Author: Bob Ai

India has moved to shut down global prediction market platforms from within its borders, with Polymarket — the world’s largest decentralized prediction market — becoming inaccessible for Indian users this week. The enforcement marks a significant escalation in India’s approach to regulating cross-border online prediction and betting platforms, and sends ripple signals across the Asian fintech and crypto landscape.

The outage follows a directive issued on April 25 by India’s Ministry of Electronics and Information Technology (MeitY) to local VPN service providers. The ministry warned that Indian users were continuing to access “illegal and blocked prediction market and online betting platforms” despite existing domestic prohibitions, and directed internet service providers to terminate access to these platforms. Polymarket was among the primary targets.

CoinDesk first reported that Polymarket’s website now returns a “This site can’t be reached” error for users attempting to access it from India. Refreshing the page does not resolve the connection issue, confirming that the blocking is actively enforced at the network level rather than an isolated service disruption.

While Polymarket — a platform built on US-based blockchain infrastructure that allows users to bet on real-world outcomes from elections and geopolitics to sports and economics — is now blocked, another major player, Kalshi, remains accessible in India for now. However, reports from local media citing anonymous MeitY sources claim the ministry has “already issued a blocking order to Polymarket and are in the process of issuing an order to Kalshi as soon as Friday.”

Kalshi holds a notable distinction: unlike Polymarket, it is regulated by the U.S. Commodity Futures Trading Commission (CFTC) and operates with compliance frameworks that would typically make it a model for regulatory engagement. The prospect of Kalshi also being blocked — even with its regulatory credentials intact — suggests India’s approach extends beyond unregistered platforms to all prediction market operators, regardless of where they hold licenses.

The timing is significant for Asian regulatory dynamics. India’s massive digital economy — with hundreds of millions of smartphone users engaged in both traditional online betting and emerging crypto-adjacent activities — makes it a critical battleground for platform operations. Several other ASEAN nations, including Singapore and Malaysia, have been actively debating how to regulate prediction markets and binary outcome trading, and India’s hard-line approach will likely factor into those deliberations.

Singapore’s Monetary Authority (MAS) has taken a principles-based regulatory stance on AI applications in financial services, which extends to novel trading instruments. Malaysia’s Securities Commission has explored regulating “betting exchanges” under securities law. Thailand has been developing frameworks for digital asset service providers. India’s blocking of Polymarket signals that at least one major South and Southeast Asian jurisdiction is willing to deploy coercive technical measures rather than engage in negotiated regulatory frameworks.

The broader implications are far-reaching for cross-border fintech regulation in the region. If Kalshi is also blocked, it would demonstrate that India’s prohibition applies broadly to prediction markets regardless of jurisdiction, regulatory status, or compliance posture. For the platforms involved, this creates an uncertain operating environment across the region, where one nation’s enforcement action can signal to others to follow suit.

CoinDesk reached out to both Polymarket and Kalshi for comment at the time of reporting. As of this writing, neither platform has issued a public statement regarding the Indian blocking. The situation is developing rapidly, and the Kalshi blocking order — reportedly imminent as of the original report — could further reshape the regional outlook for prediction market regulation.

Indonesia has pitched a bold plan to host a regional ASEAN oil storage hub as a buffer against Middle East energy supply shocks, but the proposal has encountered immediate headwinds: deep-seated political distrust within the bloc, divergent national priorities, and ASEAN’s long track record of shelving collective emergency mechanisms.

The proposal, introduced by Indonesian Energy Minister Bahlil Lahadalia at the 48th ASEAN Summit in Cebu on May 11, calls for pooling emergency fuel reserves at a single facility on Sumatra, with Malaysia, Brunei and the Philippines as partners. The timing coincides with the US-Israel military campaign against Iran, which has disrupted tanker traffic through the Strait of Hormuz — cutting off roughly one-fifth of global oil and gas supplies bound for Asia.

Sumatra sits astride the Strait of Malacca, where more than a quarter of globally traded goods and up to 40% of the world’s seaborne crude pass. From a geographic standpoint, Indonesia’s candidacy is strong.

Yet political reality is murkier. Joshua Kurlantzick, senior fellow at the Council on Foreign Relations, noted that while cross-border energy cooperation works elsewhere — citing France’s arrangements with Italy and Germany, and strategic reserves maintained by Japan and South Korea on behalf of allies like New Zealand — ASEAN lacks the unity to replicate such models. The bloc’s ASEAN Petroleum Security Agreement, expanded last October to cover LNG, has never been triggered — not even during the current crisis.

ASEAN’s other dormant facility, the Chiang Mai Initiative born from the 1997 Asian financial crisis, has similarly never been activated. The stigma of IMF bailouts imposed on Thailand and Indonesia never fully dissipated.

Where might the hub instead go? Kurlantzick pointed to Malaysia, which emerged from its ASEAN chairmanship with heightened credibility. Energy expert Elbinsar Purba of ISEAS made a case for Singapore, which already commands world-class storage, refining, financial services and legal certainty.

But convincing eleven ASEAN governments to cede sovereignty over oil remains daunting. Ramkishen S. Rajan of NUS noted that energy security is easy to endorse in principle; the harder questions involve contribution obligations, release conditions, shortage priorities and whether those follow pre-agreed rules or real-time political bargaining.

ASEAN energy leaders say it’s time to move beyond declarations, but meaningful progress on a capital-intensive oil hub remains years away. Indonesia is pressing ahead with its own Sumatran facility regardless. The question is whether Jakarta can build the regional consensus needed, or whether the proposal will linger in principle alone.

OpenAI has announced a major partnership with the Singapore government to establish its first Applied AI Lab outside the United States, committing over S$300 million (approximately US$218 million) as part of a new initiative called OpenAI for Singapore.

Announced at the ATx Summit, the partnership was formalized with the Ministry of Digital Development and Information and aligns with Singapore’s National AI Strategy. The programme focuses on three core objectives: helping organizations adopt advanced AI technologies, building local AI talent, and widening access to AI tools across the economy.

The new Applied AI Lab will create more than 200 technical roles in Singapore over the coming years. Singapore will also serve as one of OpenAI’s global hubs for its Forward-Deployed Engineers, who work directly with companies to apply AI to real-world business and operational challenges.

The lab will support projects aligned with Singapore’s AI Mission priorities, including public service, finance, healthcare, and digital infrastructure. Denise Dresser, Chief Revenue Officer at OpenAI, said: “We’re excited to partner with Singapore as it builds on its position as a global leader in AI. Singapore has strong technical talent, trusted institutions, and a clear ambition to use AI to drive long-term growth and improve people’s lives.”

Beyond the lab itself, the initiative includes educational programmes developed in partnership with Singapore’s Ministry of Education and GovTech, focusing on AI-enabled learning tools including support for Mother Tongue language learning. OpenAI will also support educators through a Singapore chapter of the OpenAI Academy and Codex for Teachers hackathons.

The company plans to launch a Forward-Deployed Engineer training programme and participate in the National AI Impact Programme, using its Codex language model to deepen AI capabilities across Singapore’s technology workforce. OpenAI will also explore accelerator programmes for AI-native startups and workshops for micro-entrepreneurs and small businesses.

This marks a significant development in cross-border AI regulation and governance, as Singapore positions itself as the primary Southeast Asian hub for frontier AI research and deployment. The move follows increased regulatory scrutiny of AI applications in the banking and financial services sectors across ASEAN, including MAS’s principles-based approach to AI in financial services.

The partnership comes at a time when competing jurisdictions are racing to attract leading AI companies while establishing regulatory frameworks that balance innovation with consumer protection. Singapore’s government-backed model, combining substantial financial commitment with clear regulatory pathways, may prove influential in shaping how other ASEAN nations approach frontier AI governance.

Thailand has granted its first virtual bank operating licence to the Clicx bank consortium, paving the way for the country’s first digital-only banking institution under the Bank of Thailand’s newly adopted virtual banking framework.

According to Fintech News Singapore, the Bank of Thailand granted the licence on 14 May 2026, making Clicx the first approved virtual bank applicant in the country to secure an operating licence. The finance minister also approved commercial banking and regulated payment services for the entity, which is backed by Krungthai Bank, Advanced Info Service (AIS), and PTT Oil and Retail Business (the “OR” unit of the state-owned PTT Group) in a consortium that brings together banking, telecommunications, and energy retail expertise.

Clicx plans to serve underserved customers with irregular income or limited traditional financial records, including gig workers, small merchants, new workers, and other financially excluded segments. The bank will rely on artificial intelligence and non-traditional data sources to assess customer creditworthiness, incorporating data linked to everyday behaviour and service usage. This marks a significant departure from conventional collateral-based lending models that have long excluded large swathes of the Thai population from formal financial services.

Thailand approved three virtual bank applications in June 2025: the ACM Holding consortium, the Krungthai-AIS-OR consortium, and the SCB X-WEBANK-KakaoBank consortium. The regulator has allowed additional time for setup beyond the original one-year timeline, with Bank of Thailand Governor Vitai Ratanakorn indicating that at least two virtual banks should begin operations by the end of 2026. Clicx plans to launch services next month. Its approval marks a decisive progression in Thailand’s ambition to deepen financial inclusion through digital banking innovation, while establishing key precedents for AI-driven underwriting and alternative credit scoring in Southeast Asia.

Indonesia Urges ASEAN to Seal Digital Trade Deal Amid Rising Protectionism

By Asian Legal Review Staff | May 20, 2026

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has urged Southeast Asian nations to fast-track the completion of the ASEAN Digital Economy Framework Agreement (DEFA), calling the landmark regional pact critical to sustaining growth amid global economic uncertainty, geopolitical tensions and rising protectionism.

Speaking before business leaders during the Indonesia-Philippines business forum held in Lapu-Lapu City on May 7, 2026, Hartarto stressed that ASEAN must move quickly to finalize the agreement during the Philippines’ leadership of the regional bloc, warning that prolonged negotiations could delay opportunities in one of the fastest-growing sectors of the economy. “The whole world is looking at DEFA,” Hartarto said, noting that negotiations have already gone through around 20 rounds since discussions began under Indonesia’s ASEAN chairmanship in 2023. “We don’t need perfection, but we need to move on.”

The proposed agreement aims to establish a common framework for digital trade, electronic commerce, digital payments, data governance and other areas of the digital economy across the 10-member ASEAN bloc. Analysts say the deal could help harmonize digital regulations across Southeast Asia, lower business costs and accelerate cross-border investments, particularly in fintech, e-commerce, cloud computing and digital infrastructure. Hartarto described DEFA as the region’s response to growing economic risks including energy price volatility, food security concerns and global trade tensions. “This is the economy of the younger generation. This is the economy that is not prone to tariff war,” he said.

The Indonesian minister also revealed that Jakarta had already resolved its issues related to the agreement and called on other ASEAN members to compromise to complete negotiations. “We can always evaluate implementation for every country,” he said, adding that no single nation should dictate how others implement digital policies. Beyond digital cooperation, Hartarto pushed for stronger collaboration between Indonesia and the Philippines in nickel processing, special economic zones, agriculture and fertilizer supply as both nations seek to strengthen regional supply chains.

Source: SunStar Publishing Inc., “Indonesia urges ASEAN to seal digital trade deal” (May 19, 2026).

Indonesia Urges ASEAN to Seal Digital Trade Deal Amid Rising Protectionism

By Asian Legal Review Staff | May 20, 2026

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has urged Southeast Asian nations to fast-track the completion of the ASEAN Digital Economy Framework Agreement (DEFA), calling the landmark regional pact critical to sustaining growth amid global economic uncertainty, geopolitical tensions and rising protectionism.

Speaking before business leaders during the Indonesia-Philippines business forum held in Lapu-Lapu City on May 7, 2026, Hartarto stressed that ASEAN must move quickly to finalize the agreement during the Philippines’ leadership of the regional bloc, warning that prolonged negotiations could delay opportunities in one of the fastest-growing sectors of the economy. “The whole world is looking at DEFA,” Hartarto said, noting that negotiations have already gone through around 20 rounds since discussions began under Indonesia’s ASEAN chairmanship in 2023. “We don’t need perfection, but we need to move on.”

The proposed agreement aims to establish a common framework for digital trade, electronic commerce, digital payments, data governance and other areas of the digital economy across the 10-member ASEAN bloc. Analysts say the deal could help harmonize digital regulations across Southeast Asia, lower business costs and accelerate cross-border investments, particularly in fintech, e-commerce, cloud computing and digital infrastructure. Hartarto described DEFA as the region’s response to growing economic risks including energy price volatility, food security concerns and global trade tensions. “This is the economy of the younger generation. This is the economy that is not prone to tariff war,” he said.

The Indonesian minister also revealed that Jakarta had already resolved its issues related to the agreement and called on other ASEAN members to compromise to complete negotiations. “We can always evaluate implementation for every country,” he said, adding that no single nation should dictate how others implement digital policies. Beyond digital cooperation, Hartarto pushed for stronger collaboration between Indonesia and the Philippines in nickel processing, special economic zones, agriculture and fertilizer supply as both nations seek to strengthen regional supply chains. He also highlighted opportunities for closer bilateral cooperation in digital infrastructure, particularly in Mindanao, where Indonesia is developing a fiber optic landing station in Manado.

Source: SunStar Publishing Inc., “Indonesia urges ASEAN to seal digital trade deal” (May 19, 2026).

Singapore’s Monetary Authority of Singapore (MAS) has revoked the payment services licence of Bsquared Technology Private Limited, marking a significant enforcement action in the city-state’s fintech regulatory landscape.

According to Fintech News Singapore, which published the report on May 20, 2026, the regulator cited “serious breaches” in its decision to strip the payments firm of its operating licence. The Revocation Notice, issued under the Payment Services Act (PSA), indicates that Bsquared Technology failed to meet mandatory compliance and operational standards required of licensed payment institutions in Singapore.

By revoking the licence, MAS has effectively halted Bsquared Technology’s ability to conduct any regulated payment activities in Singapore, including domestic and cross-border money transmission, issuance of digital payment tokens, and other payment services under the PSA framework. Entities operating without a valid payment services licence may face legal action, and customers of the firm should be alerted that their funds need to be recovered through the regulator’s enforcement process.

Regulatory enforcement actions like this signal MAS’s increasing vigilance in overseeing Singapore’s payments sector, which is one of the most active fintech ecosystems in ASEAN. The regulator has in recent years taken a firm but progressive stance on licensing and supervision, granting numerous payment institutions licences while simultaneously holding them to strict compliance standards. The revocation of Bsquared Technology’s licence underscores the stakes of regulatory non-compliance in Singapore’s tightly regulated financial centre.

This development is particularly noteworthy given Singapore’s role as the regional headquarters for numerous fintech firms and payment service providers operating across Southeast Asia. Industry observers will be watching closely to understand the specific compliance failures that prompted the regulator’s action, as it may set a precedent for how MAS oversees the payments sector going forward.

Source: Fintech News Singapore, May 20, 2026.

India’s Adani Group Agrees to $352 Million Settlement Over Alleged Iran Sanctions Violations

By Asian Legal Review Staff | May 19, 2026

The Adani Group, India’s largest business conglomerate, has agreed to pay a $352 million settlement to the United States over alleged violations of US sanctions on Iran, the Straits Times reported on May 19, 2026. The settlement represents one of the largest cross-border regulatory penalties to involve an Indian corporate entity and underscores the growing reach of US secondary sanctions in South and Southeast Asian markets.

The announcement came days after the billionaire industrialist and his family agreed to pay a separate US$18 million settlement in a US civil court case linked to corruption allegations. The dual settlements represent a significant escalation in US regulatory scrutiny of Indian business groups and highlight how compliance risks for Asia-Pacific multinationals continue to intensify despite geopolitical sensitivities between Washington and New Delhi.

The case highlights the complex compliance challenges facing large Asian conglomerates that conduct business across multiple jurisdictions. As US sanctions enforcement has become increasingly extraterritorial in scope, companies operating in regions with significant Iranian trade ties — including Southeast Asia — face mounting pressure to ensure their supply chains and financial transactions do not inadvertently trigger secondary sanctions exposure. The settlement also arrives amid ongoing tensions between the US and India over New Delhi’s continued energy purchases from Iran, making the case particularly sensitive diplomatically.

For financial institutions and businesses operating in SEA and South Asia, the decision serves as a stark reminder that US sanctions compliance is no longer optional for cross-border commerce. Regional banks and payment processors, particularly those in Singapore, Hong Kong, and Southeast Asia that facilitate trade finance with the Middle East, will likely face increased due diligence requirements and internal compliance overhauls in the coming months.

Source: The Straits Times, “India’s Adani to pay $352m settlement to US over alleged Iran sanctions violations” (May 19, 2026).

Singapore’s financial regulator has made financial advice optional for complex products in a significant policy shift that prioritises investor autonomy while maintaining targeted safeguards for vulnerable groups. The Monetary Authority of Singapore (MAS) published its consultation response confirming the regulatory transition from a mandatory financial advice model to a disclosure-based framework for distribution of complex financial products.

The change means investors purchasing complex products — including structured notes, derivatives, and newly classified investment-linked policies — will no longer be required to obtain financial advice before investing. Instead, financial institutions will issue mandatory pre-transaction alerts reminding investors to review product documents, complete learning modules on complex products, and seek advice if desired. A streamlined alert version will be permitted for subsequent transactions within the same month for investors who have already traded complex products.

However, the disclosure-based model includes targeted protections. Investors classified as “selected clients” — those meeting at least two of the following criteria: aged 62 or older, not proficient in spoken or written English, and below GCE “O” or “N” level qualifications — will still require mandatory financial advice unless they pass a Customer Knowledge Assessment and opt out. These clients must also be accompanied by a trusted individual during sales sessions and subject to pre-transaction call-back verification by financial institutions.

Notably, MAS rejected proposals for a Product Knowledge Assessment as an alternative to the existing Customer Knowledge Assessment, instead choosing to collaborate with industry bodies — the Singapore Banks’ Association, Securities Industry Council, and SGX — to enhance existing learning modules for investor education. MAS officials framed the changes as a natural evolution reflecting how digital platforms have transformed how retail investors access information and make investment decisions. Legislative amendments to formalise these regulatory changes will be subject to a future consultation.

This article drew on reporting from the MAS consultation response, MAS media release on enhancements to Product Highlights Sheets and complex products framework, and industry analysis from Fintech News Singapore.

The Monetary Authority of Singapore’s (MAS) consultation on its cryptoasset prudential framework has reached its deadline today, 18 May 2026, marking a critical inflection point for how banks in the world’s leading Asian financial centre will manage crypto exposure on their balance sheets.

Proposed earlier this year, the new framework introduces risk-sensitive treatment for cryptoassets held on permissionless blockchains, proposing to classify them as “Group 1 cryptoassets” under principle-based requirements with interim exposure and issuance caps. The rules would allow Singapore-based banks to hold and trade cryptoassets more directly, while subjecting them to proportionate capital and risk management requirements calibrated to the specific risk profile of each asset type.

The consultation period closes on 18 May 2026 — the very day we are reporting. Industry participants have been pressing for regulatory clarity as competition between Asian financial hubs intensifies: Hong Kong’s SFC has already enabled secondary market trading for tokenised investment products, and South Korea is advancing its own digital asset law. Singapore’s ability to move quickly from consultation to implementation could determine which hub captures institutional crypto trading volume in the region.

Notably, MAS has been comprehensive in its approach. In parallel developments, the central bank also recently concluded its consultation on enhancements to Product Highlights Sheets and the framework for complex products, effectively shifting from mandatory to optional financial advice for complex investment products while strengthening safeguards for vulnerable investor categories. Together, these moves signal a broader regulatory philosophy: Singapore is transitioning from prescriptive oversight to a risk-sensitive, disclosure-based regime that encourages innovation while maintaining investor protections.

For market participants, the immediate priority is reviewing the final consultation response — expected in the coming weeks — for any changes to the proposed capital charges, liquidity requirements, or operational resilience standards for banks handling cryptoassets. The framework’s final form will likely set the de facto standard for other ASEAN regulators looking to develop their own digital asset approaches.

Source: Monetary Authority of Singapore, “MAS Concludes Consultation on Enhancements to Product Highlights Sheets and Streamlined Framework for Complex Products,” 15 May 2026; MAS cryptoasset prudential framework consultation materials, accessible via the MAS website (consultation closes 18 May 2026).