Crypto: A Growing Economy in Asia

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October 7, 2026Hugh Bernard

South Korea: The Leader in Crypto Adoption in East Asia

The company Chainalysis regularly measures the adoption of cryptocurrencies in different parts of the world. A study it recently conducted for the East Asia region, between July 2025 and June 2026, highlights << one of the most diverse crypto economies in the world >>, including very different regulatory environments, risk appetites, and business objectives.

Among the countries analyzed in this report, South Korea undoubtedly stands out as the undisputed leader, with a crypto economy estimated at $449.1 billion, far ahead of the other two podium positions occupied by Japan ($228.3 billion) and Hong Kong ($192.2 billion).

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Crypto Economy in East Asia

A Korean activity that has progressed by 12.3%, primarily driven by individuals, with a strong appetite for tokens related to artificial intelligence (AI). Indeed, they alone represent a trading intensity in won 19.5 times higher than that observed in yen, which Chainalysis interprets as << a reproduction of the investment preferences observed in the country's stock market >>.

Notably, this South Korean crypto adoption << is still occurring without major participation from financial institutions >>, although the executive director of Korea Blockchain Week, Francis Kang, explains that << all major banks and brokerage firms now have a dedicated team for digital assets, and most are conducting experiments around stablecoins, tokenization, or asset custody >>.

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Significant Diversities by Country

During the studied period, << the crypto economy of the region has overall slightly contracted >>. However, significant differences emerge, particularly involving an explosion of institutional platforms in Hong Kong, which received 87% more funds compared to the previous year, as well as an attraction to decentralized exchange (DEX) platforms, whose incoming flows increased by 36% in Japan. Meanwhile, South Korea shows a growth of 16.3% in its exchange platform ecosystem.

This allows the CEO of Tiger Research, Daniel Kim, to present this Asian crypto ecosystem as << this rare region that combines both the depth of a market driven by individuals and the firepower of institutional investors >>. Especially with very marked national specificities.

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Indeed, while South Korea primarily relies on its individual investors, Japan is experiencing a significant increase in interest in the DeFi sector and associated DEXs. However, << the clearest structural trend in this report >> concerns the rise of institutional platforms (custody, OTC, market makers, prime brokerage) in Hong Kong, which now account for 16% of the inflows to crypto services, compared to less than 6% in all other East Asian markets. The reason? A market where << regulatory clarity has become the main driver of participation >>.

Regarding China, Chainalysis experts note a significant increase in the use of stablecoins, which is primarily based on peer-to-peer flows due to the ban on crypto exchanges in the country. This activity has surged since March 2025, when the social credit system was extended to finance and the Internet, highlighting a possible use intended to evade government-monitored financial circuits.

Regulation Shaping the Asian Crypto Economy

In conclusion of this report, Chainalysis addresses the regulatory situation in East Asia as << a particularly revealing observation ground for the concrete effects of regulation on crypto markets >>. The most striking example: a Chinese ban that has led to a strategic shift resulting in the number of unique wallets conducting P2P transactions in stablecoins increasing by 43 times in two years.

A strategy quite different from that of Japan, Hong Kong, Singapore, and South Korea, which have chosen to implement << regulated access regimes aimed at bringing activity within a framework subject to licenses and supervision >>. But will this be enough to channel all activity towards compliant players?

The question is officially raised, as the CEO of Tiger Research notes a regulatory strategy deployed << in a market historically dominated by individual investors, whose center of gravity is now shifting towards institutions >>.

Source: Chainalysis

Hugh Bernard1256 articles
Passionate about cryptocurrencies and the principle of decentralization for many years, I wish to share this experience with as many people as possible. I also focus on deciphering the issues associated with the evolution of this ecosystem within traditional finance.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.