In the latest Asia Crypto Week in Review, new crypto regulatory developments in India and China are causing a stir, and a Tether UAE expansion paints a complex picture of the emerging stablecoin landscape across the continent.
As Asia grapples with the dual challenge of regulating crypto and harnessing its potential, the coming months and years will be crucial in shaping the future of this dynamic and rapidly evolving space.
India’s Market Regulator Proposes Multi-Agency Crypto Oversight
The Securities and Exchange Board of India (SEBI) has tabled a collaborative approach to overseeing cryptocurrency trading.
The move comes as the Reserve Bank of India (RBI) expressed concerns about stablecoins and a desire to ban them altogether. The regulator’s stance is notably different from the central bank’s, which has maintained a cautious approach towards crypto.
The Indian market regulator has recommended that the oversight of crypto trading should not be the sole responsibility of a single entity.
Instead, SEBI suggests multiple regulators should oversee the rapidly evolving crypto sector. For example, the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA) would oversee insurance and pension-related virtual assets.
This recommendation was made to a government panel, which is in the process of formulating policy recommendations for the Finance Ministry.
SEBI’s proposal is being seen as a move to ensure a balanced regulatory framework that can foster innovation while addressing potential risks associated with crypto trading.
Meanwhile, the RBI’s apprehension towards crypto, especially stablecoins, stems from concerns over financial stability and the potential for misuse in illicit activities.
China’s Crypto Crackdown on Underground Tether Ring
In a separate development, Chinese authorities have dismantled an underground banking operation involving the use of $1.9 billion in Tether (USDT) to facilitate illegal transactions.
The crypto crime involved 193 suspects across 26 provinces in an underground banking operation that was primarily based in the Chinese city of Chengdu and used the USDT stablecoin to exchange foreign currencies.
The city police issued a media report highlighting the details of the underground operations and said that the underground USDT banking operations began in January 2021 and were primarily used to smuggle medicine, cosmetics, and investment assets overseas.
According to local media reports, the authorities destroyed two underground operations in Fujian and Hunan.
The Chinese government has banned the use of crypto and crypto exchanges, along with Bitcoin mining operations. However, the local population has found ways to evade such a ban over the years.
Tether UAE Expansion Turns Heads in Stablecoin Industry
Amid regulatory challenges in various jurisdictions, Tether, the company behind the USDT stablecoin, is expanding its operations into the United Arab Emirates (UAE). This move is part of Tether’s strategy to tap into emerging markets and diversify its presence globally.
Wow, if this is true, Tether is apparently holding more US T Bills than all of the UAE and many other countries.
At this point, regardless of what you believe on their history, I think it’s hard to see the USG railroading these guys easily anymore. https://t.co/dw8IlgFFnu
— Collins Belton (@collins_belton) July 31, 2023
Tether has partnered with RAK Digital Assets Oasis (RAK DAO) to promote the introduction of BTC and stablecoin technology in Ras Al Khaimah. The collaboration aims to facilitate crypto payment adoption in the region and design blockchain-focused education programs.
RAK DAO is promoting web3 innovation and driving economic growth in the emirate. Through its educational arm, Tether Edu, the company behind the USDT stablecoin will develop initiative for people of varying skill levels, covering cutting-edge areas such as Bitcoin, blockchain, peer-to-peer technologies, stablecoin adoption, and real world crypto use cases.
In addition, Tether announced it would implement a USDT transaction monitoring system in collaboration with Chainalysis, a leading blockchain analytics company.
Enjoyed exploring the latest stories from China’s crypto industry to the India’s crypto industry? Then stay tuned with 99Bitcoins for next week’s Asia Crypto news round up!
EXPLORE: How To Buy Binance Coin (BNB) – A Beginner’s Guide
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
