Tether faces lawsuit over $42M frozen USDT, Australian crypto exchanges on licensing deadline: Asia Express
Stablecoin giant Tether confronts legal action from Thai business owners regarding frozen USDT linked to romance scam, while Australian digital asset companies risk substantial penalties if they fail to secure licenses by deadline.
THAILAND
Stablecoin issuer Tether sued by Thai entrepreneurs over $42M frozen in $61M romance scam case
A pair of Thai entrepreneurs have filed legal proceedings against Tether, the stablecoin issuer, in a district court located in New York, alleging the company unlawfully froze $42.4 million worth of Tether USDt (USDT) this past October, in connection with a larger pig butchering fraud operation.
According to the plaintiffs' allegations, Tether froze the $42 million in funds without obtaining a proper warrant in October 2025, acting on an unofficial request made by US Homeland Security Investigations.
A seizure warrant for the disputed funds was not issued by authorities in the Eastern District of North Carolina until February 2026. The warrant mandated the burning and reissuance of the tokens into a wallet controlled by the government.
Although the plaintiffs acknowledged their participation in the investment fraud scheme, the legal action challenges the freezing powers exercised by stablecoin issuers.
Thailand implements crypto Travel Rule with monitoring of self-custodial wallets
Thailand is strengthening its regulatory oversight of cryptocurrency transfers, including those involving self-custodial wallets, as the country works to comply with international Anti-Money Laundering (AML) requirements.
The Securities and Exchange Commission (SEC) in Thailand has released new Travel Rule regulations mandating that digital asset operators gather information regarding parties participating in crypto transfers.
The regulations are scheduled to become effective on Feb. 27, 2027.
Thailand SEC puts forward proposal for retail access to regulated international crypto derivatives
The Securities and Exchange Commission (SEC) in Thailand has put forward a proposal that would enable intermediaries to provide retail access to specific digital asset derivatives that are traded in foreign markets.
According to the proposal, qualifying products would be required to mirror crypto derivatives available for trading in Thailand, including their underlying assets, maturity dates, leverage ratios and settlement procedures.
These products would also need to be traded on an exchange utilizing a central counterparty for clearing operations and supervised by a regulator that is a member of designated international regulatory or exchange organizations.
The public consultation period will remain open until Sept. 30.
ASIA
Pencil Finance concludes $1M onchain lending program for 6.6K Southeast Asian students
Pencil Finance has successfully completed an onchain student loan cycle worth $1 million, providing financing options to 6,600 students located throughout Southeast Asia who lacked access to traditional lending services.
Out of the 6,600 students enrolled across 118 educational institutions and universities in Southeast Asia, approximately 1,050 received funding directly. According to Pencil, the loans targeted students who were underserved by conventional lenders, with 50% of borrowers being female and 93% coming from lower-income family backgrounds.
According to Pencil Finance, this represents the first-ever completely onchain lending cycle for student loans with transactions transparently documented on the blockchain network.
Digital asset custody partnerships announced by Ripple and Coincheck
Ripple has entered into a partnership with digital asset infrastructure firm SettleMint to provide financial institutions with comprehensive solutions for custody, issuance and management of tokenized assets throughout their entire lifecycle.
Digital asset service provider Coincheck Group has also formed a partnership with wallet infrastructure provider DFNS to develop digital asset wallet technology and custody services within Japan.
SINGAPORE
Singapore considers recognition of certain foreign-issued stablecoins
The Monetary Authority of Singapore (MAS) is revisiting its previous restriction regarding stablecoins issued across multiple jurisdictions, putting forward a pathway for certain jointly issued tokens to become eligible under its regulatory framework.
According to one proposal, stablecoins jointly issued by a Singapore-based issuer and a foreign issuer could receive regulation under the framework and carry the label "MAS-regulated stablecoins," on the condition that associated risks are adequately mitigated.
MAS is also evaluating the recognition of a select number of foreign-issued stablecoins that are regulated under comparable overseas frameworks, noting their potential application in cross-border wholesale transactions.
AUSTRALIA
Australian regulator warns unlicensed digital asset firms face penalties up to 10% of yearly revenue
Cryptocurrency companies in Australia that are operating under temporary regulatory exemptions have until Sept. 30 to submit applications for a financial services license or face potential penalties, including fines that could reach 10% of their annual turnover.
The Australian Securities and Investments Commission (ASIC) announced that businesses that require an Australian Financial Services license must submit an application or request modifications to an existing license prior to the deadline.
According to ASIC, more than 45 license applications related to digital assets have been recorded to date.
UAE
Standard Chartered introduces spot Bitcoin and Ether trading services in UAE
London-based multinational banking institution Standard Chartered has introduced spot Bitcoin and Ether trading services for institutional clients operating in the United Arab Emirates (UAE).
This development positions Standard Chartered as the first global bank to provide institutional digital asset trading services in the region and the first Global Systemically Important Bank (G-SIB) to offer such services, according to the bank's announcement.
JAPAN
Remixpoint sells entire altcoin portfolio
Remixpoint, recognized as one of Japan's largest corporate holders of Bitcoin, has liquidated its entire altcoin portfolio, retaining approximately 1,506 BTC ($115 million) as its sole cryptocurrency holding as it refocuses its crypto strategy exclusively on Bitcoin.
Remixpoint liquidated its holdings of Ether, Solana, XRP and Dogecoin for a total of 878.8 million yen ($5.5 million), producing a gain of 117.8 million yen ($736,000), based on a company disclosure released on Wednesday.
The company recorded profits on its sales of ETH, SOL and XRP but incurred a loss of 3.26 million yen ($20,000) on its DOGE holdings sale.
Japanese financial regulator requests stablecoin tax exemption
The Financial Services Agency (FSA) of Japan has submitted a formal request to exempt trust-type stablecoins from mandatory tax filings beginning in fiscal year 2027.
Metaplanet transfers 4,800 BTC valued at $377M to Coinbase
The Japanese Bitcoin treasury company has moved 10,270 BTC to Coinbase Prime during this week, sparking speculation regarding the possibility of the company liquidating its holdings.
FSA in Japan Issues Warning to Hong Kong-Based IZAKA-YA Regarding Unregistered Services
The Financial Services Agency of Japan has issued a formal warning to Izakaya Limited, based in Hong Kong, alleging that its cryptocurrency exchange services operate without proper registration.
SBI Holdings Acquires 20% Ownership in Indonesia's Ajaib Group
SBI Holdings of Japan will invest $270 million to obtain a 20% ownership stake in Ajaib Group, an Indonesian online brokerage platform. The objective is to expand its cryptocurrency business operations throughout the region and to advance SBI's yen stablecoin JPYSC.
HONG KONG
Hashkey becomes DTCC working group's first Asian crypto service provider member
Hashkey has joined the Depository Trust & Clearing Corporation's (DTCC) Digital Assets Advisory Services Industry Working Group, becoming its first Asian digital asset service provider member.
Hashkey now joins more than 100 other international financial institutions such as JPMorgan Chase, Goldman Sachs, Nasdaq and the New York Stock Exchange.
DTCC holds custody of $114 trillion in liquid assets, which includes stocks and exchange-traded funds. The working group was established to bridge traditional finance with decentralized finance (DeFi) infrastructure. DTCC has plans to introduce access to tokenized securities in October.
Bitcoin Asia conference atmosphere described as 'subdued'
The atmosphere at Bitcoin Asia held in Hong Kong was characterized as subdued according to reporting by the South China Morning Post.
Even with an encouraging speech by Binance founder Changpeng Zhao who proclaimed Bitcoin "will for sure become more important than gold" the lingering bear market atmosphere was unmistakable.
"Psychologically, I think this has been one of the hardest bear markets we've had, because this time it wasn't just the price of bitcoin that took a hit. This time, the Bitcoiners' ego also took a hit."
Brandon Green, CEO of conference organiser BTC
OSL Group Announces 65.8% Revenue Increase
Digital asset firm OSL Group, based in Hong Kong, announced a 65.8% increase in revenue in its financial results for the first half of the year.
SFC issues warning that Star Bridge Capital operates without license
The Securities and Futures Commission of Hong Kong has placed Star Bridge Capital Group on its Alert List following irregularities related to forced liquidation and millions of dollars in losses sustained by traders.
KOREA
Mirae Asset reveals crypto, stablecoin, tokenization strategy for Digital X
South Korean financial conglomerate Mirae Asset intends to develop a 150 trillion won ($109 billion) digital asset business centered around Digital X, the crypto exchange previously known as Korbit, according to reporting by The Korea Times.
The report indicated that Digital X will concentrate on cryptocurrency, stablecoins, real-world assets and security token offerings, with intentions to tokenize physical assets such as gold, silver and electricity.
These expansion strategies follow Mirae Asset Consulting's purchase of a 97.15% ownership stake in Korbit in July for a cumulative price of 141.4 billion won. The exchange was then rebranded as Digital X, representing the first instance of an affiliate of a South Korean financial group obtaining controlling ownership of a domestic cryptocurrency exchange.