Asia's Crypto Market: Will It Lead the Next Bull Run?
Key Takeaways
Asia is rapidly becoming a major force in the crypto market. Factors like potential economic stimulus from China and regulatory advancements in Japan, South Korea, and Thailand could spark a new rally.
Asia is taking the lead, driven by actions ranging from potential stimulus in China to regulatory approvals for stablecoins in Japan. This activity might be the starting point for a global crypto market resurgence.
China's Potential Impact on Altcoins
As China's economy faces challenges, the People's Bank of China is considering stimulus measures, possibly by September. Historically, liquidity injections from major economies like China have boosted risk assets, including altcoins.
Bitcoin's price has shown a strong correlation with global liquidity, even more so than traditional assets like the S&P 500 or gold. If China injects liquidity, it could stimulate demand for altcoins.
While China maintains restrictions on crypto, its economic influence is significant, with a substantial monetary base that can influence global capital flows. Even with the US Federal Reserve in the spotlight, the People's Bank of China's actions can impact markets.
China contributes nearly 20% to global GDP, making its central bank a key player in global finance.
South Korea's Crypto Initiatives
South Korean financial authorities are implementing a four-phase plan that includes proposals for spot Bitcoin ETFs, trials for KRW-pegged stablecoins, and plans to lift the 2017 ban on corporate crypto trading.
In the first half of 2025, nonprofits and public institutions were allowed to liquidate existing crypto holdings. In the second half, listed firms and qualified investors will begin trading on a trial basis.
The Korean won is the second-most traded fiat currency in crypto, accounting for $663 billion in volume year-to-date, approximately 30% of global fiat-to-crypto flows, according to Kaiko.
Nearly one in three Korean adults own crypto, twice the U.S. rate.
Major exchanges like Upbit and Bithumb are expanding. Upbit controls 69% of the domestic market share, while Bithumb has rebounded to 25%, with private shares surging 131% YTD ahead of its KOSDAQ listing.
Stablecoin development is led by banks, with major Korean institutions like KB Kookmin, Shinhan, Hana, and Woori preparing to issue KRW-backed tokens.
Japan's Focus on Stablecoins
Japan is entering the stablecoin market with its first yen-backed digital token. The Financial Services Agency is expected to approve JPYC, a stablecoin issued by JPYC Inc., for launch later this year.
The token is backed by bank deposits and government bonds, aiming for a 1:1 peg with the yen. Circle, the issuer of USDC, has invested in JPYC, suggesting potential global ambitions for Japan's stablecoin market.
JPYC will operate under Japan’s Payment Services Act, providing a solid legal framework. The token will be available on Ethereum, Polygon, and Shiden, supporting e-commerce payments and cross-border transfers.
Thailand's Crypto Tourism Initiative
Thailand is exploring crypto to attract tourists. The government is launching TouristDigiPay, a regulatory sandbox that allows foreign visitors to convert crypto to Thai baht for purchases via e-money providers, overseen by the Bank of Thailand and SEC.
This move addresses a decline in tourist arrivals. In H1 2025, Thailand saw 16.8 million visitors, down from 17.7 million the previous year. Specifically, visits from China fell by 34%, prompting officials to seek new ways to boost spending.
Tourists using the service will undergo KYC checks, with spending limits and restrictions on direct cash withdrawals. Further details are expected from Deputy PM and Finance Minister Pichai Chunhavajira soon.