South Korea plans to sign new regulations for its artificial intelligence sector in January, with the AI Framework Act expected to take effect on January 22, 2026. According to industry sources, the framework will establish a national AI committee, mandate a three-year plan, and impose safety, transparency, and disclosure rules, including watermarking. A survey reported that 98% of 101 local AI firms lack compliance systems.

On December 14, 2025, Pakistan's finance ministry announced an MoU with Binance to advise on tokenizing up to $2 billion in state-owned assets. The non-binding pact envisions six months to finalize definitive agreements and is subject to regulatory approvals. Pakistan also granted No Objection Certificates to Binance and HTX to begin local licensing and AML registration.

On December 13 2025, the Surat sub-zonal office of India's Enforcement Directorate in Ahmedabad filed a charge sheet under the Prevention of Money Laundering Act against five people linked to cybercrime and fraud totaling Rs. 104.15 crore (about $11 million). Authorities allege the group ran online investment and digital asset scams, funneled funds through mule accounts and crypto wallets, and used fake official notices, while police have urged residents to exercise caution when sharing data or engaging with online investment offers.

South Korea's Financial Services Commission is developing provisions requiring cryptocurrency exchanges to compensate users for losses from security incidents or system failures, regardless of fault. The proposal follows a November 27 breach at Upbit that resulted in approximately $30.1 million in stolen digital assets. The no-fault compensation framework would mirror obligations currently imposed on traditional financial institutions under existing financial transaction laws.

Pakistan has lost more than $600 million through unauthorized cryptocurrency transactions, according to the Exchange Companies Association of Pakistan. Residents are converting local currency to dollars via exchange firms, then moving funds into digital assets through unregulated channels. The outflows have reduced dollar inflows to the formal banking system, with sales from exchange companies to banks dropping from approximately $4 billion to $3 billion year-over-year.

Major South Korean cryptocurrency exchanges are experiencing financial strain as trading volumes decline amid a broader market downturn. Dunamu reported operating profits of 235.3 billion won ($161.7 million) in the third quarter, reflecting a 180% year-over-year increase, while Bithumb recorded operating profits of 70.1 billion won, an eightfold rise. Industry officials warn that heavy reliance on trading fees exposes platforms to market volatility.

Romania's National Office for Gambling has blacklisted prediction platform Polymarket for conducting betting operations without proper authorization. The regulator stated that cryptocurrency-based wagering constitutes gambling activity requiring licensing, regardless of underlying blockchain technology. Polymarket faces regulatory scrutiny in multiple jurisdictions, including France and the United States.