The global crypto market has rebounded with renewed vigor in 2025, and one of the most influential forces behind this momentum is retail participation from across Asia. From tech-savvy traders in South Korea to Web3 gaming communities in the Philippines and institutional shifts in Hong Kong and Thailand, the region is shaping the future of digital asset adoption in unique and dynamic ways.
While the U.S. approval of Bitcoin ETFs in early 2025 helped restore mainstream confidence after the 2022 market downturn, it’s the sustained demand from Asian retail investors that continues to fuel innovation, trading volume, and regulatory evolution across the continent.
This article explores how different markets in Asia—from Australia to Vietnam—are engaging with cryptocurrency through distinct cultural, technological, and regulatory lenses.
👉 Discover how global market trends are shaping crypto strategies today.
South Korea: A Powerhouse of Retail Crypto Activity
South Korea stands out as one of the most active retail crypto markets globally. The Korean won recently surpassed the U.S. dollar in on-chain trading volume for cryptocurrencies, according to data from CryptoQuant—highlighting its outsized influence.
What sets Korean traders apart is their strong preference for altcoins. While altcoins make up about 50% of trading volume on global exchanges, they account for roughly 80% of trades on Korean platforms. This appetite for high-risk, high-reward digital assets reflects a deep-rooted culture of speculative trading and early adoption of emerging technologies.
Gaming also plays a crucial role. Major developers like Nexon Games Co. and NCSoft Corp. are launching new play-to-earn (P2E) blockchain games in 2025, blending entertainment with financial incentives. These games reward players with NFTs and tokens, further integrating crypto into everyday digital life.
Despite this enthusiasm, regulators remain cautious. After the collapse of Terra (LUNA) and UST in 2022—co-founded by South Korean entrepreneur Do Kwon—the government passed stricter investor protection laws, requiring oversight of crypto exchanges and custodians. These measures aim to balance innovation with consumer safety.
The Philippines: Ground Zero for Blockchain Gaming
In the Philippines, Web3 gaming isn’t just entertainment—it’s an economic engine. Games like Axie Infinity and Pixels have created real income opportunities for thousands, especially during periods of economic uncertainty.
Players often join “guilds”—organized groups that pool resources and share rewards. These guilds operate both online and offline, with some even running physical gaming hubs where members can play together. One of the largest, Yield Guild Games, has evolved beyond gaming to become a Web3 infrastructure builder, supporting other guilds worldwide.
Leah Callon-Butler, head of Emfarsis, a Philippine-based Web3 consultancy, emphasizes that the country is a global leader in blockchain game adoption:
“The Philippines isn’t just playing these games—it’s pioneering the ecosystem around them.”
While the central bank doesn’t recognize crypto as legal tender, it maintains a regulatory sandbox to encourage innovation under supervision. The Bangko Sentral ng Pilipinas is also piloting a central bank digital currency (CBDC), signaling a long-term commitment to digital finance.
Hong Kong: Aspiring to Be Asia’s Regulated Crypto Hub
Hong Kong made headlines in April 2025 by launching its first spot cryptocurrency ETFs, marking a bold step toward becoming a regulated digital asset hub. These ETFs allow retail investors direct exposure to Bitcoin and Ethereum under strict oversight—a model designed to attract institutional capital while protecting consumers.
Patrick Pan, CEO of digital asset platform OSL, notes that Hong Kong’s retail traders are particularly drawn to leverage trading and alternative investments. Influenced heavily by social media and key opinion leaders (KOLs), many young investors embrace high-risk strategies in hopes of rapid gains.
“Many believe they can beat the odds,” says 23-year-old investor Chun Ho Chow. “I know there's survivorship bias, but I still think I can do it too.”
However, Hong Kong’s tight regulations—such as restrictions on staking and derivatives for licensed platforms—have raised concerns about competitiveness compared to less regulated jurisdictions. Still, the success of its ETFs will be a key indicator of whether its vision for a compliant yet vibrant crypto market can succeed.
👉 Explore how ETFs are transforming access to digital assets worldwide.
Australia: Ethereum Enthusiasts Leading the Charge
Australian investors show a clear preference for Ethereum over Bitcoin. According to a Kraken survey, Ethereum makes up 59.4% of holdings in Australian wallets, compared to just 17.7% for Bitcoin—dramatically higher than the global average of 34.5% for ETH.
Sydney-based trader Kurtis Dawe, 33, sold all his Bitcoin positions last year, citing Ethereum’s greater upside potential. “It hasn’t appreciated as much as Bitcoin yet,” he explains, “and so much of the altcoin ecosystem runs on its blockchain.”
Many Australians are optimistic that an Ethereum ETF could be approved soon—mirroring the U.S. decision on Bitcoin—which could trigger another wave of institutional inflows.
Australia’s plans to introduce crypto ETFs on its main stock exchange reflect broader efforts to modernize financial infrastructure and meet growing retail demand.
Japan: Institutional Caution Meets Government Support
Japan’s approach blends top-down support with bottom-up caution. The government is actively promoting Web3 initiatives as part of its economic revitalization strategy, easing tax and listing rules for blockchain firms and allowing venture capital funds to hold crypto directly.
Financial giants like Nomura Holdings are advancing security token offerings (STOs), turning real-world assets like bonds and real estate into tradable digital tokens—a move that could redefine capital markets.
Yet retail access remains limited. Mutual funds cannot invest in crypto assets, including foreign Bitcoin ETFs, due to strict financial regulations. Analyst Masamichi Matsushima of Monex Group notes that traditional financial institutions remain hesitant without explicit regulatory greenlights.
This creates a paradox: strong policy support at the national level coexists with conservative implementation at the institutional level.
India: Navigating Tax Hurdles and Offshore Access
Indian investors remain deeply interested in U.S.-listed Bitcoin ETFs. Through the Reserve Bank of India’s Liberalized Remittance Scheme (LRS), individuals can send up to $250,000 annually abroad—funds often used to purchase foreign securities, including digital assets.
However, domestic conditions are challenging. A steep 30% tax on crypto gains introduced in 2022 significantly dampened trading activity. While intended to formalize the sector, critics argue it stifled innovation and pushed traders offshore.
Recent actions include crackdowns on unregistered foreign exchanges and expanded trials of India’s CBDC. With the government aiming to finalize a comprehensive crypto legal framework by mid-2026, clarity may soon emerge.
Singapore: A Hub for Institutions, Not Retail
Singapore takes a selective approach: open for business with institutions, cautious with individuals. The Monetary Authority of Singapore (MAS) has repeatedly warned residents about the risks of crypto trading and bans public advertising by crypto firms.
Yet it actively supports blockchain use cases like cross-border payments, digital bonds, and tokenized assets through initiatives like Project Guardian—an experimental platform for institutional-grade DeFi applications.
With limited local retail participation, Singapore focuses on building trusted infrastructure for global players rather than mass adoption.
Taiwan: Regulating Access to U.S. ETFs
In Taiwan, access to U.S. Bitcoin ETFs became a flashpoint in early 2025. Initially available via international brokerage partnerships, local brokers were ordered by the Financial Supervisory Commission (FSC) to halt such services in January “to protect investors.”
Discussions about resuming access were expected by April, but no decision has been made yet—leaving many retail investors in limbo despite strong interest.
Thailand: Reviving Trust After Market Crashes
Thailand’s crypto landscape was shaken by the 2022 collapse of local exchange Zipmex. In response, regulators tightened oversight—but under new Prime Minister Srettha Thavisin, the country is now pushing to become a Southeast Asian digital asset hub.
Tax exemptions on crypto transactions and permission for locals to invest in overseas ETFs have boosted sentiment. Binance has partnered with Gulf Energy Development—the country’s largest private power firm—to launch a new exchange, intensifying competition among local platforms.
Notably, Thai regulators have taken a historic step by allowing mutual funds to invest directly in cryptocurrencies—a rare move in Asia.
Vietnam: A Sandbox for Web3 Innovation
Vietnam is emerging as a hotbed for Web3 game development, home to studios like Sky Mavis (creators of Axie Infinity) and Sipher.
Giap Van Dai, CEO of Nami Foundation, says the absence of formal crypto regulations creates a de facto regulatory sandbox, encouraging experimentation among developers and investors alike.
While crypto isn’t recognized as legal tender—and using it for payments violates central bank rules—authorities haven’t outlawed ownership or trading. Instead, they’re working on a legal framework by May 2026 focused on anti-money laundering (AML) compliance.
Frequently Asked Questions
Q: Why are Asian retail investors important to the crypto market?
A: Asia represents a massive population base with high mobile penetration and early tech adoption. Retail enthusiasm drives liquidity, innovation in gaming and DeFi, and influences global price movements.
Q: Which country has the highest Ethereum adoption among retail investors?
A: Australia leads globally in Ethereum wallet concentration, with nearly 60% of holdings in ETH compared to just over 17% in Bitcoin.
Q: Are crypto ETFs available across Asia?
A: Hong Kong offers spot crypto ETFs; Australia plans to list them soon; India and Taiwan restrict access to foreign ETFs; Japan does not allow mutual funds to hold them.
Q: Is crypto legal in all Asian countries?
A: No. China bans all crypto activities; others like India and Vietnam permit trading but don’t recognize it as legal tender; Singapore regulates institutional use strictly.
Q: How do play-to-earn games impact financial inclusion?
A: In countries like the Philippines and Vietnam, P2E games provide income opportunities for underserved populations, acting as alternative livelihoods during economic downturns.
Q: What role do regulators play in shaping crypto adoption?
A: Regulation varies widely—from restrictive (China) to experimental (Philippines’ sandbox) to progressive (Thailand’s fund access). Regulatory clarity often determines whether innovation thrives or goes offshore.
👉 Stay ahead with real-time insights into global crypto market movements.