Asia Rushes to Regulate Stablecoins as Trump's Dollar Embrace Spurs Urgency

As of August 2, 2025, Asian nations are hurriedly updating their stablecoin regulations in response to the growing institutional interest and President Trump's embrace of US dollar-pegged cryptocurrencies. Countries like South Korea, Hong Kong, Malaysia, Thailand, and the Philippines are now looking to launch their own local currency-backed stablecoins, driven by concerns over capital flight and the dominance of the dollar in the current stablecoin market.

Regional heavyweights, including e-commerce giant JD.com and Ant Group, the fintech affiliate of Alibaba, are planning to capitalize on this trend by applying to become stablecoin issuers. In South Korea, the ruling Democratic Party has recently proposed the Digital Asset Basic Act, which would create a pathway for local firms to issue won-based stablecoins. However, the central bank has raised concerns about the potential impact on the country's capital liberalization and the won's internationalization.

Across Asia, authorities are grappling with the delicate balance of fostering innovation and maintaining monetary policy control. While some see local stablecoins as a way to streamline cross-border transactions and provide more efficient on-chain liquidity, others worry about the risks of private currencies undermining the traditional financial system.