Digital asset adoption grows in APAC amid regulatory shifts and security concerns

The adoption of digital assets in the Asia-Pacific region is increasing as regulatory uncertainty begins to lift. In Singapore, institutional interest has historically been tempered by the lack of a clear framework in the United States. However, recent developments in the U.S., such as the GENIUS Act regarding stablecoins and proposed SEC ‘Regulation Crypto Assets’, are providing the clarity necessary for banks and asset managers to engage more deeply.

Simultaneously, the region is grappling with security challenges that highlight the complexities of digital asset custody. In Hong Kong, the Hong Kong Monetary Authority has been updating guidance for authorized institutions to manage these risks. Recent security incidents, including a vulnerability in COLDCARD entropy generation and a US$320 million exploit involving the Liquid Network, underscore that while bitcoin redistributes trust through cryptography, users still rely on the integrity of software, hardware, and implementation models.