Vietnam threatens $1,900 fines for retail crypto traders on Binance, OKX and Bybit as Japan moves crypto into securities law

Asia’s crypto rulebook just got a little less theoretical. Vietnam is preparing fines for retail users who trade on unlicensed overseas platforms, while Japan has reclassified cryptocurrencies as financial assets and moved them under the Financial Instruments and Exchange Act — which matters for anyone selling, acquiring, or risk-scoring crypto flows in the region.

1. Vietnam will fine retail crypto users up to $1,900 if they trade on unlicensed overseas platforms such as Binance, OKX and Bybit instead of licensed local exchanges. The catch is that Vietnam’s Finance Ministry has not yet issued any exchange licenses for the regulated digital asset market, which is due to start on September 1, although five exchanges have been approved in principle.
2. Domestic investors who trade crypto that has been designated exclusively for foreign investors can be fined up to $3,800. Crypto companies face up to $7,600 in fines if they provide or advertise services without a license, fail to properly identify customers, or unlawfully deal with crypto account data.
3. In Malaysia, Balaji Srinivasan’s Network School in Forest City is facing scrutiny after allegations that it has been hosting Israeli citizens using second passports. The claims came from the activist group Malaysia Protest 4 Palestine, which accused the school of becoming a “gathering place for Israeli entrepreneurs.”
4. Malaysia has no diplomatic relations with Israel and bans Israeli citizens from visiting, but dual nationals with Israeli passports are allowed for now. The Immigration Department said its investigation found that the 266 foreigners have valid documents, while the Johor state government is continuing a probe into business licenses, building usage and commercial operations.
5. Japan’s parliament has passed revisions to the Financial Instruments and Exchange Act, reclassifying cryptocurrencies as financial assets and moving them out of the Payment Services Act. Unlicensed crypto platforms now face a fine of 10 million yen or 10 years in jail, and there is a new ban on insider trading in crypto, to be policed by the Securities and Exchange Surveillance Commission.

Japan’s tax treatment is also changing: current crypto tax rates of up to 55% will be reduced to approximately 20%, with a three-year carry forward provision for losses. But the new tax rules do not take effect until 2028, so there is no immediate relief for anyone pricing payment flows around the current regime.