Cryptocurrency transfers from South Korea to Cambodia surged 1,400-fold in 2024, revealing critical weaknesses in the country's anti-money laundering framework, according to regulatory oversight data. Bithumb processed approximately 12.4 billion won ($9 million) in suspicious transactions, while Upbit handled 366 million won ($271,000). The funds were primarily sent in USDT stablecoins to Huione Guarantee, a Cambodian online marketplace sanctioned by the United States and United Kingdom.

Japan's 2023 Payment Services Act amendment restricts stablecoin issuance to banks and trust institutions, establishing a conservative regulatory regime. Experts warn the framework's exclusion of global stablecoins like USDC and its inward focus may constrain DeFi innovation compared to Hong Kong and Singapore's more open approaches.