CERT-In Flags AI-Assisted Attacks as Asia’s Exchanges Tighten Security

India's Computer Emergency Response Team has designated an AI-assisted threat actor, "CRAFTY FALCON," as an active danger to cryptocurrency exchanges, warning it is stealing wallet keys and siphoning funds at what the agency calls "machine speed." The advisory, issued Wednesday, explicitly names crypto exchanges among affected businesses and says attacks are ongoing even at firms that received earlier restricted advisories and undertook remediation.

"The threat is active and ongoing. CSIRT-Fin continues to receive reports of successful attacks, including from NBFCs and fintech entities that had already received the earlier restricted advisories and had undertaken remediation," CERT-In said. The advisory names ARTEX, an AI penetration-testing tool. In October, CrowdStrike reported an unidentified attacker used ARTEX alongside Claude Code and other AI models to breach South Korean financial firms and steal data.

How is Seoul responding to the Binance breach?

South Korea's Financial Services Commission has urged domestic exchanges to increase the share of assets held in cold wallets after the $6.3 billion attack on Binance. The FSC convened an emergency meeting with regulators, cybersecurity agencies and crypto service providers, reviewing IT access controls, wallet withdrawal approval and signing procedures, and administrator privileges.

The push lands on ground already covered by law: Korean exchanges must hold at least 80% of user assets in cold storage. Upbit holds 99.17% in cold wallets, Bithumb 94.76% and Coinone 85%.

The Bank of Korea, separately, is surveying 31 financial institutions on crypto contagion risk, including one scenario in which the country's largest exchange by market share temporarily suspends operations after a major hack.

Pyongyang, meanwhile, denies involvement in the Binance theft. "The US assertion is an absurd rhetoric and nothing new," Kim Yo Jong said, after the FBI attributed the incident to a DPRK-supported hacking organization. The South Korean government has also backed delaying its crypto capital gains tax by another two years, to 2029 — the latest in a string of postponements.

What's changing in Hong Kong and Thailand?

Crypto.com will discontinue its Hong Kong consumer app on Feb. 1, 2027, while continuing to pursue regulatory approval for its institutional exchange. A spokesperson said affected customers received advance notice and will get instructions on closing accounts and support withdrawing funds. The local entity's license application, filed nearly three years ago, still sits at "deemed-to-be-licensed" — a transitional status, not full approval.

Hong Kong's own tokenization agenda is accelerating:

• Project Ensemble now supports round-the-clock settlement of tokenized transactions, with regulated stablecoin trials involving tokenized government debt planned.
• The SFC opened secondary trading of tokenized funds through licensed exchanges; two China Asset Management money-market funds now trade continuously via PantherTrade and the Futubull app.
• Animoca Brands won Abu Dhabi Global Market FSRA approval for subsidiary Animoca Asset Management (AD) Limited to manage funds for professional investors.

Thailand's SEC has filed a criminal complaint against BG Limited, operator of Bitget, for allegedly offering unlicensed crypto trading between 2022 and 2025, charging fees and promoting services in Thai. The regulator will block the exchange's website and app from December 5 and has advised users to act on their assets before the deadline.

What else is moving across the region?

Vietnam's Ministry of Finance now requires licensed exchanges to report security incidents and remediation plans within 24 hours. In Singapore, HSBC, JPMorgan's Kinexys, MUFG, Société Générale-Forge under BNP Paribas, and Standard Chartered launched the Global Layer One Organization, a non-profit promoting standards for tokenized financial markets.

Japan's yen stablecoin JPYC marked its first anniversary with roughly 3 billion yen in circulation — a quarter of its internal target. BlackRock, BlackRock Japan, SBI Holdings and Startale signed an MOU to explore connecting tokenized money-market funds with SBI's JPYSC stablecoin.

Australia's Reserve Bank raised rates 25 basis points to 4.85% — an 18-year high — in a 6–3 vote, pushing its inflation-return forecast to late 2027. Australian crypto holders also face the scrapped 50% capital gains discount from the May budget; Finder founder Fred Schebesta called the changes a "killer blow" and is relocating to Singapore, which levies 0% CGT.

Bitget users have until December 5 to act before Thailand's block takes effect; Hong Kong's stablecoin trials with tokenized government debt are the next structural milestone to watch.