Asian Crypto Adoption Boom: A Deep Dive

Asian crypto adoption has made significant progress in the global crypto landscape. Take crypto mining, for example. Before China’s ban on cryptocurrency in 2021, the country dominated the industry, controlling 67% of the global hash rate at its peak.

Since then, other countries like Malaysia, Indonesia, Thailand, and Laos have positioned themselves as the new Asian crypto hubs. Furthermore, Central and Southern Asia and Oceania (CSAO) lead the world in crypto adoption numbers.

Seven of the top 20 most active countries in centralised and decentralised finance (DeFi) are from Asia. Indonesia, for instance, saw over $30 billion in crypto transactions between January and October 2024, marking a 350% growth compared to the previous year.

In part two of the listicle, we will continue to examine the stance of other Asian countries on crypto.

South Korea: Compliance and Consumer Protection

A strange mix of regulatory uncertainty and growing market activity underscores the South Korean crypto market. The Credit Information Act has been postponed till December 2025, which has allowed exchanges in South Korea a bit more breathing space to comply with the nation’s data protection rules.

In the meantime, crypto trading has surged, exceeding the South Korean stock market activity, where digital assets reached a market capitalisation of over 100 trillion won ($74.8 billion). Moreover, global political shifts such as the election of Donald Trump as President of the United States have influenced a fivefold increase in trading volume.

The country has delayed the 20% capital gains tax on crypto till 2027, citing enforcement challenges. The government is cracking down on market manipulation by enforcing crypto companies to comply with the Virtual Asset User Protection Act (VAUPA), which mandates stricter oversight of digital assets.

Despite regulatory scrutiny, South Korea remains one of the world’s most active crypto markets today. Altcoins such as XRP are especially popular in the region, showcasing South Korea’s preference for a fast and cost-effective transaction solution.

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Vietnam: The Asian Crypto Remittance Poster Child

Cryptocurrencies, being cost-effective when compared to traditional money transfer services, have become a viable option in Vietnam for people dependent on remittances. The country ranked fifth globally with $105 billion in crypto value received in 2024. However, the legal status of crypto in Vietnam is still murky.

The State Bank of Vietnam prohibits issuing, distributing, and using cryptocurrency as a payment method. That being said, the country does not consider owning and trading cryptocurrencies illegal. In 2024, the Vietnamese Ministry of Justice clarified its stance on crypto, explaining that owning cryptocurrency is not illegal and that the regulatory body will not ban the asset class.

Analysts expect the country to release its framework for governing crypto in 2025.

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Malaysia: Strengthens Policy as It Prepares for a Crypto Framework

While the country does not consider digital assets legal tender, it still defines the asset class as a form of securities. The country has been hard at work, trying to develop a comprehensive legal framework to regulate digital assets and service providers.

Malaysia officially brought cryptocurrency under regulatory oversight with the enactment of the Capital Markets and Services Order of 2019. Following the 2019 order, the Securities Commission Malaysia (SC) issued its 2020 Guidelines on Digital Assets that took effect on 28 October 2020.

Recently, certain updates have been made to Malaysia’s regulatory framework. The updates include the Guidelines on Prevention of Money Laundering in 2024 and an amendment to the Capital Markets and Services Act in 2025.

The updates to the regulatory framework separated digital assets into two categories, i.e., digital currency and digital token.

Companies that want to operate in Malaysia must specify whether they deal in digital currency or tokens. Based on that, regulators have categorised the companies as a Recognised Market Operator for Digital Asset Exchanges (RMO-DAX), a Digital Asset Custodian (DAC), or an Initial Exchange Offering (IEO

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Thailand: Merging Blockchain Innovation with Tourism

Thailand ranks 16th globally in the crypto landscape and is integrating blockchain technology into its tourism sector. The country received $50 billion in crypto value in 2024.

The nation is exploring the application of blockchain technology for digital identity verification and secure payment systems to enhance the tourist experience.

As is the case in many other Asian countries, Thailand does not recognise cryptocurrencies as lawful currency and does not consider them legal tender. The Royal Decree on Digital Asset Business, which took effect on 18 May 2018, deems crypto a digital asset instead.

The Securities and Exchange Commission (SEC) has approved Bitcoin, Ethereum, Ripple, and Stellar as tradable cryptocurrencies. However, local banks and other financial institutions are still banned from dealing directly with cryptocurrencies.

The Bank of Thailand (BOT) on 19 March 2021 announced that it will be regulating foreign currency and asset-backed stablecoins. BOT-approved stablecoins (USDT, USDC) are legal in Thailand and can be used for digital transactions.

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Hong Kong: The Second Most Asian Crypto-Friendly City

According to a recent report by the migration platform Multipolitan, Hong Kong is the second most crypto-friendly city, just behind Ljubljana, the capital of Slovenia. Following Hong Kong in the ranking are Zurich, Singapore, and Abu Dhabi.

Crypto whales holding on to large amounts of crypto assets are looking for alternative residences and second citizenships in tax-neutral jurisdictions around the world. Hong Kong has been in the process of developing its own crypto framework since 2022.

The Securities and Futures Commission (SEC), so far, has given operational licenses to 10 virtual asset trading firms, including Bullish, the New York-based exchange platform. Bullish became the first foreign company to get approval for operating in Hong Kong in February 2025.

In 2023, the city implemented a strict licensing regime for virtual asset trading platforms. Furthermore, in 2024, Hong Kong proposed tax exemptions on crypto gains for hedge funds, private equity, and family offices to attract more digital asset investments to compete with regional rivals like Singapore.

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