ABSTRACT
Chapter 8 covers cryptoasset regulatory policies in selected advanced Asian economies. It starts with a consideration of the position in China, which has been the first state to organise issuing a state-backed cryptocurrency, although it is only be issued in Shenzen and Suzhou and otherwise cryptocurrencies are currently banned. The chapter also engages in a consideration of the position in China regarding ICOs and the potential future for cryptocurrencies there, especially after some of the Chinese exchanges migrated to Hong Kong when the Chinese Government banned their activities. There is also a consideration of the position in India where the current position is against cryptocurrencies being used. In Japan they are treated as assets. This is the first Asian economy with a regulatory regime and a legal definition, although they have categorised cryptocurrencies into two different categories. Exchanges must engage in “know your client” and face minimal capitalisation rules and appropriate compliance obligations. Profits made on cryptocurrencies are liable to income tax. Singapore is also considered, where a forward looking but cautious approach is being adopted, though at the moment there is no specific regulation. South Korea has the third largest cryptomarket after Japan and the US. Exchanges are taxed there at the standard rate of corporate tax. Unusually many banks in the country offer access to crypto accounts. The chapter ends with a comparative note on this developing market.
