The Asia-Pacific region has become the world’s fastest-growing hub for cryptocurrency transactions, with on-chain activity surging despite inconsistent oversight and varied pathways to adoption, according to a new report.
Analysts say the trend reflects not only diverse use cases – from remittances and savings to gaming and speculative trading – but also regulatory uncertainty across the region, which could limit long-term potential even as momentum builds.
The report, released on Wednesday by blockchain analytics firm Chainalysis, found that during the 12 months ending June 2025, Asia-Pacific had emerged as the fastest-growing region for on-chain crypto activity, with a 69 per cent year-over-year increase in value received.
Total crypto transaction volume in the region grew from US$1.4 trillion to US$2.36 trillion, driven by robust engagement across major markets including India, Vietnam and Pakistan.
Monthly on-chain value received grew from about US$81 billion in July 2022 to peak at US$244 billion in December 2024, a threefold increase over 30 months. Transaction volumes have since remained robust at above US$185 billion per month through mid-2025.
In contrast to North America, where cryptocurrency activity is largely driven by institutional investment, Asia-Pacific’s growth is fuelled by broader, more retail-oriented demand, according to Chengyi Ong, head of Asia-Pacific policy at Chainalysis.
The report cites Japan, Indonesia, South Korea, India and Vietnam as among the nations spearheading transaction growth in the Asia-Pacific, fuelled by a combination of supportive policies to use cases.
“Mature markets like Singapore and Hong Kong remained relatively stable in terms of on-chain value transferred,” Ong said.
In the top market India, the digital currency is meeting a large diaspora’s remittance needs while young adults have embraced crypto trading as supplementary income, the report says.
“India has a large and technologically savvy population where young students experiment with blockchain and coding, and it also has unmet financial needs for income, investments, and cross-border transfers,” Ong said. “These are conditions in which cryptocurrency can gain traction.”
In South Korea, the second-largest Asia-Pacific market, trading in crypto is becoming as common as trading in shares, while new rules like the 2024 Virtual Asset User Protection Act are reshaping activity on major domestic exchanges, according to the report.
Vietnam, in third, showed crypto as everyday infrastructure for remittances, gaming and savings rather than speculation, the report added, while Pakistan added a fourth archetype with a young, mobile-first population embracing cryptos for remittances and investments.
Anndy Lian, a Singapore-based intergovernmental blockchain adviser, noted that key contributors to crypto’s rapid growth included adoption in emerging markets such as India, Pakistan and Vietnam for practical use, such as remittances, to provide a financial tool to unbanked populations – people without their own bank accounts – in the region.
“High mobile penetration and internet expansion have democratised entry, enabling retail investors to engage with centralised exchanges and decentralised protocols amid economic volatility,” Lian said.
Institutional interest in the digital currency has also risen, fuelled by progressive hubs like Singapore and Hong Kong which offer clearer fintech ecosystems, according to Lian, while emerging economies such as Indonesia and the Philippines also use crypto to boost financial inclusion.
Cryptocurrency, which works as a decentralised digital currency using blockchain technology to securely record transactions on a shared, unchangeable digital ledger, is being seen by observers as a means to transparently send money to remote populations with little access to banking.
The region’s uneven approach to regulation of cryptos, however, hampers its potential use, experts warn.
“Regulatory concerns in Apac’s [the Asia-Pacific’s] crypto landscape are pronounced, arising from inconsistent and fragmented frameworks that amplify risks while stifling balanced growth,” Lian said.
While Singapore provides comprehensive licensing for virtual asset providers, India’s levy of a 30 per cent tax on cryptocurrency gains means investors and businesses face uncertainty and systemic risks of over-regulation, according to Lian.
Experts say India’s approach to cryptos stems from anti-money laundering and countering terrorism financing, but the country would gain from broader regulation dealing with consumer protection, financial prudence and market conduct.
Lian noted that there were concerns among policymakers as the Asia-Pacific region had emerged as a hotspot for crypto scams and frauds globally.
“Broader issues include money-laundering vulnerabilities in less-regulated markets like the Philippines or Vietnam, where rapid growth exposes unbanked users to exploitation,” he said.
Crypto rules vary across the region, from rigorous oversight in Japan to light-touch regulation in Indonesia.
Lian warned, however, that the lack of uniformity risked regulatory arbitrage – exploiting differences or gaps in regulations across different jurisdictions – and hampered cross-border compliance,
He called on policymakers to address these issues to mitigate threats without curbing the region’s crypto potential, noting that policy coordination “is essential to streamline crypto transactions, reduce fragmentation, and harness the region’s growth potential sustainably”.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
