Tiger Research: Analysis of the status of bulk investors in nine major markets in Asia

The present report is submitted byTime ResearchThis post is part of our special coverage Syria Protests 2011While the encrypted currency market is growing rapidly, the number of bulk investors is declining. We analysed the access thresholds for the largest markets in the nine potential user groups in Asia, as well as the responses of exchanges。

1. Market growth but the retail sector contracted

SINCE THE UNITED STATES APPROVED THE SPOT ETF IN 2024, INSTITUTIONAL CAPITAL HAS ARRIVED. BITCOIN WAS INCLUDED IN THE BALANCE SHEET. THE EXCHANGE HAS ALSO BEGUN TO MONETIZE LARGE UNITED STATES SHARES. BARRIERS BETWEEN TRADITIONAL FINANCE AND ENCRYPTED MONEY ARE BREAKING DOWN ON BOTH SIDES. MARKET SIZE HAS INCREASED SIGNIFICANTLY。

Retailing, however, is going in the opposite direction. Retail transactions and users are declining in all countries。

During the previous cycle, the high-yielding kibbutz attracted a large number of new users. But this drive no longer exists. The currency is less volatile than before. The market share of bitcoin has reached about 60 per cent. There is currently no mechanism to attract new users, only existing ones。

However, major exchanges are adopting a range of strategies to attract new users。

The exchange refers to these potential investors as “encrypted currency curiouss”: they know and are interested in encrypted currency, but have not yet invested。Given the size of the population and Internet penetration in major Asian countries, the number of potential investors in this sector is as high as tens of millions. As existing users grow into bottlenecks, encrypted currency curiosity will be a key factor in determining the next stage of industry development。

Volatility is the most frequently cited obstacle. Volatility, however, is only a symptoms, not a root cause. There is also volatility in equities, but people still buy them because of government regulation, the protection of funds and the perception of society as a legitimate investment. And the encrypted currency lacks these three points。

Five core barriers stand in the way of those interested in encrypted money:

• Regulatory uncertainties:Legal protection is not clear. Some States have explicit provisions, while others do not。
• Security risk:Fears of hacking of the exchange, disappearance of funds or freezing of assets。
• Tax burden:Tax rates are unpredictable and policies may change。
• Accessibility:It's hard to know where and how to start. Pledges, de-centre exchange transactions and other complex mechanisms have increased resistance。
• Social awareness:Encrypted currency transactions are considered to be “gay”。

Each of the eight Asian markets analysed in this report faces different bottlenecks。

2. Analysis of interest in encrypted currency in major markets in Asia: the obstacles facing countries vary

2.1 North-East Asia: Korea, Japan, Hong Kong

Comparison of North-East Asian countries

North-East Asia is one of the fastest-growing regions of encrypted currency regulation. These three markets either have a specific legal framework or licensing system in place or are about to be launched。

BUT THE DIRECTION OF REGULATION AND THE NATURE OF THE MARKETS ARE DIFFERENT. KOREA HAS A STRONG SPECULATIVE CULTURE. JAPAN DEMONSTRATES A UNIQUE TRADING STRUCTURE CENTRED ON XRP. HONG KONG, FOR ITS PART, IS COMMITTED TO BUILDING A GLOBAL HUB CENTRED ON INSTITUTIONAL INVESTORS。

2.1.1. Korea: number of users ranks second, but the number of users shows a downward trend

Korea Retail Encrypted Currency Investment Environment: Five Key Indicators

In Asia, Korean legal and encrypted currency are the most active。

In the second half of 2025, Korean dollar transactions reached $663.0 billion, almost the same level as global dollar transactions, the second highest in the world. The number of Korean traders eligible for trade is 11.13 million, or 21.5 per cent of the total population。

Korean users have shown a strong willingness to deal in encrypted currency. However, while the number of users increased by 11 per cent over the previous period, the average daily transaction volume and the French currency value declined. Stock markets are becoming more attractive investment options, and interest in encrypted currency is weakening。

Users have also moved to foreign exchanges to obtain unlisted tokens and leverage products. An encrypted currency tax scheme will be implemented next year. As the proposed rules differ from the current equity tax treatment, there is still a possibility of abolition, but if implemented as planned, transaction demand is expected to decline further。

Nevertheless, Korea ' s position as the world ' s second largest trading market, coupled with the positive investment enthusiasm of South Korean traders, has created an environment that is difficult to match in other Asian markets. If encrypted money achieves the same tax treatment as equities, and exchanges adopt a diversified investment strategy, Korea’s well-developed infrastructure will make it the fastest market for encrypted money investments。

Japan: the safest and most expensive

Japan ' s investment climate for retail encrypted currency: five key indicators

Japan is the safest encrypted currency market in Asia and the highest price。

In 2014, Japan became the first country to establish an exchange licensing system after the hacking of the Mt. Gox Exchange, which lost about 850,000 bitcoins. This lesson has shaped the current system of exchange licence plates in Japan. The exchange must store more than 95 per cent of the customer ' s assets in cold wallets and store all the customer ' s French currency in completely segregated trust accounts。

In Japan, there are 32 exchanges registered by the Financial Office, with a cumulative number of 12 million accounts and a total of 5 trillion yen in customer deposits. The signal of “safe access” to the Japanese market is stronger than in other parts of Asia。

But once they enter the encrypted currency market, taxes follow. Currently, the proceeds of encrypted currency are classified as other income, with a maximum tax rate of 55 per cent. The earning of 100 million yen means paying a tax of 55 million yen. And the same share earnings, the tax rate is about 20 per cent, or 20 million yen. The difference is 2.7 times. The safest markets in Asia are the highest taxes in Asia。

This contradiction is a central obstacle for Japanese encrypted currency lovers. While confidence in security is important, security has a price. You have access to encrypted money, your money is protected, but you may end up with nothing。

ITS MARKET STRUCTURE IS ALSO UNIQUE. FROM JULY 2024 TO JUNE 2025, XRP TRANSACTIONS ON THE EXCHANGE, VALUED IN JAPANESE YEN, TOTALLED APPROXIMATELY $21.7 BILLION, 4.6 TIMES MORE THAN BITCOIN ($4.7 BILLION). JAPAN IS THE ONLY MARKET IN THE WORLD WHERE THE TRADE IN A SINGLE MOUNTAIN CURRENCY EXCEEDS THE AMOUNT OF BITCOIN。

This is the result of a partnership between the SBI Holdings and Ripple Strategy. In Japan, XRP is not seen as speculative assets, but as encrypted assets with practical utility. In a saving-oriented, speculative society, the encryption currency is based in a very different way than in Korea。

However, the social spread of encrypted currencies remains slow. Only 7.3 per cent of individual investors with investment experience hold encrypted assets. By contrast, businesses are actively embracing encrypted currency. Metaplanet, known as the Asian Strategy, is increasing bitcoin as a strategic asset, while SBI Holdings plans to list BTC+XRP double asset encryption ETF on the Tokyo Stock Exchange。

THE KEY VARIABLES ARE THE TWO REFORMS THAT CAME INTO EFFECT IN APRIL 2026. ONE REFORM RECLASSIFIED ENCRYPTED ASSETS UNDER THE FINANCIAL INSTRUMENTS AND TRANSACTIONS ACT (FIEA). ANOTHER REFORM HAS HARMONIZED THE TAX RATE ON FINANCIAL INCOME TO 20 PER CENT, THE SAME AS THE EQUITY RATE. IF THESE TWO REFORMS COME INTO FORCE SIMULTANEOUSLY, THE GREATEST OBSTACLE FACING JAPANESE ENCRYPTED CURRENCY LOVERS WILL CEASE TO EXIST。

Now that these changes have been announced in advance, there's no reason why those interested in encrypted money should now risk up to 55 per cent of their taxes to enter the field。

2.1.3. Hong Kong: triple barriers have been removed, but access remains blocked

Hong Kong Retail Encrypted Currency Investment Environment: Five Key Indicators

Hong Kong has done better than any other market in Asia in removing key barriers to the attraction of encrypted money. Control is clear, safety standards are high and there is no tax burden. No other Asian market can satisfy these three requirements at the highest level at the same time。

Since 2023, the CSRB has implemented the VAT licensing system. In February 2025, the CVM issued the ASPIRERE road map outlining future regulatory directions. In August of the same year, the CVM announced a mechanism for the regulation of stable currency, with the first licence plate expected to be issued in early 2026。

THE EXCHANGE MUST STORE MORE THAN 98% OF ITS CUSTOMER ASSETS IN COLD WALLETS. EXCHANGES ARE REQUIRED TO PURCHASE COMPULSORY INSURANCE AND UNDERGO ANNUAL CYBERSECURITY AUDITS. ENCRYPTED CURRENCY IS NOT TAXED. IN 2024, HONG KONG APPROVED THE FIRST BITCOIN/ETHERDORF CASH IN ASIA。

Regulatory, security and tax issues were largely resolved. The remaining issue is accessibility。

As of February 2026, there were 12 platforms with license plates issued by the HKSRC, but their services were mainly aimed at professional investors with assets of HK$ 80 million (approximately 1.3 billion won) and above. Unlike the immediate purchase of downloadable applications by Korean users, the Hong Kong regulatory system does not allow this practice. Hong Kong has the highest regulatory quality in Asia, but the threshold for entry into this regulatory framework is low。

Social awareness occupies a unique position. Because of the city's status as a global financial centre, there is much less bias against “ gambling” than in Korea or Japan. But it is widely accepted that encrypted currency is a “field of professionals”. While there is no social bias, there is also a lack of social identity. This psychological distance is so great for those interested in encrypted money that it is difficult for them to produce the idea that perhaps I should try。

The road to change is opening. The CVM has introduced a shared liquidity framework that allows licensed platforms to access offshore order books. The pledge service has been conditionally approved. The dealer and trustee licensing system is planned to provide legislative advice in 2026. Alternative products and channels are expanding。

To sum up, Hong Kong has already addressed three of the five obstacles, but the fourth — access — negates the advantages of the other three. No matter how safe and tax-free, nothing is worth it if it is not accessible. The task in Hong Kong is to widen the door and make the trust that it has built felt。

2.2 South-East Asia: Singapore, Thailand, Indonesia, Viet Nam, Philippines, Malaysia

Comparison options for South-East Asian countries

2.2.1. Singapore: All the conditions have been met, but 65 per cent of those who chose not to enter the country

Singapore Retail Encrypted Currency Investment Environment: Five Key Indicators

Of the eight markets covered by the report, Singapore has performed most evenly on all five barriers (regulation, security, taxation, accessibility and social awareness) and none is significantly weak。

THE SINGAPORE FINANCE AUTHORITY (MAS) OPERATES THE MOST UNIFORM LICENSING SYSTEM IN ASIA. IN JUNE 2025, MAS EXTENDED LICENCE REQUIREMENTS TO OPERATORS SERVING ONLY OVERSEAS CUSTOMERS. EXCHANGES HAD TO KEEP CUSTOMER ASSETS IN A TRUST ACCOUNT AND SINGAPORE HAD COMPLETED ITS MUTUAL ASSESSMENT WITH THE FINANCIAL ACTION TASK FORCE (FATF). SINGAPORE DOES NOT LEVY AN ENCRYPTED CURRENCY TAX。

The practical application of encrypted currency is expanding. Grab has been integrated into the XSPD payment function. The Singapore Finance Authority (MAS) has experimented with the monetization of government bonds and three banks have tested interbank loans based on the Central Bank’s digital currency (CBDC). Within the regulatory framework, encrypted money is gradually penetrating into the everyday financial sphere。

it is logical that there should be no reason for those interested in encrypted money to remain outside. however, the data present a very different picture. singapore has a record high of 94 per cent awareness of encrypted currency, but the actual holdings are only 29 per cent & nbsp; the remaining 65% are interested in encrypted money。

This is not unknown to 65 per cent of the population. They have knowledge, have access to information and do not face any social discrimination, but still choose not to participate. The biggest obstacle mentioned was market volatility (68 per cent), while the primary criterion for choosing an exchange was “confidence and security” (65 per cent), even higher than the fees。

Singapore is a sobering example. Even if almost all the institutional barriers were removed, 65 percent of the people were excluded from the encrypted money market. Other Asian markets should be careful that removing barriers alone does not lead to the transformation of those interested in encrypted currency。

2.2.2. Thailand: Government-led market opening

Thailand ' s Retail Encrypted Currency Investment Environment: Five Key Indicators

In Asia, Thailand is the market where the Government sends “accessible” signals most directly。

In January 2025, the Government announced a five-year exemption from personal income tax on proceeds of encrypted currency transactions conducted through licensed transactions. In the same month, the Government allowed public and private funds to invest in encrypted currency. Since then, the Government has further reduced tax revenues, opened up institutional capital channels and issued digital assets。

THAILAND HAS A NETWORK OF ABOUT 13 MILLION USERS OF ENCRYPTED CURRENCY, REPRESENTING ABOUT 18 PER CENT OF THE TOTAL POPULATION. THE EMERGENCY ORDINANCE ON DIGITAL ASSETS OPERATIONS, ENACTED IN 2018, PIONEERED THE ESTABLISHMENT OF A LEGAL FRAMEWORK WITHIN ASIA AND THE SECURITIES AND EXCHANGE COMMISSION OF THAILAND (SEC) HAS GRANTED LICENCES TO NINE EXCHANGES. THE AMOUNT OF STABLE CURRENCY TRADED IN THAI BAHT REACHED $9.4 BILLION, AFTER THE KOREAN WON IN THE ASIA-PACIFIC REGION. THIS IS NO LONGER JUST PERMISSION, BUT ACTIVE OUTREACH。

Regulatory enforcement takes a two-pronged approach. In April 2025, the offshore regulatory authority blocked five unauthorized foreign platforms, including Bybit and OKX. In July of the same year, the Agency allowed securities companies to provide investment token services and open consultations on encrypted derivatives. The strategy is to combat illegal acts and to expand the scope of legality。

The Government also plays an important role in shaping social awareness. The former Prime Minister, Mr. Shinawatra, had publicly stressed the need for encrypted currency regulation and had positively evaluated the pilot project on encrypted currency payments in Phuket. This led to the realization that “If governments exempt them from taxes, then it must be acceptable.” The opening of brokering channels to enable existing equity investors to invest in encrypted currency through familiar channels would also help facilitate the transformation of encrypted currency。

Another key element is missing: payment. Since 2022, the use of encrypted currency as a means of payment has been prohibited. Tourist Digipay Sandbox allows foreign tourists to convert encrypted currency into Thai baht, and the Bank of Thailand operates an independent Thai baht stability box. However, Thai consumers still lack daily experience of encrypted currency payments。

Thailand ' s most notable feature is that the Government is removing top-down barriers in the area of encrypted currency: tax exemptions, the issuance of G-Token, open institutional channels and the introduction of derivatives. Such proactive government initiatives are rare in Asia. The next task is to change the encryption currency from a “trading asset” to a “consumer asset”. The lifting of the payment ban may be an important turning point in Thailand's encrypted currency。

Indonesia: from commodities to financial assets

Indonesia ' s retail and encrypted currency investment climate: five key indicators

In January 2025, Indonesia changed the nature of the encrypted currency. Regulatory authority was transferred from the Superintendence of Commodity Futures Transactions (Bappebti) to the Financial Services Authority (OJK), and the classification of encrypted currency was changed from “commodity” to “digital financial assets”. This is not a simple change of jurisdiction. OJK supervises banks, insurance, securities and pension funds. The status of encrypted currencies has been raised to the same level as equities and bonds。

The listing structure of the encrypted currency has evolved from a list of encrypted assets determined by the central exchange (Bourse) to meet the listing requirements. In addition, measures have been introduced to make security staffing mandatory, to prohibit the use of loans as a source of funding and to strengthen consumer and data protection obligations. The increased regulation also shows that the encrypted currency is now a “government-approved financial product”。

The uncertainty of the transition period is inevitable. The transition period will last until January 2027, during which there may be gaps in regulatory interpretation. Similar to Thailand, the currency law prohibits the use of the guilder as the only legal currency。

INDONESIA ' S POTENTIAL LIES IN ITS LARGE POPULATION BASE. BY 2025, INDONESIA WILL HAVE A POPULATION OF 280 MILLION, BUT THE PENETRATION OF ENCRYPTED CURRENCY ACCOUNTS IS STILL ONLY A SINGLE DIGITS. THE REST OF THE POPULATION REPRESENTS A POTENTIAL GROUP WITH A STRONG INTEREST IN ENCRYPTED MONEY IN THE MARKET. TRANSFERS FROM THE INDONESIAN FINANCIAL SERVICES AUTHORITY (OJK) ARE THE STRONGEST INSTITUTIONAL SIGNAL SENT TO THIS SEGMENT OF THE POPULATION THAT THE ENCRYPTED CURRENCY HAS BEEN “RECOGNIZED AS A FINANCIAL PRODUCT”. IN ORDER FOR THIS SIGNAL TO BE TRANSLATED INTO THE ACTUAL USE OF ENCRYPTED CURRENCY, THE TRANSITION PERIOD MUST BE SUCCESSFULLY COMPLETED。

THE FUTURE DIRECTION OF THIS MARKET, WITH A POPULATION OF 280 MILLION, DEPENDS ON THE STABILITY OF THE INDONESIAN FINANCIAL SERVICES AUTHORITY (OJK)。

2.2.4. Viet Nam: population pre-empts and supervision lags

Viet Nam ' s retail and encrypted currency investment environment: five key indicators

The situation in Viet Nam is contrary to most markets。Typically, supervision precedes that of users. But in Viet Nam, where people are the first to enter the encrypted currency market, regulation is only beginning to keep pace。

For Vietnamese users, encrypted money has become closely linked to daily finance. It penetrates daily life through remittances, games, savings and other channels。

To this end, the Government passed the Digital Technology Industry Act in Congress in June, formally recognizing digital assets as civil law property, granting them ownership, transfer, inheritance and legal protection. In addition, the Government launched a five-year (2025-2030) secure asset market pilot scheme in September 2025. This marks a direct transition from a long-term vacuum to a fully developed framework。

HOWEVER, THE INSTITUTIONAL FOUNDATION IS STILL IN ITS INFANCY. INVESTOR PROTECTION MEASURES ARE CURRENTLY APPLIED ONLY TO A LIMITED EXTENT TO REGULATE SANDBOXES, AND DETAILED RULES ON EXCHANGE SAFETY STANDARDS AND ASSET SEGREGATION OBLIGATIONS ARE STILL BEING DEVELOPED. THE WITHDRAWAL FROM THE FINANCIAL ACTION TASK FORCE (FATF) ASH LIST CONTINUES TO FACE CHALLENGES; INTERNATIONAL COOPERATION HAS ALSO BEEN CONSTRAINED DURING THE GREY LIST PERIOD。

Access to exchanges is changing rapidly. As of early 2026, the Ministry of Finance was leading the pilot licensing of some five exchanges. Bank subsidiaries, including Techcombank, VP Bank and LP Bank, and securities subsidiaries such as VIX Security (VIXEX), are leading the process. The minimum capital requirement was set at $400 million, which raised the threshold of access and ensured the financial stability of approved operators。

Previously, off-shore platforms such as Money Ann dominated the market, but the shift to local card exchanges was likely to take place. For the first time in a market that had previously been widely available outside the regulatory framework, there is now a regulated access。

Viet Nam ' s five main barriers indicators show that social acceptance is extremely high, while other areas are relatively lagging behind, and this extreme imbalance is critical. But the direction of this imbalance is crucial. Viet Nam does not need to promote universal markets through regulatory measures; rather, Viet Nam has a high prevalence rate and regulation must keep pace. If regulation of sandboxes works smoothly and detailed rules are in place, the system may be transformed as quickly as it already exists。

2.2.5. Philippines: A market for encrypted money built on daily life rather than on investment

Philippine Retail Encrypted Currency Investment Environment: Five Key Indicators

In eight markets, the Philippines understands the concept of “encrypted money curiosity” most differently from other markets. In other markets, “encrypted money curiosity” refers to people interested in encrypted money but not yet involved. And in the Philippines, more people are already using encrypted currency。

THE SPREAD OF ENCRYPTED MONEY DOES NOT STEM FROM INVESTMENT, BUT FROM EVERYDAY LIFE. DURING THE EPIDEMIC, THE P2E GAME BECAME THE FIRST STEP FOR YOUNG PEOPLE TO GAIN ACCESS TO ENCRYPTED CURRENCY, AND THE LARGEST GLOBAL DEMAND FOR REMITTANCES FROM ABROAD CONTRIBUTED TO THE DEVELOPMENT OF REMITTANCE CHANNELS BASED ON STABLE CURRENCIES. ENCRYPTED MONEY PLAYS THE ROLE OF INFRASTRUCTURE RATHER THAN INVESTING IN ASSETS。

SOCIAL RECOGNITION WAS SUFFICIENT, AND THE PROBLEM WAS TO ESTABLISH INSTITUTIONAL PROTECTION ON IT. THE CENTRAL BANK OF THE PHILIPPINES (BSP) HAS FROZEN THE ISSUANCE OF NEW VASP LICENCES SINCE SEPTEMBER 2022. ALTHOUGH THE FREEZE WAS EXTENDED TO SEPTEMBER 2025, ONLY 9 VASPS CURRENTLY EXIST. THE PHILIPPINE SECURITIES AND EXCHANGE COMMISSION (SEC) INTRODUCED THE CAPITAL SUFFICIENCY RATIO REGULATORY FRAMEWORK (CASP) IN JULY 2025, INTRODUCING MINIMUM CAPITAL, ASSET SEGREGATION AND MARKETING REQUIREMENTS, BUT THE FRAMEWORK IS STILL AT AN EARLY STAGE。

Security risks are the most significant weakness of the market. The United States Securities and Exchange Commission has even required the app store to lower unregistered platforms, but social media fishing fraud remains rampant. In market structures that replace trust with practical use, if institutional protection measures fail to keep pace, a security incident could completely destroy that trust。

Positive developments are under way. The Philippines has been removed from the Financial Action Task Force (FATF) ash list. Union Bank and GoTyme Bank have been granted a stay of approval and have provided encrypted currency transactions in bank applications. A strategic bill on the Bitcoin Reserve has been submitted to the House of Representatives. President Marcos ' open support for digital innovation has also laid the foundation for its political legitimacy。

THE SITUATION IN THE PHILIPPINES IS SIMILAR TO THAT IN VIET NAM, WHICH SHOWS A HIGH LEVEL OF SOCIAL ACCEPTANCE AND A LOW LEVEL OF REGULATION AND SECURITY, ALTHOUGH OF A DIFFERENT NATURE. VIET NAM IS IN THE PROCESS OF ESTABLISHING NEW INSTITUTIONS FROM SCRATCH; THE PHILIPPINES HAS CLOSED THE DOORS OF EXISTING INSTITUTIONS. INSTITUTIONAL TRUST CAN BE BUILT ON EXISTING PRACTICAL APPLICATIONS IF THE VASP BAN IS LIFTED AND IF THE UNIVERSAL APPLICATION SERVICE PROVIDER FRAMEWORK IS IMPLEMENTED。

2.2.6. Malaysia: Regulatory options are inadequate

Philippine Retail Encrypted Currency Investment Environment: Five Key Indicators

Malaysia is a rare example of a market that has not developed despite the existence of a regulatory framework。

SINCE 2019, THE SECURITIES COMMISSION (SC) HAS ISSUED DAX LICENCES AND IMPLEMENTED BASIC PROTECTIVE MEASURES, INCLUDING KYC/AML, ASSET SEGREGATION AND PERIODIC AUDITS. THERE IS CURRENTLY NO SECRET CURRENCY TAX. ITS INSTITUTIONAL FRAMEWORK IS THEORETICALLY SOUND。

The problem is that the existing mechanisms can do too little. There are currently only 6 DAX exchange operators registered with the Malaysian Securities Commission, and the number of tradable coins is among the lowest in Asia. Decentralised finance (DeFi) and derivatives are not yet included in the regulatory framework. In 2024, the total value of DAX transactions was 13.9 billion kibbutz (approximately $3.1 billion), a 2.6-fold increase over the same period, but the absolute value is still small compared to Thailand or Indonesia。

WHEN THE OPTIONS ARE LIMITED, THE USERS TURN TO OTHER PLATFORMS. ACCORDING TO THE GERMAN SECURITIES AND EXCHANGE COMMISSION (SC), 996 COMPLAINTS RELATED TO UNREGISTERED DAX PLATFORMS HAVE BEEN RECEIVED SINCE 2019. INVESTORS SEEKING BROADER TOKENS AND PRODUCTS ARE MOVING TOWARDS UNREGISTERED OFFSHORE PLATFORMS. WHILE REGULATION PROVIDES PROTECTION, IT ALSO NARROWS MARKET OPTIONS, LEADING TO FINANCIAL OUTFLOWS TO UNREGULATED AREAS。

THE KOREA SECURITIES COMMISSION IS AWARE OF THIS ISSUE AND ANNOUNCED THE REVISED DAX FRAMEWORK IN JUNE 2025. AT THE SAME TIME, THE COMMISSION IS WORKING TO LIBERALIZE THE LISTING FRAMEWORK IN ORDER TO SHORTEN THE PROCESS OF LISTING NEW CURRENCIES AND TO STRENGTHEN CAPITAL ADEQUACY AND ASSET SEGREGATION REQUIREMENTS. THE ESTABLISHMENT OF THE ADVISORY COMMITTEE ON DIGITAL ASSETS AND ARTIFICIAL INTELLIGENCE HAS ALSO BEEN APPROVED BY THE OFFICE OF THE PRIME MINISTER, INDICATING THAT ITS ACTIONS HAVE BEEN EXTENDED TO THE STRATEGIC, NOT MERELY REGULATORY, LEVEL OF INDUSTRY。

FOR THOSE INTERESTED IN ENCRYPTED MONEY IN MALAYSIA, THE MARKET “HAS THE POTENTIAL TO DEVELOP BUT IS NOT ATTRACTIVE ENOUGH”. REGULATION PROTECTS MARKETS, BUT ALSO LIMITS THEIR GROWTH. THE POSSIBILITY OF RAISING THIS CEILING UNDER THE REVISED DAX FRAMEWORK IS OF CONCERN TO MALAYSIA。

How the exchange attracts users interested in encrypted currency

The next question is how the global encrypted currency exchange tries to access these different markets. As noted above, Asia is not a single market. Regulatory, investor protection levels and social perceptions vary from country to country. A single strategy cannot be applied across Asia。

The challenge for global transactions does not stop at “how to increase users”. The key is how to provide what is available to users interested in encrypted money in each market and how to provide these services。

3.1. Access to licences: market survival Rights

The first task is to ensure the right to operate in the market. With improved regulatory systems across Asia, unlicensed operations have become almost impossible。

This transformation has already taken place in various countries. Thailand banned 5 unauthorized offshore platforms in 2025. Singapore even requires that operators providing services to overseas customers obtain local permits. The words “respect or be banned” have changed from slogans to reality。

The trading strategy can be broadly divided into two approaches。

The first is based on the expansion of the volume of transactions: obtaining licences in as many jurisdictions as possible to maximize global coverage. Français has more than 20 licence plates, OKX based on the MiCA agreement covering 30 EU countries, which are examples of this model. The number of licences is itself a guarantee of market access。

The second point is strategic focus: building compliance as a cornerstone of trust in a given market. Coinbase ' s subsidiaries in the United States have been registered in FINRA, thereby creating a brand image of compliance, which is the best example. HTX is also systematically consolidating its position in strategic locations, including Australia, Lithuania and Dubai。

However, markets requiring registration under domestic law, such as in Korea and Japan, do not apply to global licences. Virtual asset service providers (VASP) are required to register under the Special Financial Transactions Act; Japan is required to register under the Financial Office (FSA). There are few precedents except for the acquisition of Gopax。

At the same time, exchanges that fill regulatory gaps in Asia can take the lead in gaining a favourable position for growth in the region。

IN ANY CASE, EXCHANGES MUST CONTINUE TO SEEK MARKET ACCESS. THE VERY FACT THAT I AM TRADING IN A LICENSED EXCHANGE LOWERS THE PSYCHOLOGICAL THRESHOLD FOR THOSE INTERESTED IN ENCRYPTED MONEY. THE SAME LOGIC APPLIES TO THAILAND ' S PROVISION OF A FIVE-YEAR EXEMPTION PERIOD FOR TRANSACTIONS THAT ARE ONLY LICENSED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC). TODAY, BEING WITHIN A REGULATORY FRAMEWORK IS IN ITSELF A COMPETITIVE ADVANTAGE。

3.2. Transparency and security: Can I trust them to keep my money

Exchange security comparisons

IT IS NOT ENOUGH TO GET A LICENSE. FTX IS THE ONE THAT COLLAPSED UNDER SUPERVISION. IF ENSURING THE RIGHT TO LIFE IS THE FIRST STEP, THE NEXT STEP IS TO ANSWER THE QUESTION: “CAN I TRUST THIS EXCHANGE AND GIVE IT MY MONEY?”

When people interested in encrypted money are asked this question, the most immediate answer that the exchange can provide is transparency. Following the collapse of FTX, the entire industry began to compete for a reserve certificate (PoR). Most mainstream exchanges now disclose the status of reserves on a monthly basis. PPR disclosures themselves have become industry standards。

The difference is in the method. The mere display of numbers is quite different from the provision of figures in a verifiable form. Some institutions use zero-knowledge certification (e.g. zk-STARK) so that users can independently validate it. Others establish financial transparency in conjunction with third-party audits or the use of the quarterly reports of the United States Securities and Exchange Commission (SEC)。

SECURITY FOLLOWS THE SAME LOGIC. THE PROPORTION OF COLD WALLET STORAGE, THE RATE OF ADOPTION OF MPC TECHNOLOGY AND THE USE OF THIRD-PARTY HOSTING SOLUTIONS ARE BECOMING KEY FACTORS IN DISTINGUISHING BETWEEN DIFFERENT ENCRYPTED CURRENCIES. THOSE INTERESTED IN ENCRYPTED MONEY SHOULD FOCUS NOT ON “WHETHER OR NOT A SECURITY INCIDENT HAS OCCURRED”, BUT ON “WHETHER MY ASSETS CAN BE PROTECTED IN THE EVENT OF A SECURITY INCIDENT”。

Indeed, few large exchanges have ever been hacked. Some exchanges compensate users in full through the Internal Security Fund; others shut down damaged networks and restarted them. In some cases, security incidents have instead prompted the exchange to strengthen the security system。

NATIONAL SECURITY LEGISLATION IS REINFORCING THIS TREND. THE JAPANESE FINANCIAL AGENCY IS INTRODUCING A MANDATORY LIABILITY RESERVE SYSTEM. THE CSR HAS INTRODUCED MORE THAN 98 PER CENT OF COLD WALLET STORAGE REQUIREMENTS AND MANDATORY VASP INSURANCE. THE INFORMATION VOLUNTARILY DISCLOSED BY THE EXCHANGE IN THE PAST IS BECOMING THE MINIMUM REQUIREMENT FOR REGULATORY REQUIREMENTS。

It should be noted that the PoR, the Protection Fund and the security framework summarized in the table reflect only specific points of time. Even if the volume of transactions had declined significantly, the sustainability of the monthly POR disclosures and the integrity of the protection fund were critical。

3.3 Education and localization: reaching users in local languages and currencies

Education and localization: local languages, local currency

Even when regulatory and security measures are in place, those interested in encrypted currency will not open the application for trading without media exposure and education. Exchanges are addressing this problem through localized education。

However, the content of education is no longer a success story. Each large trading platform has a “learning and making money” project, college and research department. The real difference lies in the place and manner of delivery of the content。

The global exchange is moving in two directions. The first direction is to deepen online content: hundreds of hierarchical educational modules, university affiliation certification projects and the “learning by learning to earn” model, which creates the first experience of having a encrypted currency by rewarding learners with a small amount of it。

The second scenario is offline. The Blockchain4Youth of Bitget is a leading example, and as of 2025 the project will provide hands-on introductory guidance in more than 12 countries/regions, including NFT foundries, stabilization currency payments trial and wallet creation。

Local exchanges are more deeply integrated into the domestic market. Upbit invests 10 billion won to establish an investor protection centre, providing free standardized digital asset materials and a White Paper in Korean. In 2025, Upbit launched the project “Up Class” for the education of older persons, which attracted the participation of more than 1,200 older persons, after which the project was extended to youth education projects in five universities throughout the country。

But even the best education is meaningless if users do not get it in their own currency and language. Asian countries have different languages, currencies and regulations. A single English interface does not cover all these markets。

As a result, the strategy of the global exchange is moving towards localization: the simultaneous promotion of local languages, local channels of payment in French and product configurations that are consistent with local regulations. In addition, the practice of establishing entities or partnerships in more than 12 countries and working with research institutions in specific markets to provide localized insights is expanding。

Now, before the next round of cattle comes

An encrypted currency cow market can trigger large-scale conversions of people interested in encrypted money. In 2021, tens of millions of people in Asia opened accounts not because of higher levels of education but because of higher prices. There is no infrastructure to replace the attractiveness of cattle markets. To deny that, the strategy will be empty-minded。

But the vast majority of those who entered in 2021 left when the price fell. Education is stagnating, communities are silent and the media has shifted. If no change is made, the cattle market will continue to attract and introduce users. This is not user-led, but a frequent turnover of personnel。

The stock market will collapse. However, issuers continue to operate as usual, rebalance their portfolios and guide clients through periods of downturn. Even in Bear City, new accounts will remain open. There is no similar mechanism in the encrypted currency market。

At the same time, the pattern of competition is changing. United States spot bitcoin ETF has been launched, Japan SBI encrypted currency ETF is in preparation, Hong Kong spot ETF is on line and Thai coupons are allowed to invest in tokens. TradFi directly into the market. Users interested in encrypted money can now purchase bitcoin through the coupons application they have already used. TradFi has the advantage not of having more information, but of providing familiar user experience。

This raises the fundamental question of what an exchange can offer as traditional finance (TradFi) expands to the realm of encrypted money. More extensive global markets for tokens, DeFi access, chain experience, and all-weather. These may be answers, but only if they are presented in a way that encrypted money lovers can understand。

Asia is expected to be the next growth engine for the encryption industry, and the next round of cattle markets will be the ignition switch. But if the exchange is not ready by then, this opportunity will end up in another cycle。