A dramatic shift in the power balance of the global cryptocurrency ecosystem is underway, with Asia developing into a vibrant hot spot of digital asset adoption. While a variety of Asian countries are now individually adapting to the new world of cryptocurrencies and blockchain technology, China’s previously established stronghold in crypto mining has been dismantled due to its 2021 ban. From the compliance-first approach of South Korea to Hong Kong’s crypto-everything aspiration, the continent is teeming with opportunistic activity.
South Korea: Balancing Compliance and Surging Market Activity
South Korea has captured the attention of many in the Asian crypto market for the dual reasons it offers: a region with no clear rules for cryptocurrency yet one with an influx of trading activity. South Korea’s appetite for crypto trades was recently reported to have overtaken trades made in the country’s well-established stock market. Currently, the digital assets market boasts over 100 trillion won (approximately $74.8 billion) in market capitalization.
Moreover, global political events, like the recent election of Donald Trump, have caused a 500% increase in trading volumes, which showcases how sensitive the South Korean crypto market is to international developments.
The government’s decision to postpone a controversial 20% capital gains tax on crypto until 2027 shows a hands-off approach. However, the South Korean government remains dedicated to consumer protection by cracking down on market manipulation through the enforcement of the Virtual Asset User Protection Act (VAUPA).
Vietnam: The Unnamed Leader in Crypto Remittances
Vietnam is one of the largest players in the world for the use of cryptocurrencies, especially with remittances; it’s no wonder why. Because these digital currencies allow for lower fees than traditional methods of money transfers, it’s logical for a significant portion of Vietnamese citizens dependent on offshore employment to utilize them.
Further indicating the country’s relevance and dominance in this area is the fact that it placed fifth in the world for the amount of cryptocurrency value received in 2024. Also, in 2024, the Ministry of Justice of Vietnam further elaborated on their position regarding crypto, affirming that it is legal to possess crypto and stating that regulatory authorities have no plans to lose this market.
Experts expect that Vietnam will issue its guiding principles for the circulation of crypto assets in 2025, which is hoped to bring order to the ever-quickening pace of the market.
Malaysia: Strengthening Policy in Anticipation of a Framework
While not going as far as recognizing digital assets as a legal currency, Malaysia defining them as a type of security signifies the attempt to bring the asset class under some form of regulatory oversight. With the enactment of the Capital Markets and Services Order of 2019, Malaysia officially brought cryptocurrency under regulatory scrutiny.
Following this step, the Securities Commission Malaysia (SC) published its 2020 Guidelines on Digital Assets that came into force on 28 October, 2020. Recent changes to Malaysia’s regulatory framework include the Guidelines on Prevention of Money Laundering of 2024 and an amendment to the Capital Markets and Services Act of 2025.
These changes further consolidate the country’s existing regulatory approach by regarding digital assets and further classifying them as digital currency and digital tokens.
Thailand: Integrating Blockchain Technology Wisely within its Tourism Sector.
Thailand is already ranked 16th in the world for crypto adoption, and this comes from a hefty $50 billion the country received in crypto value in 2024. With blockchain technology, Thailand’s government seeks to improve the experience of tourists visiting the country by making digital identity verification efficient alongside securely processing payments through blockchain.
Keeping in mind the overall tourist experience, Thailand is exploring uses for blockchain technology. As with other countries in Asia, traditional financial institutions, along with local banks, are barred from interacting with cryptocurrencies directly.
An interesting move by Thailand’s regulators was their announcement in March 2021, which stated that they would be regulating foreign currency and asset-backed stablecoins. Less strict guidelines have been put in place for stablecoins like USDT and USDC for transactions, making Thailand’s certified stablecoins legal for digital transactions.
Hong Kong: Aiming to Be a Leading Crypto-Friendly City
According to a recent report, Hong Kong ranks second only to Miami as the world’s most crypto-friendly city. The region has emerged as a significant crypto hub within Asia. It seems that crypto whales are taking a keener interest in claiming residence and second citizenship in Hong Kong because of its tax-neutral policies.
Hong Kong has been developing its comprehensive crypto governance framework since 2022 and further one-upped Singapore by proposing tax-free crypto gains for hedge funds, private equity firms, and family offices in 2024. These moves clearly showcase the region’s strategy to lure more investments in digital assets.
Conclusion: Asia’s Diverse and Dynamic Crypto Future
Asia stands out in the way cryptocurrencies are adopted and used, showcasing the continent’s deepening impact on the international ecosystem of digital assets. South Korea’s stressful enforcement of regulations and Vietnam’s position as a crypto remitter, alongside Malaysia’s bolstering policy framework, Thailand’s touristic innovation integration, and Hong Kong’s drive to be a leading crypto city, illustrate how Asia is navigating the ever-changing landscape of cryptocurrency and blockchain technology. Undoubtedly, we will witness further developments in other nations and a clearer picture of the digital economy in the subsequent years.
