commission. Unlicensed platforms operating in the country will face penalties of a 10 million yen fine or up to 10 years in prison.
In return for compliance, the Japanese government is easing the burden on investors. The crypto tax rate, which currently reaches up to 55%, will be reduced to around 20%. The new regulation is scheduled to take effect in 2028 and includes a three-year loss carryforward provision.
Can Security Lapses Be Penalized?
Shifting to South Korea, regulators are exploring ways to penalize security lapses at exchanges. The Financial Supervisory Service (FSS) launched sanction procedures against Dunamu, the operator of the Upbit exchange, following a $30 million hack in November 2025. However, these enforcement efforts have run into regulatory gaps: the Virtual Asset User Protection Act does not provide sanctions for hacks or IT system failures.
While addressing these security concerns, the government has introduced a new bill called the National Asset Basic Act. The legislation proposes that crypto assets and intellectual property (IP) be included in the official definition of national assets.
Offshore Exchanges Enter Local Markets
Expansion news comes from several Asian countries. Bybit launched a regulated platform in Indonesia after completing its acquisition of local exchange NOBI. During the transition, they opted to retain NOBI’s senior team to manage day-to-day operations.
Elsewhere, Coinbase is facilitating easier access for users based in China. The exchange opened identity verification using Chinese national ID cards and addresses, removing a legacy requirement that mandated a Hong Kong residential address.
Meanwhile, the Network School project in Malaysia has run into controversy. The project was accused of hosting Israeli citizens using dual passports, triggering sensitive issues given that Malaysia maintains no diplomatic relations with Israel.
Asia’s regulatory landscape is moving in two contrasting directions - between countries restricting retail access and those integrating crypto into the mainstream financial system. As these new frameworks take effect between 2026 and 2028, the balance of power across the region’s crypto market is set to change dramatically.
Reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
