US Bans DeepSeek as Asia Crypto Links and Stablecoin Tests Advance

The US Department of Homeland Security has ordered federal civilian agencies to remove DeepSeek products from their IT systems. The directive also covers DeepSeek affiliates and third-party products and services built using its implementations, while prohibiting agencies from making new purchases. DHS said use by government employees and contractors could expose sensitive information to China, including details about US citizens and federal programs.

Washington is also considering tighter controls on outbound technology investments. Treasury proposed rules implementing the COINS Act from December 2025 and expanding the Outbound Investment Security Program launched in January 2025. The measures would restrict certain AI, “superintelligence” and high-risk semiconductor investments in countries including China, Russia, Iran, North Korea and Cuba. Treasury also announced its first $200,000 penalty against Amidi, LLC for failing to report an investment by its Chinese subsidiary in embodied-AI and robotics company Shanghai Qiongche Intelligent Technology, also known as Noematrix.

Asia’s crypto sector is navigating a separate mix of regulatory scrutiny and rapid growth. Solana Foundation president Lily Liu said the Solana Accelerate event in Shanghai was postponed after preregistration quadrupled overnight and exceeded the cap set by local authorities. Organizers cited compliance with local requirements, while Binance founder Changpeng Zhao said Solana’s ability to open a Shanghai office contrasted with BNB Chain’s experience. The report also highlights Switzerland’s crypto-technology partnership with Vietnam and a Singapore-based firm linked to Europe’s spot Bitcoin ETF market.

In Japan, Shinhan Card has signed an agreement with SBI VC Trade and SBI XDC Network APAC to test yen stablecoins for tourist spending between Japan and South Korea. The partnership positions stablecoins as a potential cross-border payments tool, while the DeepSeek restrictions and proposed US investment rules underscore the growing intersection of AI, national security and financial technology.