The region posted the fastest expansion worldwide in onchain value received over the past year, with India, South Korea, and Indonesia all posting triple-digit gains. Among them, Japan surprised observers with the strongest surge, recording a 120% jump as its government retooled regulation and taxation rules.
Chainalysis researchers said the November 2024 rally following Donald Trump’s U.S. election win helped fuel activity across the region, but Japan’s policy pivots created momentum that continued into 2025. Recent reforms lowered tax burdens, loosened restrictions on stablecoin listings, and allowed the first yen-backed stablecoin to launch domestically. Analysts now expect these steps to anchor longer-term adoption.
Across APAC, stablecoins have become the backbone of growth. South Korean trading volumes spiked more than 50% early this year, with banks preparing for new rules. Japan’s approval of JPYC added a local twist, while dollar-backed tokens like USDC remain dominant in regional trading. Chainalysis noted that other jurisdictions are also experimenting: Australia licensed its first stablecoin under financial services laws and granted distributors regulatory relief.
The report highlighted the diversity of crypto use cases across the region. In India, crypto is split between young retail traders and remittance users; Vietnam relies on tokens for savings, payments, and gaming; Pakistan’s mobile-first population uses stablecoins to shield against inflation; while South Korea trades digital assets in a manner closer to equities. Even smaller markets — Singapore, Hong Kong, and Australia — are adjusting their frameworks to provide greater clarity.
Though its market size still trails South Korea and India, Japan is now viewed as a rising force in adoption. Bitbank’s Atsushi Kuwabara said domestic exchanges are seeing steady increases in both new and returning customers, reflecting greater comfort with crypto products. Chainalysis added that expectations of further favorable reforms could keep momentum going.
The report concludes that while each market’s entry point differs, APAC as a whole is set to remain crypto’s growth engine — with Japan’s rapid policy-driven turnaround marking one of the most significant stories in the region.
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