TL;DR: It was two steps forward, one step back for the digital asset sector in Asia this week, as Thailand consults on regulation to progress Thai baht stablecoins and Hong Kong expands its tokenized settlement infrastructure pilot, just as China reaffirms commitment to its crypto ban by adding virtual assets as a target in its ongoing anti-corruption campaign.
Key Takeaways:
Thailand consults on stablecoins regulation
The Bank of Thailand (BOT), the country’s central bank, is preparing to announce and solicit public comment on new measures to regulate stablecoins, Buy Now Pay Later (BNPL) businesses, and high-value gold transactions, with the aim of implementing the proposed rules by March 2027.
BOT Governor Witai Rattanagorn confirmed the measures to the press on October 29, saying that the BOT aims to have them implemented between November 2026 and March 2027.
Specifically, the central bank wants to reduce credit bureau check fees, upgrade Money Changer businesses, and regulate gold trading with cash exceeding 10 million baht ($296,234), BNPL businesses—also known as Deferred Payment Credit schemes, which provide short-term installment financing at checkout—and Thai baht stablecoins.
The BOT already launched its consultation on the latter on October 19, proposing a dedicated regulatory framework that requires fully backed, 1:1 THB stablecoins, with regulated issuers and wallet providers.
“The Bank of Thailand views THB stablecoin, a digital currency pegged to the Thai baht at a 1:1 ratio and fully backed by assets, as a suitable tokenized money for certain payment scenarios, particularly in supporting innovations utilizing DLT technology and linking to tokenized assets,” said the BOT when announcing the consultation. “THB stablecoin’s role is to complement, not replace, the existing payment system, operating within an open-loop market structure that clearly separates the roles of the issuer (responsible for issuing, redeeming, and managing the backing assets) and wallet providers (offering storage, transfer, payment, and trading/exchange services to the public).”
In terms of its proposed regulation, the bank added that, “due to the characteristics of THB stablecoin, which can support payments on the DLT network and is linked to tokenized assets under an open market structure, the Bank of Thailand places importance on strict supervision.”
The consultation is open to feedback until November 17.
Meanwhile, testing continues under the BOT’s programmable payment sandbox, which is evaluating the settlement of payments and related transactions using electronic data units capable of executing automated conditions via DLT and smart contracts.
Thailand isn’t the only jurisdiction exploring ways to bring digital assets into the mainstream.
Hong Kong plans stablecoin trials for tokenized government debt
The Hong Kong Monetary Authority (HKMA) has expanded its tokenized settlement infrastructure to support transactions around the clock, while preparing to include regulated stablecoins in government debt trading trials.
At the Hong Kong FinTech Week 2026, held November 2-6 and co-organized by the HKMA and Invest Hong Kong—the former being the special administrative region’s top finance sector regulator and central bank, the latter the department of Government responsible for Foreign Direct Investment—the regulator announced several new initiatives across four categories deemed crucial to strengthening Hong Kong’s fintech capabilities. These were application and governance of agentic finance; driving readiness for post-quantum cryptography (PQC); accelerating 24/7 settlement of tokenized transactions under ‘Project Ensemble’; and expanding cross-border payment connectivity.
On Project Ensemble, Hong Kong’s financial market infrastructure initiative launched in May 2024 to foster a tokenization ecosystem and establish next-generation digital settlement layers, the HKMA revealed it was advancing its pilot phase, known as “EnsembleTX,” to a new stage, enabling 24/7 real-value transactions.
“The new capability enables participating banks and industry pioneers to leverage tokenized CeBM for the timely settlement of tokenized transactions beyond conventional operating hours, helping to meet the needs of an increasingly global and always-on digital financial market,” said the regulator. “This enhancement empowers banks and their clients to unlock new business opportunities, such as dynamic global allocation of funds, effective management of tokenized asset portfolios, and optimized treasury management.”
The HKMA has also completed trial trades involving Recognized Dealers conducting secondary market transactions of tokenized Exchange Fund Bills, “enabling them to enhance efficiency in secondary and repo trading.”
The regulator said these trials would soon be expanded to include regulated stablecoins. It also invited stakeholders with “innovative real-value use cases that leverage tokenized deposits” to take part in the collaborative effort to further develop Hong Kong’s tokenization ecosystem.
“Hong Kong is well placed to capitalise on new growth opportunities in fintech,” said Eddie Yue, Chief Executive of the HKMA. “Looking ahead, we will continue to foster an enabling environment that advances responsible innovation, enhances resilience, and supports the sustainable development of the fintech ecosystem.”
While Hong Kong continues to stake its claim as an innovation and digital asset hub, mainland China’s stance on the technology remains resolutely skeptical.
China doubles down on anti-crypto stance
China’s Communist Party looks set to take an even more aggressive stance against crypto, as a new resolution adds virtual assets to the target list of its anti-corruption campaign and orders investigators to chase graft that moves through virtual currency, blockchain and money sent abroad.
According to a Bloomberg report, the resolution was adopted on October 29 at the Fifth Plenum, a closed-door meeting of the party’s top leaders; an English translation of the resolution was released by state news outlet Xinhua on November 1.
“We will redouble efforts to investigate new and disguised forms of corruption such as receiving returns later for abusing one’s power for the beneficiaries, reaping benefits from assets under the name of bribe givers or a third party, the “white glove” or agents concealing corruption activities in ostensibly legal forms, and the “revolving door” phenomenon of bureaucrat-merchant collusion after officials’ retirement,” read the resolution.
It went on to commit the party to “resolutely combat corruption committed via the internet, virtual currency, cross-border capital, and blockchain.”
Launched by Xi Jinping in 2012, China’s anti-corruption campaign has targeted officials at all levels of the Communist Party and state, aiming to curb graft and enforce party discipline, while also consolidating Xi’s political authority.
The new crypto-related measures do not change the law, as digital asset trading has been banned in China since 2021. Instead, they aim at officials, their families and fixers who park hidden wealth in digital coins and offshore accounts.
The move also doubles down on China’s long-standing ban on digital assets, which has been in place since 2021, when the People’s Bank of China (PBoC), along with several government departments, jointly issued the first “notice on further preventing and disposing of the risk of virtual currency trading speculation.”
In December 2025, the PBoC reaffirmed its hardline stance on the digital asset sector, committing to maintaining China’s prohibition on digital currencies while highlighting stablecoins as a particular concern.
More recently, in February 2026, eight top Chinese authorities issued a joint statement, reinforcing the country’s prohibition on digital assets and clarifying enhanced rules around stablecoins and real-world asset (RWA) tokenization.
Last week’s developments reaffirm this anti-crypto commitment from the mainland while signaling that Hong Kong is open to digital asset business—the Oasis in China’s crypto desert.
FAQs:
What would Thailand’s THB stablecoin framework require?
Baht stablecoins would be pegged 1:1 and fully backed by assets, with issuers and wallet providers kept in separate, regulated roles. The Bank of Thailand says they would complement, not replace, the existing payment system.
What is Hong Kong’s Project Ensemble?
It is the Hong Kong Monetary Authority’s initiative, launched in May 2024, to build a tokenization ecosystem and next-generation digital settlement layers. Its EnsembleTX pilot now supports 24/7 real-value transactions using tokenized central bank money.
Does China’s new resolution create new crypto restrictions?
Not legally, since crypto trading has been banned since 2021. The resolution instead directs anti-corruption investigators to pursue graft that moves through virtual currency, blockchain, and cross-border capital.
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