South Korea, Vietnam, Malaysia, Thailand, and Hong Kong are at the forefront of Asia’s surge, spearheading the adoption, governance, and innovation that are transforming global finance.
Unlike many parts of the world, Asia is quickly solidifying a primary position in the cryptocurrency and decentralized finance ecosystem. At the forefront of this change are South Korea, Vietnam, Malaysia, Thailand, and Hong Kong, each aiding in the nationwide and global proliferation of digital currencies and DeFi. These nations are accelerating the adoption of crypto and devising novel frameworks that are transforming the global financial system.
These efforts advance financial inclusivity and transparency while having far-reaching impacts. This dominance from Asia was also seen in DeFi, wherein seven of the top twenty most active countries were from Asia. Indonesia, for instance, reported over $30 billion in crypto transactions between January and October 2024, a phenomenal 350 percent increase over the same period the previous year.
South Korea Balances Growth and Regulation
Keenly interested in innovations, South Korea hosts and fosters a large number of cryptocurrency start-ups despite trying to impose regulations. Maintaining a coexistence between stimulation and control, the region boasts of an unprecedented crypto innovation surge. Digital assets surpassed a market cap of 100 trillion won ($74.8 billion USD), with trading activity surpassing that of the stock market. Postponement of the Credit Information Act until December 2025 aids exchanges in meeting new rules. Furthermore, the South Korean government’s 20% capital gains tax on crypto has been postponed till 2027, primarily because of the mounting enforcement hurdles. South Koreans are still very active and prefer altcoins for their efficiency, including XRP. South Korea continues to focus on consumer protection and market trust through VAUPA (Virtual Asset User Protection Act).
Vietnam Leads in Crypto Remittances
Being among the top-ranked countries for crypto remittances, Vietnam is also benefiting economically from digital currencies owing to their low-cost transactions when compared to traditional services. The country received $105 billion worth of crypto in 2024, which put the country in fifth position globally. However, its legal standing is ambiguous as well. While several regulations prohibit its use for payments, citizenship, and trade, there is still no sanctioned law that bans the currency either. The Ministry of Justice clarifies its statements and ensures there is no intent to ban cryptocurrency. Though also overlooking mounting uncertainties, analysts optimizing 2025 are predicting improvement in Vietnam’s emittance hub status.
Malaysia Establishes Regulation Framework
While still lacking legal status as tender, Malaysia is making strides towards cryptocurrency regulation. They cover all digital currencies under the Supervisory Framework for Digital Assets Policy issued in 2020 by the Securities Commission of Malaysia and later updated in the 2024 Strategic Response Framework to Counter Money Laundering and Combat the Financing of Terrorism. Amendments in 2025 separated digital assets into digital currency and tokens while placing further restrictions and requirements on digital asset companies, like requiring specific operational focus. One of the main goals for these regulations is to provide orderly control in a developing market.
Thailand Enhances Tourism with Blockchain Technology
Thailand goes beyond crypto integration, ranking 16th in the world for adoption and sectors like tourism. Of the $50 billion crypto value from Thailand recorded in 2024, $16 billion stemmed from direct tourism, showcasing its importance. The government aims to enhance tourist experience further by exploring digital identity and payments via blockchain. Cryptocurrency markets accept Bitcoin, Ethereum, Ripple, and Stellar as tradable currencies while not having legal status as tender. The Bank of Thailand (BOT) also allows USDT and USDC stablecoins for digital transactions, although local banks refraining from any direct engagements still portrays Thailand as forward-thinking.
Hong Kong Emerges as a Vibrant Crypto Hub
As a favorable city in the crypto space, Hong Kong is gaining recognition as the second most attractive destination globally, following Ljubljana. The SFC started permitting virtual asset trading companies to operate in Hong Kong in 2022; by 2025, ten companies, including Bullish, were granted start permits. Licenses ahead of 2023 came with stringent requirements for blockchain-based gaming platforms and other private services.
Also, plans to legislate tax exemptions intended for institutional investors in crypto for 2024 position Hong Kong as a rival investment center alongside other countries. These four states, together, help Asia rise to challenge the rest of the world with innovation in crypto and provide digital financial services throughout the world.
