Welcome back to Continuum Risk Update
Every Friday we pull the top Asia headlines on digital-asset regulation, cyber risk, industry moves and insurance signals, with concise takeaways and practical actions for insurers and corporate risk teams.
1) Regulatory
Hong Kong to issue its first stablecoin licenses next month
Hong Kong’s 2026–27 budget speech included the imminent rollout of stablecoin issuer licenses, underscoring the city’s ambition to be a leading regulated digital asset hub in Asia. New rules will help define compliant stablecoin issuance and enhance governance standards
Thailand files criminal charges against unlicensed exchange Bitazza — Thailand’s Securities and Exchange Commission filed criminal complaints against Bitazza and its executives for operating an unlicensed digital asset exchange, and issued investor alerts about blocking access to the platform starting March 22, 2026.
2) Hacking & Physical Risks
Step Finance shuts down after ~$40M exploit
Step Finance, a Solana-based protocol, announced closure after failing to recover from a late-January exploit that drained ~$40 M from treasury and fee wallets, underscoring deep vulnerabilities in DeFi infrastructure and liquidity management.
Asia’s cyber insurance market poised for explosive growth
CyberCube insights highlight that heightened vulnerability awareness and high-profile digital incidents are accelerating cyber insurance adoption across Asia, with premiums and uptake expected to surge.
3) Industry & Markets
Digital assets’ next phase: infrastructure before regulation
A February 21 article emphasized that digital asset infrastructure development must precede regulation for stable growth, with investors, institutions, and policymakers converging around this agenda.
2026 Asia stablecoin market overview shows USD dominance
Asia’s stablecoin market has expanded but remains overwhelmingly dominated by USD-pegged assets, even as regional players prepare frameworks for adoption.
4) Insurance Spotlight
Asia’s cyber insurance landscape is transforming — Heightened digital vulnerability awareness — driven by breaches and hacks — is moving cyber insurance from a niche to a core product for Asian corporates and financial firms.
Continued focus on compliance and cyber risk governance
Ongoing Asia-Pacific regulatory and supervisory emphasis on digital resilience and governance (e.g., reporting, documentation, accountability) underlines rising compliance complexity for financial firms.
