US orders DeepSeek removed from federal civilian agency systems as Asia crypto ties deepen

US orders DeepSeek removed from federal civilian agency systems

The US Department of Homeland Security has ordered DeepSeek products removed from the IT systems of federal civilian agencies, according to a filing published on Monday. The order also covers DeepSeek affiliates and third-party products and services built using DeepSeek technology, and it stops affected agencies from making new purchases.

DHS warned that government employees and contractors using DeepSeek could expose sensitive information to China, including details about US citizens and federal programs. DeepSeek is an AI company, and the order treats its tools as a security risk rather than a normal software purchase.

The same week brought several other developments across Asia, from a postponed Solana event in Shanghai to a Swiss-approved Bitcoin ETF and new stablecoin tests between Japan and South Korea.

Key points

• DHS ordered DeepSeek removed from federal civilian agency systems and banned new purchases of its products.


• Solana's Shanghai conference was postponed after pre-registration went past the limit set by local authorities.


• A South Korean card company and two SBI units in Japan will test yen stablecoin payments for travellers and trade.


• Super League shareholders approved a deal giving Japan's Metaplanet a 93.7% stake.


• A Singapore-backed manager received Swiss approval for the country's first spot Bitcoin ETF.

What the Homeland Security filing says

The filing was published on Monday. It covers DeepSeek products, DeepSeek affiliates, and third-party products and services developed using DeepSeek implementations. Agencies affected by the order are also barred from making new purchases.

The stated reason is data exposure. DHS said use of DeepSeek by government employees and contractors could reveal sensitive information to China, potentially including details about US citizens and federal programs.

Treasury proposes wider limits on AI and chip investment

The US Treasury has proposed rules that would block investment in artificial intelligence projects and certain high-risk semiconductors in some foreign countries. The restrictions are mainly aimed at China but would also cover Russia, Iran, North Korea and Cuba.

The rules would put into practice the COINS Act from December 2025 and expand the Outbound Investment Security Program, which took effect in January 2025. They build on earlier limits on selling high-powered AI chips to China.

Treasury also announced its first $200,000 penalty this month against Amidi, LLC. The company was penalised for failing to report an investment by its Chinese subsidiary into Shanghai Qiongche Intelligent Technology, an embodied AI and robotics company also known as Noematrix.

Solana's Shanghai event postponed after sign-ups surge

The Solana Accelerate event in Shanghai was postponed after pre-registration exceeded the event cap set by local authorities, according to Lily Liu, president of the Solana Foundation. Liu wrote in a Friday post on X that registration quadrupled overnight after publicity for the event, and that organisers postponed it to "comply with local requirements."

Earlier on Friday, X users claimed the event was "abruptly suspended" and said law enforcement officers were stationed at the venue. Those claims have not been confirmed.

Binance founder Changpeng Zhao posted that he was impressed the Solana Foundation had been allowed to open a Shanghai office, noting that BNB Chain had not been able to do so.

Japan and South Korea test yen stablecoin payments

South Korea's Shinhan Card signed an agreement on Tuesday with Japan's SBI VC Trade and SBI XDC Network APAC to test yen stablecoin payments. A stablecoin is a digital token designed to hold a steady value, usually by being tied to a traditional currency.

The companies will test stablecoin card payments, wallet-to-wallet payments and cross-border trade settlement. They will also assess controls for anti-money-laundering and fraud detection. Shinhan Card is one of South Korea's largest credit card companies, while SBI runs banks, brokerages, insurers and crypto exchanges in Japan.

Metaplanet moves toward a US listing through Super League

Shareholders of Super League, a Nasdaq-listed gaming and digital media company, approved a deal that would give Japanese Bitcoin treasury firm Metaplanet a 93.7% ownership stake. The company described the deal as a 2,100 BTC transaction that would let it expand into US capital markets through a publicly traded Bitcoin treasury company.

Metaplanet also announced a planned repurchase of about $160 million of its own shares.

South Korea holds tax talks as a delay bill is filed

South Korean finance officials reportedly met major crypto exchanges this week, days after a lawmaker introduced legislation that could push the start of a new crypto tax back two years. The meeting was described as a consultation on crypto taxation, with representatives from Upbit, Bithumb, Coinone, DigitalX and Gopax, plus executives of the Digital Asset Exchange Alliance, known as DAXA.

Regulators in the country have delayed the crypto tax three times, with the latest delay moving the start date to 2027 amid political disagreement and industry pushback.

Separately, blockchain network Injective signed a memorandum of understanding with South Korean digital asset custodian BDACS to bring a won-backed stablecoin to its tokenised asset markets. Kakao, KakaoBank and KakaoPay also formed a stablecoin task force to build infrastructure for won stablecoin issuance, custody and payments, starting with shopping and gifting.

Tokenised bonds, a Thai acquisition and a Swiss bitcoin ETF

Malaysia's central bank, Bank Negara Malaysia, launched a distributed ledger-based platform for issuing and holding tokenised bonds. A distributed ledger is a shared record of transactions kept across many computers. The central bank said its next-generation Scripless Securities Depository System supports issuance, depository and safekeeping of tokenised debt securities, including Islamic bonds known as sukuk, and connects digital securities records with an around-the-clock payment system.

Crypto exchange Bitget announced plans to acquire Thailand's GMO-Z.com Cryptonomics, weeks after a major hack affecting its hot and warm wallets. The proposed transaction involves BTGT Management (Thailand), a company in which Bitget says it holds an interest, and would let Bitget bring its trading platform to Thai users. The hack figure was reported as $388 million.

In Bangkok, Thai police arrested a 37-year-old Chinese man wanted by authorities in China over alleged involvement in an international crime network and money laundering. Investigators said the network handled more than 500 million yuan ($75 million) in transactions, according to Thai media Khaosod English. Police alleged he handled cryptocurrency and foreign-currency exchanges for criminal groups across more than 133 accounts.

In Vietnam, the city of Da Nang is using a controlled sandbox that lets businesses use crypto-related applications in tourism. Da Nang welcomed 15.9 million visitors in the first nine months of 2026. Vietnam also signed a free-trade agreement with the European Free Trade Association countries of Switzerland, Iceland, Norway and Liechtenstein. After meeting the Vietnamese prime minister, Swiss President Guy Parmelin proposed linking Switzerland's Crypto Valley hub with Vietnam's innovation ecosystem to deepen cooperation in blockchain, AI and quantum technology.

Singapore Gulf Bank, which the source notes is licensed by Bahrain, said retail customers can convert between dollars and USDT or USDC through its mobile banking app. The Singapore-backed BIT Asset Management, formerly known as Matrixport, had its Zurich arm approved by the Swiss Financial Market Supervisory Authority to launch Switzerland's first spot Bitcoin ETF. A spot Bitcoin ETF is a fund that holds Bitcoin and trades on a stock exchange. The source describes the fund both as Switzerland's first and as Europe's only spot Bitcoin ETF.

What is confirmed and what is not

Confirmed by official or primary material: the DHS order and its filing date, the Treasury proposals and the Amidi penalty, the Shinhan Card agreement, the Super League shareholder approval, the Malaysian central bank platform, the Swiss approval for the Bitcoin ETF, and the Vietnam-EFTA free-trade agreement.

Reported but not officially confirmed: the meeting between South Korean finance officials and exchanges, and the details of the Bangkok arrest as described by Thai media.

Unconfirmed: claims by X users that the Shanghai Solana event was suspended by law enforcement at the venue. The stated reason for the postponement came from the Solana Foundation president.

Why these developments matter

The DeepSeek order shows US agencies treating foreign AI tools as a data-security risk, not just a software choice. The Treasury proposals extend similar limits to money flows into AI and chip projects. In Asia, the stablecoin tests, tokenised bond platform and won-backed stablecoin plans show institutions building settlement systems that do not rely only on US dollar stablecoins, while the Swiss ETF approval adds another regulated way to hold Bitcoin.

Sources

• Cointelegraph — New DeepSeek ban in US, Swiss-Asia crypto ties deepen: Asia Express