Regulators across Asia are urging banks to prepare for stablecoin legislation as governments accelerate efforts to establish frameworks for digital currencies.
John Cho, chief stablecoin officer at the Kaia DLT Foundation, said regulators are directly approaching banks and asking them to begin preparing before legislation is finalized. The push reflects expectations that stablecoins could reduce costs and improve efficiency across local financial systems.
Hong Kong introduced dedicated stablecoin legislation in 2025, while Singapore, Japan and South Korea are also developing frameworks. Cho expects every country in Asia to adopt some form of stablecoin specific legislation within the next 24 to 36 months.
The region represents a significant opportunity because of its fragmented financial infrastructure, currencies and payment systems. Major issuers including Tether and Circle are already expanding across Asian markets.
Japan has taken a more restrictive approach by requiring stablecoin reserves to be held domestically. Circle’s USDC, distributed through SBI, is currently the only global dollar stablecoin approved in the country, according to Cho.
