Korean bill to legalize ICOs, Chinese firm’s Ethereum RWAs mystery: Asia Express

By Pune Media On Sep 5, 2025

South Korean lawmaker wants to bring back ICOs

A South Korean lawmaker has introduced draft legislation to create a framework for cryptocurrencies, including legalizing initial coin offerings (ICOs) and setting rules for stablecoin issuance.

Lee’s proposes bill that brings ICOs back to South Korea. (KNN News/Youtube)

The proposal, announced Thursday by ruling Democratic Party lawmaker Lee Kang-il, would lift South Korea’s ban enacted in 2017 during a speculative frenzy remembered as the “ICO boom.” The prohibition pushed Korean projects to launch tokens overseas. Lee’s bill seeks to replace the blanket prohibition with a disclosure-based regime.

The draft law defines the digital asset sector as an independent industry, dividing it into nine business categories that include trading, brokerage, custody, payments and investment management. Trading and brokerage firms would require licenses, while other activities would operate under a registration system.

Stablecoin issuers would face a dedicated oversight framework, including minimum capital requirements of 1 billion won (about $717,000), reserve backing in short-term liquid assets, and mandatory monthly internal and annual external audits.

Bitcoin treasuries don’t find support in HK

Hong Kong-listed firms experimenting with Bitcoin treasuries aren’t finding the same regulatory acceptance as US companies, according to finance outlet Caixin.

Bitcoin gained traction as a company treasury asset in a blueprint popularized by Strategy (formerly MicroStrategy) and successfully adopted by Japan’s Metaplanet. Earlier in the year, the approach offered a quick way to boost a company’s share price. Some firms pivoted to Ether treasury strategies as Bitcoin momentum slowed.

Many crypto treasury companies have faced criticism for using it as a PR stunt or as a way to prop up struggling balance sheets without properly weighing the risks.

Hong Kong and Japan each have 12 entities holding Bitcoin, ranking them both in the global top five. (BitcoinTreasuries.Net)

In Hong Kong, listed firms such as Boyaa Interactive have emerged as some of the largest publicly traded Bitcoin holders in Asia, while early adopter Meitu, once nicknamed “China’s MicroStrategy,” has sold off its crypto holdings and rewarded its investors.

Despite success cases, an anonymous source cited by Caixin said that Hong Kong regulators are not very receptive to crypto treasury companies.

The pattern mirrors other crypto hype-driven plays in the city. After Hong Kong’s Stablecoin Ordinance came into force on Aug. 1, several companies released vague stablecoin announcements to boost share prices. Eddie Yue, CEO of the Hong Kong Monetary Authority, said that some firms’ stock activity surged just by declaring plans to explore stablecoins without roadmaps.

Yue and HKMA have already issued warnings against speculative behavior related to stablecoin companies. Regulators have yet to make a public statement on crypto treasury companies.

China’s state-owned firm erases Ethereum RWA posts

China’s online community is confused about whether or not Shenzhen’s Futian Investment Holdings, a state-owned enterprise, really issued 500 million yuan (about $70 million) worth of offshore digital bonds as real-world assets on Ethereum.

A report on major local media outlets distributed by several English-based crypto news sites stated that the nation’s first real-world asset bonds on a public blockchain network were issued.

Some reports cited an official announcement on the company’s website, while others cited the company’s WeChat account. However, Magazine has confirmed that both posts have been removed.

Members of the online community also noticed that the information is no longer available on Futian Investment Holding’s official website. At the time of writing, the company has not addressed the reports or why its announcement has been erased.

Machine translation of an online discussion shows readers questioning the accuracy of the report. (Sina Finance/Baidu)

Japan’s plan to bring crypto under the securities law framework

Japan’s Financial Services Agency (FSA) has proposed bringing crypto under the country’s Financial Instruments and Exchange Act (FIEA), which would extend investor protection measures for securities to digital assets.

In the proposal unveiled Tuesday, the FSA claimed that crypto has become a mainstream investment product without adequate safeguards. More than 12 million crypto accounts (which are dominated by retail) in Japan now hold over 5 trillion yen (about $33.7 billion).

A breakdown of Japan’s 5.9 million retail crypto accounts shows more than 80% hold under 100,000 yen. (FSA)

By bringing the assets under the FIEA, token issuers that raise funds would face disclosure requirements similar to those for securities, including governance information, use of proceeds and risks. For tokens without a clear issuer, such as Bitcoin or memecoins, the disclosure duties would fall on exchanges that list them.

Those exchanges would be subject to the licensing and conduct rules that govern securities trading platforms, including tighter advertising standards, suitability checks and a ban on loss compensation.

The FSA said that applying the FIEA framework for securities to crypto is appropriate to maintain fair markets and protect investors. However, it still won’t be enough to qualify cryptocurrencies as securities, as they do not grant legal rights or income streams.

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Yohan Yun

Yohan Yun is a multimedia journalist covering blockchain since 2017. He has contributed to crypto media outlet Forkast as an editor and has covered Asian tech stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking, and experimenting with new recipes.

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