Exploring Crypto Assets Adoption in the Asia-Pacific Region: India Leads by Far, Japan Shows the Strongest Rise

Author: Chainalysis

Compiled by: Felix, PANews

From July 2022 to June 2025, the Asia-Pacific region has shown strong growth in cryptocurrency activities, with estimated data on on-chain transaction value displaying a clear upward trend. On-chain monthly transaction volume grew from approximately $81 billion in July 2022 to a peak of $244 billion in December 2024, tripling in 30 months.

Significant growth periods include:

• At the end of 2023 and the beginning of 2024, with the recovery of the cryptocurrency market, the monthly on-chain transaction volume has surpassed the 100 billion USD mark for the first time.
• In the fourth quarter of 2024, driven by the surge in global markets following the U.S. presidential election, the year-end data for November and December in the region was strong, setting a record for the highest on-chain transaction volume.
• Although the trading volume has declined from the peak in December 2024, the on-chain transaction amount remains relatively high, exceeding 185 billion dollars per month as of mid-2025.

As the fastest-growing region for on-chain transactions globally, the Asia-Pacific region has become a key driver of global growth, with its monthly trading volume often second only to Europe and sometimes even surpassing North America. This data reflects the increasingly growing influence of the Asia-Pacific region in the global market, as well as its momentum for continued growth in the second half of 2025.

The cryptocurrency market in the Asia-Pacific region is exhibiting diverse development paths, with India becoming the largest market in the region at a scale of $338 billion. The characteristics of its crypto market lie in the widespread adoption at the grassroots level, filling structural gaps in traditional finance: key drivers include the remittance demands of a large diaspora, young people using crypto trading as a supplementary income source, and the enabling role of fintech tools such as Unified Payments Interface (UPI) and eRupi.

South Korea is the second largest market in the region, with cryptocurrency trading methods similar to stocks, characterized by high liquidity, high speculation, and mainstream adoption. At the same time, new regulations such as the "Virtual Asset User Protection Act" in 2024 are reshaping the activities of major exchanges in South Korea.

Vietnam ranks third, with its cryptocurrency widely used for remittances, gaming, and savings in everyday infrastructure. Pakistan, on the other hand, demonstrates a fourth typical model: the country's population is young and mobile-first, with $35 billion in remittances each year. Stablecoins are used to hedge against inflation, and freelancers are paid in cryptocurrency, thanks to the government's current signals of regulation rather than restriction.

In smaller markets, Australia is taking steps to update its anti-money laundering/combating the financing of terrorism (AML/CFT) regime, clean up inactive cryptocurrency exchange licenses, and provide clearer regulation for the industry, laying the groundwork for a more mature market. The policy momentum in Singapore and Hong Kong remains strong, with regulators continuing to emphasize that strict standards are the way to build a digital asset hub.

Regulatory changes boost cryptocurrency development in Japan

Among the top five markets in the Asia-Pacific region, Japan's growth is the strongest. In the 12 months ending June 2025, on-chain transaction value increased by 120% year-on-year, surpassing Indonesia (103%), South Korea (100%), India (99%), and Vietnam (55%). In recent years, Japan's market has been relatively stable, and this growth is closely related to several policy adjustments that will support long-term market growth (including regulatory reforms that more clearly incorporate cryptocurrencies as investment tools, planned changes to the cryptocurrency tax system, and the approval of the first yen-backed stablecoin issuer).

In contrast, the growth in India, South Korea, and Indonesia reflects ongoing expansion, but this expansion is based on already high market benchmarks, resulting in growth rates that do not match Japan; meanwhile, Vietnam's lower growth of 55% indicates that its crypto market is maturing, with cryptocurrencies becoming deeply integrated into remittances and everyday financial activities.

Japan's growth closely follows the significant progress made by its cryptocurrency industry. For a while, regulatory restrictions hindered the listing of stablecoins on Japanese exchanges, but this situation is changing. In the 12 months ending June 2025, cryptocurrencies purchased with yen primarily flowed into XRP, with a fiat trading volume of $21.7 billion, followed by Bitcoin ($9.6 billion) and Ethereum ($4 billion). Among these, XRP's trading volume dominates, indicating that investors may be betting on XRP's real-world utility, thanks to Ripple's strategic partnership with SBI. Looking ahead, the market will closely monitor the market acceptance of stablecoins such as USDC and JPYC.

The Korean market is driven by professional traders and stablecoin growth

Since December 2023, major exchanges in South Korea such as Bithumb and Coinone have begun to increase USDT/KRW trading pairs, with trading volume skyrocketing over 50% in early 2025. In the 12 months leading up to June 2025, stablecoins purchased with the Korean won reached $59 billion, indicating strong demand from traders for stablecoins, which are used for liquidity, hedging, and quicker rotations between assets. The robust domestic demand for stablecoins in South Korea is influencing the policy environment, with legislators and regulatory bodies considering establishing a regulatory framework for Korean won-backed stablecoins.

Current discussions are mainly focused on stablecoins issued by banks and regulated financial institutions, but there is still a lack of clear discussion on aspects such as distribution, exchange listing, and secondary market trading. South Korea's stablecoin activities lead the Asia-Pacific region by a wide margin, with trading volume related to the Korean won at approximately $59 billion, while the Thai baht is only $450 million, and other currencies like the Indonesian rupiah, Australian dollar, and Hong Kong dollar have even smaller trading volumes. To continue promoting the adoption of stablecoins in South Korea, regulation needs to cover the entire lifecycle from issuance to distribution, circulation, and integration into payment settlement systems.

Returning to the topic of on-chain trading volume, the South Korean crypto market has a significant amount of activity within the trading scale of $10,000 to $1 million, defined here as "professional" trading activity. Nearly half of South Korea's on-chain trading activity comes from this category, which is much higher than the global level. This reflects a culture of active trading among users in developed economies. Although regulatory restrictions have so far limited the participation of enterprises and institutional players in the South Korean market, recent strengthening of regulations is gradually opening the door for corporate participation, which could add diversity to the market.

Retail investors refer to trades below $10,000. Professional investors refer to trades between $10,000 and $1,000,000. Institutional investors refer to trades above $1,000,000.

India leads in the index due to its grassroots and institutional strength

However, India's crypto market is far ahead in on-chain trading volume and the 2025 global adoption index ranking in the Asia-Pacific region. This year, ranking first in all sub-indices, India's crypto market is both rapidly developing and highly complex. Organizations like the India Web3 Association are promoting cryptocurrency as a secure and legitimate means of value transfer. Meanwhile, the grassroots application of cryptocurrency in daily life is also very evident, from young students experimenting with blockchain and programming to communities using cryptocurrency to gain small income opportunities.

India's broader digital economy has laid a solid foundation for this growth. The country's thriving fintech ecosystem, widely used Unified Payments Interface (UPI), and innovations such as eRupi demonstrate India's capacity for large-scale adoption of new financial technologies. Although regulators and law enforcement agencies are working together to establish clear frameworks and oversight mechanisms, this momentum indicates that cryptocurrency is becoming an indispensable part of India's digital future.

The Asia-Pacific region is now one of the most active areas for cryptocurrency adoption globally, with countries taking markedly different yet equally influential paths. From India's dominance and South Korea's speculative maturity to Japan's acceptance of XRP and experiments in smaller markets, the Asia-Pacific region highlights the adaptability of cryptocurrency across different economic and cultural contexts. This diversity not only drives adoption but also positions the Asia-Pacific region as a bellwether for the development of global cryptocurrency applications in the coming years.

Related reading: How to tap into the Asian cryptocurrency market? An analysis of the differences among Asian countries, user behavior, and market characteristics.