Asia's Digital Asset Crackdown: How Accountability is Becoming More Personal

Welcome to Crypto Long & Short, our institutional newsletter. This week, we cover the evolving regulatory landscape in Asia and its impact on digital asset platforms and asset managers. A wave of new regulations across Hong Kong, Singapore, and South Korea is driving the need for stronger governance and reassessing D&O liability insurance arrangements. Regulators are refining their frameworks, increasing pressure on trading platforms and asset managers to strengthen their governance and risk management. In Hong Kong, the Securities and Futures Commission is clarifying senior management's responsibilities, emphasizing personal accountability for directors and senior management. In Singapore, new licensing requirements are focusing on the competency and fitness of key individuals. South Korea is introducing the Digital Asset Basic Act, which will formalize the digital asset market and introduce new governance structures. D&O insurance is becoming a critical component of a firm's risk management framework, protecting personal assets in the event of claims or regulatory actions. Additionally, we examine how crypto scams are increasingly targeting experienced investors, using tactics such as 'pig butchering' to build trust and trick victims into making larger deposits. These scams often start with initial contact through wrong-number texts, LinkedIn messages, or social media outreach, and then shift to encrypted apps, exploiting familiarity with legitimate infrastructure.