Vietnam Fines Crypto Users, Japan Reclasifies Cryptos as Assets
Vexoda Newsroom
Cryptocurrency users in Vietnam face hefty fines for trading on unlicensed exchanges, while Japan reclassifies cryptos as financial assets with new regulations and tax benefits. Meanwhile, South Korea
In a significant move against offshore cryptocurrency usage, retail investors in Vietnam could be fined up to $1,900 if they trade on unlicensed exchanges like Binance or OKX. Despite this stringent measure, the Vietnamese Finance Ministry has yet to issue any licenses for local crypto exchanges as of September 2026.
The situation is compounded by the fact that domestic investors trading in cryptocurrencies designated exclusively for foreign investors can face even harsher penalties—up to $3,800. Cryptocurrency companies operating without a license or failing to properly identify customers could be fined up to $7,600. This crackdown highlights Vietnam's commitment to regulating its digital asset market.
In Malaysia, the Network School in Forest City has been embroiled in controversy over allegations of hosting Israeli citizens using second passports. Activists from Malaysia Protest 4 Palestine have accused the school of becoming a “gathering place for Israeli entrepreneurs,” despite no diplomatic relations between these countries and Israel's ban on citizen visits.
Japan recently reclassified cryptocurrencies as financial assets, moving them out of the Payment Services Act into the Financial Instruments and Exchange Act. This change brings crypto under stricter regulations but also offers potential tax benefits, reducing current rates from up to 55% to approximately 20%, effective in 2028.
The move by Japan could significantly impact traders as it introduces harsher fines for unlicensed operations—up to 10 million yen or a decade of imprisonment. Additionally, new regulations ban insider trading and will be enforced by the Securities and Exchange Surveillance Commission.
South Korea has taken steps towards integrating cryptocurrencies into its national asset management framework. The Ministry of Economy and Finance is rewriting the State Property Act to include crypto as part of 'national assets,' potentially allowing for future government involvement in yield farming or similar activities on platforms like Aave.
Other developments in South Korea include ongoing investigations by the Financial Supervisory Service (FSS) into cryptocurrency exchange hacks, with plans to address these issues through a new Digital Asset Basic Act. The FSS has initiated sanction procedures against Upbit operator Dunamu following an $30 million hack in November 2026.
Traders should closely monitor regulatory developments in Asia as they significantly impact the crypto landscape and trading environments. These changes could reshape how retail investors engage with cryptocurrency markets, necessitating adjustments to strategies and risk management.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.