Another week, another crypto-Asia update. In this week’s update, the focus was on maintaining regulatory clarity and strengthening digital asset infrastructure rather than making sweeping changes. Governments are tweaking what is already in place.
Here’s a look at this week’s biggest headlines in crypto Asia.
India officially reviews its VDA framework
India currently has over 100 million crypto users in the country, but lacks a proper framework to govern the sector. For now, the system is heavy on taxes and anti-money laundering (AML). However, investor protection is very limited.
The government has become aware of the shortcomings and a formal review is underway. The country’s regulators are now looking for ways to build a stronger network that keeps users safe while enabling innovation.
India reviews its entire crypto framework
New VDA rules could reshape the ecosystem
• Risk-based regulation
• License for exchanges
• Strengthened investor protection
• Action on wash trading
• Revision of 30% tax + 1% TDSIndia aims to align with G20 standards.
– Sapna Singh (@earnwithsapna) November 25, 2025
India reviews its entire crypto framework
VDA (Virtual Digital Asset) companies, both domestic and offshore, must register with the Indian FIU (Financial Intelligence Unit) since 2023 and follow strict AML and KYC (Know Your Customers) rules.
Yet there is no comprehensive law governing VDAs. Regulatory gaps have led to a loss of talent and confusion. Meanwhile, calls for reforms have intensified, particularly after India’s G20 presidency in 2023 and a Supreme Court ruling in May 2025 that highlighted the need for clearer laws.
The ongoing review is expected to address some of the biggest questions haunting investors, including how to balance innovation with investor security, how to regulate different types of digital assets like stablecoins, how to align with global standards while protecting the Indian financial system, and how to give businesses and users more legal certainty.
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Japan pushes for trade reserve rules
Japan is preparing to tighten its crypto rules again. The country’s Financial Services Agency (FSA) wants exchanges to set aside reserve funds that can be used to reimburse customers in the event of a hack, system outage or bankruptcy.
According to a Nikkei Asia report published on November 25, Japanese exchanges must keep customer funds in cold wallets; however, until now they were not required to set aside additional reserves in case something went wrong. The country’s regulators view this as a significant shortcoming, especially now, after several violations.
UPDATE
Japan just made it mandatory for crypto exchanges to maintain emergency cash reserves!
If an exchange fails or is hacked, customer funds remain safe! pic.twitter.com/upjd6kdGSt
– This Martini Guy ₿ (@MartiniGuyYT) November 25, 2025
The ASL wishes to fill this gap and will therefore present a new law on this subject to Parliament in 2026.
If that comes to fruition, the country’s exchanges will have to hold additional reserves, just like traditional securities firms that typically set aside billions of yen based on the volume of transactions they process.
To make things easier for exchanges, the FSA could allow exchanges to cover part of the requirements through insurance, following in the footsteps of Hong Kong and the UK, where the government has already introduced capital and insurance rules for crypto platforms.
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South Korean FSC targets anti-money laundering with stricter rules
South Korea is preparing to crack down hard on crypto money laundering operations in the country. Regulators plan to expand the travel rule so that even small transactions of less than 1 million won (about $680) must include contact details of the sender and recipient.
According to a local news report published on November 28, 2025, until now, cryptocurrency users in the country could avoid disclosures by dividing larger amounts into small transferable chunks that would not attract much attention, but this loophole is also about to close.
– Shunyatax Global (@shunyatax) November 28, 2025
The Financial Services Commission (FSC) said the move aims to prevent the use of crypto for tax evasion, drug trafficking and questionable overseas payments. Additionally, the government wants to prevent high-risk offshore exchanges from accessing the country’s citizens at large.
Additionally, it wants to strengthen financial health checks on local platforms and raise the bar for companies registering as virtual asset service providers.
Additionally, anyone with a criminal record related to drugs or tax crimes would not be allowed to become a major shareholder in crypto companies. The FIU could quickly freeze accounts in serious cases to prevent funds from disappearing during investigations.
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Key takeaways
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India revises VDA rules to strengthen investor protection and regulatory clarity
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Japan plans to reserve mandates for crypto exchanges to cover hacks and failures
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South Korea strengthens AML rules, expands travel rules and blocks high-risk offshore platforms
The article Crypto Asia News: India Reviews VDA Framework, Japan Pushes for Additional Reserves, South Korea Implements Stricter AML Rules appeared first on 99Bitcoins.
