Novermber 2025
Hong Kong SFC Opens a New Chapter in Virtual Asset Regulation
Key Point：On Nov 3, 2025, Hong Kong’s SFC issued two key circulars reshaping the virtual asset landscape:

  • Broader Products & Services — Token listing rules eased, tokenized securities and off-platform custody now allowed.
  • Shared Liquidity — Licensed exchanges can connect with overseas affiliates under new DvP and surveillance rules.

Full details here via Anue: https://hao.cnyes.com/post/204473

LYODS INSIGHTS:

  1. More Products, More Risks: New tokens and custody options = new fund flow risks. AML systems must adapt fast.
  2. Cross-Border Liquidity = Cross-Border Compliance: Overseas links demand real-time monitoring and alignment with global AML standards.
  3. Custody Expansion Needs Stronger KYC/CDD: Off-platform assets require deeper checks on asset source and ownership.
  4. Innovation Meets Oversight: SFC’s approach encourages growth but demands precision in AML/CFT controls.

Next stop — RWA, DeFi, and CBDC: Compliance must stay flexible, data-driven, and ready for the next wave of regulation.

Prince Group Suspected of Large-Scale Money Laundering in Taiwan
Key Point：Taiwan prosecutors have uncovered a major money-laundering network linked to Cambodia’s Prince Group, founded by Chen Zhi.

  • 47 locations searched, with NT$4.5B (US$140M) in assets seized.
  • Includes luxury real estate, cars, and bank accounts.
  • Violations of Money Laundering Control Act and Organized Crime Prevention Act.

Taiwan’s Ministry of the Interior is now cooperating with U.S. authorities to trace local accomplices.
Full details here via Yahoo Taiwan: https://news.pts.org.tw/article/779821

LYODS INSIGHTS: Lyods interprets this case as a clear signal that next-generation AML systems must go beyond traditional banking flows by:

  • Integrating crypto-wallet intelligence to track digital asset movements
  • Linking corporate-registry data to identify shell companies and hidden ownership
  • Connecting sanctions databases for early detection of high-risk entities
  • Uncovering hidden laundering layers early through cross-data correlation
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Canada’s AML & Crypto Landscape: Enforcement, Agencies, and Stablecoin Growth
1. Cryptomus Fined $177M for AML Breaches
Key Points:

  • FINTRAC imposed a record $177M fine on cryptocurrency exchange Cryptomus.
  • Failures included unreported suspicious transactions, insufficient KYC/CDD, and other core AML lapses.
  • Signifies serious regulatory scrutiny for digital asset firms.

Full details here via BNN Bloomberg: https://www.bnnbloomberg.ca/business/2025/10/22/cryptocurrency-exchange-cryptomus-fined-record-177m-by-fintrac/

LYODS INSIGHTS: AML enforcement in crypto is evolving rapidly; baseline compliance is no longer enough. Firms must implement real-time transaction monitoring, ongoing customer risk profiling, and transparent governance. Our solutions support adaptive blockchain analytics, automated reporting, and predictive risk alerts, ensuring proactive compliance.
2. Canada to Launch New Financial Crimes Agency
Key Points:

  • Planned Financial Crimes Agency to launch by Spring 2026, centralizing AML, organized crime, and online fraud investigations.
  • Expanded powers for FINTRAC, enhanced data sharing, and voluntary Code of Conduct with banks and fintech.
  • Special focus on emerging threats from crypto-assets and stablecoins.

Full details here via Reuters : https://www.reuters.com/world/canada-launch-new-agency-fight-financial-crime-2025-10-20/

LYODS INSIGHTS: Centralized oversight enables better coordination and enhanced scrutiny. Businesses should strengthen governance, real-time monitoring, and leverage advanced blockchain analytics, and proactive alignment with regulators is needed to ensure trust, compliance, and secure innovation in Canada’s financial ecosystem.
3. Canadian Stablecoins Advance Amid Regulatory Calls
Key Points:

  • Growth of Canadian-dollar–pegged stablecoins amid unclear regulatory framework.
  • Officials urge clear rules to prevent capital outflows and support secure adoption.
  • Flexibility-focused approach contrasts with stricter U.S. regulations.

Full details here via MoneySense: https://www.moneysense.ca/save/investing/crypto/canadian-stablecoins-push-ahead-amid-growing-regulatory-calls/

LYODS INSIGHTS: Stablecoins introduce unique AML risks, including cross-border laundering and market destabilization. Firms must deploy real-time blockchain analytics, scenario-based risk assessments, and robust KYC/CDD. Solutions integrating AI-driven anomaly detection and cross-sector data sharing are critical for safe and compliant stablecoin ecosystems.
Canada is rapidly strengthening its AML and financial crime frameworks, signaling heightened scrutiny for crypto firms, new centralized enforcement, and the rise of regulated stablecoins.
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Japan’s Mega Banks Unite for a Joint Stablecoin Project
Key Point：Japan’s Financial Services Agency (FSA) has launched the Payment Innovation Project (PIP), approving a joint stablecoin pilot by the country’s three mega banks — Mizuho, MUFG, and SMBC.

  • First-ever multi-bank stablecoin issued under one brand.
  • Uses a trust-type stablecoin framework via Progmat platform.
  • ¥1M transfer limit removed, enabling large-scale corporate settlements.

Will issue yen- and foreign-currency stablecoins for global use, starting with Mitsubishi Corp.
Full details here via: CoinPost : https://coinpost.jp/?p=664260

LYODS INSIGHTS: For global corporates and financial institutions, this marks a major shift toward unified digital payment rails. A shared infrastructure will become a powerful platform for business. At Lyodstech, we are ready. Our secure, enterprise-grade blockchain and compliance expertise aligns with the new trust-type stablecoin framework. We help clients:

  • Integrate the standardized stablecoin API into treasury and ERP systems
  • Build compliant apps and wallets for supply chain and global payments
  • Ensure full regulatory adherence for this new class of digital instruments

This is the foundation of Japan’s next-generation financial infrastructure—and Lyodstech is ready to guide you through this transformation.

Prince Group Suspected of Large-Scale Money Laundering in Taiwan
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