Asia is a global proving ground for digital financial innovation, regulation, and adoption. With the world’s largest population—4.9 billion—significant capital heft, and a unique mix of emerging and emerged economies, the region benefits from a strong user base in tech, mobile phones, and public digital infrastructure. This foundation is driving demand for scalable, affordable financial technology services.

The continent has also become a global hub for digital asset markets, from Singapore’s institutional orientation to the Philippines’ retail-led activity. Demographics, capital flows, and policy experimentation offer lessons for markets worldwide navigating the next chapter of crypto integration.

Asia continues to rank among the most active regions globally for digital asset adoption. According to Chainalysis, the region accounted for six of the top 10 countries in the 2024 Global Crypto Adoption Index, driven by both transaction volume and decentralized finance activity.

Mobile-first behaviors, rising digital payment usage, and demand for alternative assets with a low barrier to entry have created fertile ground for blockchain-based financial products. According to the 2024 e-Conomy SEA Report, over 70 percent of Southeast Asia’s internet users are now digital financial services users, with digital payment penetration expected to reach $359 billion in gross transaction value by 2025. Migration within Asia drives demand for Web3-based remittances, particularly for stablecoins, which offer 24/7 availability, near-instant settlement, and lower costs. 

Blockchain startups in the Asia-Pacific region have attracted billions in venture capital funding. According to research by Galaxy Digital, Asia-based startups accounted for more than a quarter of the $3.5 billion in Q4 2024 crypto venture deals, led by Hong Kong (17.4 percent) and Singapore (9 percent).  
Meanwhile, regulatory engagement is maturing. Multiple jurisdictions across Asia have implemented licensing regimes for exchanges and custodians. Wealth creation and diversification are drawing high-net-worth individuals (HNWIs) and capital to places like Singapore and Hong Kong SAR, China, while remittances and play-to-earn applications drive grassroots demand in countries like the Philippines.

This interplay of regulation, digital infrastructure, and capital appetite is contributing to the dynamism and growth of Asian digital asset markets.
 

Singapore: Institutional by Design

Singapore is one of the world’s most sophisticated digital asset hubs, ranking at the top of the Henley & Partners Crypto Adoption Index.

Its regulatory framework, led by the Monetary Authority of Singapore (MAS), reflects a deliberate effort to build a reliable framework for institutional users. Under the 2019 Payment Services Act and its 2024 amendments, digital payment token providers face strict requirements around asset segregation, cold storage, and retail protections. Recent rules prohibit crypto purchases via credit card and ban staking and lending services for retail users. 

This spring, the MAS announced that exchanges operating in the country that served only overseas customers would have to close by June 30 unless they obtained the same licensing as exchanges serving domestic users, the Financial Times reports.

Even under a tight regulatory regime, retail engagement continues to grow. More than a quarter of the Singaporean population holds digital assets. There is also growing integration of stablecoins and merchant networks, such as Grab and Triple A’s 2024 partnership enabling crypto for everyday payments.

Singapore’s approach is pragmatic: foster innovation, facilitate investment, protect consumers, and keep systemic risk low. But with retail demand rising and usage shifting from speculation to payments, the city-state may soon need to reconcile its institutional orientation with a maturing domestic market.
 

Hong Kong: A Gateway Partially Reopened

Hong Kong has reentered the crypto race with a renewed focus on market development. Its reemergence as a global hub comes after years of legal ambiguity about digital assets in mainland China. While owning digital assets was never banned, in 2021 the Chinese government prohibited crypto trading and mining. Hong Kong recently launched the Virtual Asset Trading Platform Framework—a licensing regime that now governs exchange operations and token listings. 

This summer, Hong Kong’s government released its second policy statement on digital asset development, outlining plans to broaden the range of real-world assets eligible for tokenization. This comes after the Hong Kong Monetary Authority successfully conducted the world’s largest sovereign digital bond issuance. 

As a strategic outpost for China-facing capital, Hong Kong is positioning itself as a regulated conduit. Its appeal to HNWIs, hedge funds, and private equity is supported by tax incentives, including 2024 exemptions for institutional investors on crypto investment gains. This reopening of Hong Kong’s crypto markets has paid off—for now. Chainalysis reports an 85.6 percent year-over-year surge in crypto volume through Hong Kong, making it one of the fastest-growing hubs in East Asia. Licensing friction and political uncertainty remain headwinds, with markets watching for mainland policy shifts that could reshape Hong Kong’s ambitions.
 

Philippines: A Real-World Use Case for Retail Protections

The Philippines presents a bottom-up narrative, where crypto meets real economic utility. In the Philippines, over $35 billion in annual remittances—equivalent to 8.9 percent of GDP—are tied to money sent from abroad, according to the World Bank. The appeal of fast, cheap, and mobile-enabled payments is clear.
The country’s central bank, Bangko Sentral ng Pilipinas (BSP), licenses exchanges and regulates virtual asset service providers. In May 2024, the BSP approved Coins.ph to pilot PHPC, a stablecoin pegged 1:1 to the Philippine peso under its sandbox regime. Dollar- and peso-backed stablecoins are gaining traction to lower remittance costs. 

During the pandemic, the Philippines became a cautionary tale in crypto as a hub for play-to-earn Web3 gaming. Games like Axie Infinity went viral and briefly provided income for thousands of Filipinos before the market collapsed. 
Still, consumer appetite for digital assets remains, especially among young Filipinos. As crypto continues to permeate payments, the Philippines can serve as a case study in managing retail-led growth.
 

Conclusion: Who Gets to Ride the Rails?

Asia’s digital asset ecosystem is advancing rapidly, but not evenly. While countries like Singapore offer world-class regulatory certainty and institutional-grade infrastructure, retail-led markets like the Philippines face questions of sustainability, education, and risk mitigation. Hong Kong’s new framework positions it as a gateway to global crypto capital flows.

As other economies develop their own regulatory frameworks, Asia’s divergent paths offer a clear message. Policy should not only protect consumers and guard stability. It should also empower participation, catalyze innovation, and ensure financial technology benefits are broadly shared.
 

This insight is part of a series on global crypto adoption researched in partnership with the Milken Institute FinTech Program, Andreas Prana, Investigator and Subdivision Head of the Capital Market Enforcement Directorate, Indonesian Financial Services Authority, and the New York University School of Professional Studies Center for Global Affairs.