China Spy Agency Warns Crypto Aids Espionage as Singapore Crypto Economy Jumps 55%

China's Ministry of State Security (MSS) has escalated its anti-crypto rhetoric, publicly labeling digital assets as 'accomplices' in foreign espionage. In a social media post reported by the South China Morning Post, the MSS claimed that cryptocurrencies are routinely used by 'overseas anti-China hostile forces' to launder money, launch cyberattacks, and undermine national security. The agency issued what reads as a coded warning to would-be foreign spies: blockchain transactions are far from anonymous, and Beijing is actively monitoring them. While the advisory generally holds for Bitcoin and Ethereum, it notably does not apply to privacy coins like Monero ($543.37) and Zcash, which remain fully untraceable when used correctly. China has repeatedly tightened its crypto crackdown, banning exchanges in 2017, mining in 2021, and declaring all crypto-related business illegal.

Meanwhile, Singapore has surged past its regional rivals to reclaim the top spot in Asia's crypto economy. According to Chainalysis data, crypto activity in the city-state grew 55.4% to $284 billion in the year ending June 2026, even as the broader Central, Southern Asia, and Oceania (CSAO) region contracted by 6.8%. The growth was driven almost entirely by institutional platforms, where transaction volume jumped 94% to $60 billion, concentrated among a handful of market makers, OTC desks, and brokerages. Chainalysis noted that new platform entries were limited, with the gains coming from high-volume activity at established institutional players rather than ecosystem expansion.

In South Korea, regulators are moving toward a long-anticipated policy shift. The Financial Services Commission announced it is considering legalizing crypto market makers, a category of liquidity providers that has operated in a regulatory gray area despite being essential to exchange order books. Formal recognition would bring South Korea's market structure more in line with global standards, potentially attracting more institutional capital to platforms trading assets ranging from BNB ($771.77) to Solana ($118.28) and emerging tokens like HYPE ($87.55). The move comes as Bitcoin trades at $84,809.38 and global regulators continue refining their approach to digital asset oversight across the Asia-Pacific region.