Regulatory Arbitrage in Asia-Pacific Banking Law: Cross-Border Stablecoin Lending and Supervisory Challenges (2024–2025)

This paper examines the legal and policy dimensions of regulatory arbitrage in the Asia-Pacific banking sector, with a focus on cross-border stablecoin lending between 2024 and 2025. It provides a comparative analysis of frameworks in Singapore, Hong Kong, Malaysia, Australia, and Japan, drawing on official publications from the Monetary Authority of Singapore (MAS), Hong Kong Monetary Authority (HKMA), Bank Negara Malaysia (BNM), Australian Prudential Regulation Authority (APRA), and the Financial Services Agency (FSA) of Japan. Case studies highlight jurisdictional loopholes exploited by lending platforms, while reform proposals are advanced to promote harmonised licensing, AML/CFT enforcement, and Basel-aligned prudential treatment. This research is relevant to policymakers, regulators, banking law scholars, and compliance professionals working at the intersection of finance and technology. Keywords:Banking Law, Stablecoin Lending, Regulatory Arbitrage, Asia-Pacific Law, Financial Regulation, Basel Standards, FATF, Cross-Border Finance