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Asia’s Crypto Market Sees Huge Shifts as China, Japan, and Turkey Take Bold Steps

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  • China’s OTC crypto brokers saw over $20 billion in inflows for three consecutive quarters, totaling $75.4 billion.
  • Japan’s new crypto gaming regulations aim to ease entry for businesses managing in-game digital assets and expand the sector.
  • Turkey’s government decided against imposing additional taxes on stock and cryptocurrency trading profits, easing investor concerns.

Asia saw crypto developments this week, ranging from calls for enhanced research in China to regulatory shifts in Japan and Turkey. Key highlights include a former Chinese finance minister urging deeper cryptocurrency studies, Japan reforming crypto gaming regulations, and Turkey deciding against new tax plans on crypto profits. These updates reflect the region’s growing stance on digital assets.

China’s Cryptocurrency Sector Faces Challenges and Opportunities

China’s cryptocurrency activity remains high despite a challenging regulatory sector. According to Chainalysis, Chinese over-the-counter (OTC) crypto brokers saw inflows surpassing $20 billion for three straight quarters.

This marked a nine-month total of $75.4 billion, emphasizing the ongoing demand for crypto trading. However, these transactions operate in a gray area due to China’s strict bans on crypto trading and mining.

Meanwhile, at the Tsinghua Wudaokou Chief Economists Forum, former Vice Minister of Finance Zhu Guangyao advocated for enhanced cryptocurrency research. Zhu highlighted the importance of understanding crypto’s risks and opportunities, noting a shift in global policies, particularly in the U.S., where cryptocurrency is now part of political discourse. He also acknowledged the progress made by BRICS nations in adopting digital assets.

Japan and South Korea Implement New Crypto Regulations

Japan is also revisiting its approach to cryptocurrencies, particularly in the gaming industry. On September 24, Japan’s Financial Services Agency announced plans to reform regulations on in-game crypto assets. 

The goal is to simplify the process for companies managing these assets, making it easier for businesses to enter the blockchain gaming market. This reform could encourage more companies to participate in the growing sector.

In South Korea, regulatory updates focus on protecting users and preventing fraud. South Korean authorities have warned that those involved in crypto scams causing over $4 million in losses could face life imprisonment. 

Additionally, South Korea is launching a Digital Asset User Protection Fund to assist users affected by exchange collapses. The fund aims to help recover lost funds, especially after a wave of exchange shutdowns in the country.

Turkish and Russian Crypto News Highlight Varied Responses

In Turkey, the government decided not to pursue additional tax measures on stock and crypto trading profits. This announcement, made by Vice President Cevdet Yilmaz, came after previous discussions on the topic. The decision provides relief to traders and investors in the region.

Meanwhile, in Russia, authorities discovered an illegal crypto mining operation in Dagestan, which caused power outages. The miners had set up underground devices to avoid detection, highlighting the ongoing challenges of regulating cryptocurrency in the region.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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