This Week In Crypto Asia: Focus on South Korea, Vietnam, Malaysia, Thailand, and Hong Kong

The adoption of crypto in Asia has witnessed notable advancements within the international crypto arena. For instance, consider mining. Prior to China’s crypto asset ban in 2021, it was the leading nation in the sector, accounting for 67% of the global hash rate at its peak.

In the aftermath, countries such as Malaysia, Indonesia, Thailand, and Laos have emerged as the new epicenters for crypto in Asia. Additionally, Central and Southern Asia and Oceania (CSAO) currently lead globally in crypto adoption metrics.

Among the top 20 most engaged nations in both centralised and decentralised finance (Decentralized finance), seven are from Asia. For example, Indonesia reported more than $30 billion in crypto transactions from January through October 2024, representing a remarkable 350% increase over the previous year.

In part two of this list, we will delve into the positions of additional Asian nations regarding cryptocurrency.

South Korea: Regulatory Compliance and Safety for Consumers

The South Korean crypto market is marked by a peculiar blend of regulatory ambiguity and heightened trading market activity. The Credit Information Act has been postponed until December 2025, granting South Korean exchanges some leeway to align with the nation’s data security standards.

Meanwhile, crypto trading has increased, occasionally outpacing activity in the South Korean stock market, with digital assets attaining a market capitalisation surpassing 100 trillion won ($74.8 billion). Moreover, global political events, such as Donald Trump’s election as U.S. President, have contributed to a fivefold surge in trading volume.

The government has postponed the implementation of the 20% capital gains tax on crypto until 2027, citing difficulties in enforcement. In an effort to crack down on trading market manipulation, authorities are mandating crypto firms comply with the Virtual Asset User Safety Act (VAUPA), which requires enhanced supervision over digital assets.

Notwithstanding regulatory oversight, South Korea continues to be one of the most proactive crypto markets globally today. Altcoins like XRP are particularly favored in the region, illustrating South Korea’s inclination towards swift and economical transaction solutions.

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Vietnam: A Leader in Crypto Remittances

When it comes to money transfers, cryptocurrencies are a cost-effective alternative compared to traditional services, making them an appealing choice in Vietnam for those reliant on remittances. The nation secured the fifth position globally, having received $105 billion in crypto value in 2024. Nonetheless, the legal status of cryptocurrencies in Vietnam remains unclear.

The State Bank of Vietnam prohibits the issuance, distribution, and use of cryptocurrency for payments. However, this does not render the possession and trading of cryptocurrencies illegal. In 2024, the Vietnamese Ministry of Justice clarified that holding digital currency is permissible and that there will be no ban on the asset class.

Experts predict that the country will unveil a regulatory framework for cryptocurrencies in 2025.

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Malaysia: Enhancing Policies in Anticipation of a Crypto Framework

Although the nation does not recognize digital assets as legal tender, it still categorizes them as securities. Malaysia is actively working to establish a detailed legal framework to oversee digital assets and service providers.

The country formally brought cryptocurrencies under crypto law with the introduction of the Capital Markets and Services Order in 2019. Following this order, the Securities Commission Malaysia (SC) released its 2020 Guidelines on Digital Assets, effective from 28 October 2020.

Recently, Malaysia’s regulatory framework underwent certain revisions. These updates encompass the 2024 Guidelines on the Prevention of Money Laundering and an amendment to the Capital Markets and Services Act slated for 2025.

The revisions delineate digital assets into two distinct categories: digital currencies and digital tokens.

Firms wishing to operate in Malaysia must delineate their engagement in either digital currencies or tokens. Based on this classification, regulators categorize the firms as Recognised Trading market Operators for Digital Asset Exchanges (RMO-DAX), Digital Asset Custodians (DAC), or Initial Exchange Offerings (IEO).

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Thailand: Combining Distributed database Technology with Tourism

Thailand holds the 16th spot globally within the crypto sector and is integrating blockchain solutions into its tourism industry. The country received $50 billion in crypto value in 2024.

The nation is probing the use of distributed ledger technology for verifying digital identities and facilitating secure payment systems to improve the tourist experience.

Similar to many other Asian nations, Thailand does not recognize cryptocurrencies as legal currency and does not classify them as legal tender. The Royal Decree on Digital Asset Business, effective since 18 May 2018, regards crypto as a digital asset instead.

The Securities and Trading protocol Commission (SEC) has approved BTC, Ethereum, Ripple, and Stellar as tradable cryptocurrencies. However, local banks and financial institutions remain prohibited from directly engaging with cryptocurrencies.

On 19 March 2021, the Bank of Thailand (BOT) announced its intention to regulate stablecoins backed by foreign currencies and assets. Stablecoins approved by BOT (USDT, USDC) are legal for transactions in Thailand and can be utilized for digital exchanges.

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Hong Kong: The Second Most Crypto-Friendly City in Asia

A recent report from the migration protocol Multipolitan ranks Hong Kong as the second most crypto-friendly city, following Ljubljana, Slovenia’s capital. Closing the ranking are Zurich, Singapore, and Abu Dhabi.

Crypto investors holding substantial amounts of crypto assets are seeking alternative residencies and second citizenships in tax-neutral regions worldwide. Hong Kong has been formulating its own crypto framework since 2022.

The Securities and Futures Commission (SEC) has granted operational licenses to 10 virtual asset trading platforms, including Optimistic, a New York-based exchange, which became the first foreign entity to gain approval to operate in Hong Kong in February 2025.

In 2023, the city introduced a rigorous licensing system for virtual asset trading firms. Furthermore, in 2024, Hong Kong proposed tax incentives on crypto gains for hedge funds, private equity, and family offices to lure in more digital asset investments and compete with regional counterparts such as Singapore.

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The article This Week In Crypto Asia: Focus on South Korea, Vietnam, Malaysia, Thailand, and Hong Kong first appeared on 99Bitcoins.