- Neo’s co-founders reignited governance concerns with a public dispute over treasury control.
- Japan and South Korea signaled growing openness to crypto ETFs.
- Vietnam and Indonesia advanced stablecoin and tax reporting rules ahead of 2026.
Asia closed out 2025 with a mix of internal Crypto drama and clear regulatory momentum. From a public fallout at one of the region’s oldest blockchains to fresh signals on crypto ETFs and tighter oversight of stablecoins and taxes, the past weeks underscored how fast the market — and its governance — is changing.
Neo’s Co-Founders Take Their Dispute Public
Neo, once branded “China’s Ethereum” during the 2017 boom, ended the year under an uncomfortable spotlight. Co-founders Erik Zhang and Da Hongfei publicly accused each other of mishandling governance and treasury controls, reviving long-simmering tensions over how the project has been run.
Zhang said he stepped away from leadership years ago after being told joint oversight was slowing Neo down. He now argues that his removal weakened internal checks and allowed resources to be used in ways that conflicted with Neo’s interests. Da rejected that narrative, saying the core issue was Zhang’s delay in securing the treasury through multisignature controls — a basic safeguard for any major blockchain project.
The Neo Foundation has tried to contain the damage, saying the dispute will not affect operations and promising detailed financial disclosures in the first quarter. Still, the episode highlights how governance questions can resurface even in mature crypto networks.
Japan and Korea Warm to Crypto ETFs
While Neo’s issues were internal, regulatory signals elsewhere in Asia pointed forward. Japan’s finance minister used a New Year address to frame 2026 as a turning point for digital assets, explicitly referencing crypto ETFs as tools already gaining traction overseas.
Japan currently regulates crypto under payment and custody rules, limiting ETF eligibility. That may change as regulators prepare to reclassify crypto as a financial product under securities law. South Korea echoed the theme, with its main exchange saying it is operationally ready to list crypto ETFs and derivatives once regulators settle outstanding questions.
Hong Kong has already moved ahead, approving spot Bitcoin and Ether ETFs in 2024, offering a regional test case despite modest inflows so far.
Southeast Asia Tightens the Rules
Regulation also accelerated across Southeast Asia. Vietnam approved its first pilot allowing USDT-to-dong conversions under supervision, aligning with new crypto laws that took effect this year. The move is part of a broader effort to address concerns raised by the Financial Action Task Force after Vietnam was placed on its grey list.
Indonesia, meanwhile, is preparing to roll out the OECD’s Crypto-Asset Reporting Framework from 2027, bringing exchanges, wallets, and payment providers into automatic tax reporting.
Also Read: India Registers 49 Crypto Exchanges to Combat Fraud — What This Means for Investors
Taken together, these developments show Asia entering a more accountable phase of crypto adoption. Founder disputes like Neo’s expose governance risks, while ETF discussions, stablecoin pilots, and tax reporting rules point to deeper integration with traditional finance. For investors and builders alike, 2026 looks set to reward transparency — and punish its absence.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
