Asia's Digital Asset Regulation: A Shift Towards Personal Accountability

Welcome to Crypto Long & Short, our institutional newsletter. This week, we examine the evolving regulatory landscape in Asia and its implications for digital asset companies. A new wave of regulations in Hong Kong, Singapore, and South Korea is increasing pressure on trading platforms and asset managers to strengthen governance and reassess their Directors' and Officers' liability insurance arrangements. In recent months, these three leading digital asset hubs have announced plans to refine their regulatory frameworks, signaling a shift towards personal accountability for senior management. We also look at how crypto scams are increasingly targeting experienced investors by building trust and tricking them into making larger deposits until their money is gone. A special agent from the Tennessee Bureau of Investigation shares a case study of a retired trader who was scammed, highlighting the tactics used by scammers to exploit their victims. The article also discusses the importance of Directors' and Officers' insurance in protecting senior management from personal liability and the need for firms to proactively review their governance structures, custody arrangements, and insurance programs to ensure they are adequately protected against emerging liabilities.