Crypto News Asia: India To Launch Rupee-Backed Stablecoin, Japan Rewrites Crypto Tax Rules, South Korea’s Upbit Sold To Naver

In today’s rendition of our weekly crypto Asia news bulletin, we discuss key developments in the crypto Asian landscape with special emphasis on developments in India, Japan, and South Korea that could have a major global impact.

Here are the biggest headlines from this week.

Crypto News Asia: India To Debut Its Rupee-Backed Stablecoin In Q1 2026

India is preparing to launch its very own Rupee-backed stablecoin sometime in Q1 2026. Polygon, an Ethereum infra company, and Anq, an Indian fintech company, are developing the token, called the Asset Reserve Certificate (ARC).

Issuers will back each ARC token 1:1 with the Indian Rupee, ensuring transparency and security. Further, it will work in tandem with the Reserve Bank of India’s (RBI) CBDC.

RBI’s CBDC aims to handle final settlements with the protection of India’s monetary system in mind. On the other hand, ARC serves as a private-sector layer that supports smart payments, programmable transactions, and remittances.

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Furthermore, ARC will follow India’s partial currency convertibility rules. While the Rupee can be freely used for trade and business, it can not be used for unrestricted investments abroad.

Only Business accounts will mint ARC tokens and will have to maintain compliance with India’s foreign exchange laws. To prevent misuse, ARC will use Uniswap v4’s tech to make sure tokens can only be swapped by approved users.

The goal of the stablecoin is to keep money and innovation inside India’s economy rather than letting it flow into dollar-backed stablecoins.

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India Uncovers $62M Crypto Laundering Network Across 27 Exchanges

The Indian Ministry of Home Affairs (MHA) has uncovered what could be the country’s largest crypto money laundering case involving around ₹623 crore (approx. $62 million) across 27 crypto exchanges.

According to a local publication, investigators on this case believe Chinese-controlled entities to be behind this scam. They use fake loan apps to extort money from Indian citizens and then convert those funds to crypto before moving them abroad.

Crypto exchanges such as Coin DCX, WazirX, Giottus, ZebPay, Mudrex, and CoinSwitch have been flagged by the MHA as channels used by cyber criminals to launder money.

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The scam involved hawala-style transactions, shell companies, and cross-border transfers, which the Enforcement Directorate (ED) and the Delhi Police are investigating at the moment.

Additionally, authorities found that several exchanges failed to properly conduct KYC (Know Your Customer) procedures, which allowed suspicious activities to go unchecked.

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Japan Slashes Crypto Tax To 20%, Classifies Bitcoin As A Financial Product

Japan’s Financial Services Agency (FSA) has trained its eyes on a major regulatory reimagination. It plans to reclassify 105 cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), as financial products under the Financial Instruments and Exchange Act (FIEA).

Meaning, major exchanges will need to follow stricter rules, similar to government securities, including detailed disclosures about each token, reporting requirements, and market surveillance.

Also, for the first time, insider trading rules will apply to cryptocurrency in the same way they apply to traditional finance, like stocks or bonds.

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In addition to this reclassification, the country is pushing to slash its crypto tax from a high of 55% to a flat 20%. As of right now, Japan treats crypto profits as “miscellaneous income,” which can heavily burden high-earning traders.

The new taxation structure will apply to both individuals and institutions.

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South Korea’s Largest Exchange Sold To Naver

South Korean tech giant Naver is reportedly acquiring Dunamu, the parent firm of Upbit, through a stock swap deal managed by Naver Financial. This brings together the country’s largest tech firm and the largest exchange in a bid to change the financial landscape in the country.

During an upcoming board meeting, both companies will finalize the deal and confirm the transaction. Once complete, Naver will integrate Dunamu’s crypto expertise with its own digital payments, which already processes nearly ₩80 trillion (about $58 billion) annually.

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Looking beyond this acquisition, Naver and Dunamu plan to launch a Won-backed stablecoin to position themselves as leaders in the South Korean fintech space.

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The post Crypto News Asia: India To Launch Rupee-Backed Stablecoin, Japan Rewrites Crypto Tax Rules, South Korea’s Upbit Sold To Naver appeared first on 99Bitcoins.

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