AIBC Asia: All eyes on the region’s next crypto hub

Ahead of AIBC Asia, we’re taking a closer look at several countries in the region that have worked hard to try and become Asia’s next cryptocurrency hub. After years marked by regulatory uncertainty, governments are now competing to bring digital-asset activity onshore with clearer rules, licensed products and institutional-grade infrastructure.

No single winner has emerged yet, but the contours of a regional contest are taking shape across Hong Kong, Singapore, Japan and parts of Southeast Asia. In this article, we’ll be looking at the different countries and their policies regarding crypto.

We’ll also be taking a closer look at crypto regulation next month at AIBC Asia – the undisputed regional powerhouse in crypto events. The Asia roadshow conference will include panels on crypto, regulation and prediction markets, among other topics. Don’t miss out on tracks such as: The Future of Regulation in the Asian Digital Economy and Emerald City: Asia’s Digital Asset Frontier on the 02 June. For a more detailed look and for the full list of over 250 expert speakers, browse the agenda for AIBC Asia  online.

Hong Kong: a push to being a crypto hub

In an effort to become Asia’s crypto hub, Hong Kong has become the region’s most visible crypto test case. Its authorities have decided to address compliance with a deliberate push to attract global capital.

In May 2025, the city’s Legislative Council passed the Stablecoins Ordinance, which came into force on 1st August. The move placed fiat-referenced stablecoin issuance under the supervision of the Hong Kong Monetary Authority and made marketing of unlicensed stablecoins illegal to curb retail risk.

The Hong Kong government also paired the legislation with pilot projects. According to blockchain compliance firm Elliptic, the HKMA entered the pilot phase of its tokenization programme, Project Ensemble, in November 2025. Participants include Standard Chartered, HSBC, Bank of China (Hong Kong), BlackRock and Franklin Templeton. The project used Hong Kong’s real-time gross settlement system to test interbank settlement of tokenized deposits.

Over time, Hong Kong’s market access also expanded. The Securities and Futures Commission had approved 11 licensed virtual-asset trading platforms by early 2026, while the launch of Asia’s first spot Bitcoin and Ether exchange-traded funds on April 30 marked a milestone.

Singapore’s safety-first approach to crypto

Unlike Hong Kong, Singapore is Asia’s most tightly regulated crypto market. The city-state is unapologetic about its conservative position.

Amendments to the Financial Services and Markets Act now require all digital-token service providers, including overseas exchanges serving Singapore residents, to obtain a local licence from the Monetary Authority of Singapore (MAS) or exit the market. Authorities have also banned credit-card purchases of crypto and introduced minimum capital requirements to protect retail investments.

The approach has not reduced activity. The MAS issued 13 new digital payment token licences in 2024, bringing the total to 29 by November. Industry executives say Singapore’s willingness to facilitate banking relationships for licensed crypto firms remains a competitive advantage.

Singapore’s incumbents are also active. Vivien Khoo, co-founder of the Asia Crypto Alliance, noted that Singapore and Hong Kong now operate “fairly similar” licensing frameworks, making regulatory arbitrage increasingly difficult.

Japan: modern digital economies meet traditional infrastructure

Japan, one of the first countries to regulate crypto exchanges, is revamping its model to stem an outflow of capital and talent.

The government is preparing to cut crypto capital-gains tax from as high as 55% to 20%, a reform that would bring digital assets closer to the taxation of equities. Regulators are also weighing rules that would require exchanges to hold emergency reserves to cover cyberattacks and operational failures.

In November 2025, Japan’s Financial Services Agency publicly backed a stablecoin pilot project involving the country’s three largest banks. This step was seen as critical for rebuilding confidence after a string of high-profile exchange scandals earlier in the decade. Together, tax reform and bank-backed stablecoins signal Tokyo’s intention to make crypto compatible with its existing financial system rather than a parallel industry.

South Korea and Southeast Asia: scale meets momentum

South Korea is moving in the same direction, with a comprehensive digital-asset framework expected to take effect in 2026. Stablecoin legislation, described by Elliptic as a priority of President Lee’s economic growth agenda, is aimed at keeping Seoul competitive with Hong Kong, Singapore and Tokyo. South Korea already boasts one of the world’s most active retail trading communities, giving regulators an incentive to formalise oversight rather than suppress activity.

Elsewhere in Asia, growth is being driven by adoption rather than financial engineering. Central and Southern Asia led the world in crypto usage in 2024, while countries such as Indonesia, Malaysia and Thailand are gaining ground. Thailand is finalising rules for crypto ETFs and futures trading, positioning itself as a regulated gateway for retail and institutional investors in Southeast Asia.

Across the region, Asia had more than 326 million crypto users in 2024, according to industry estimates, reflecting a mix of speculative trading, remittances and decentralised finance use cases.

One hub or many?

Rather than a single winner, Asia’s next crypto hub may be a network of specialised centres. Hong Kong leads on product innovation, Singapore on consumer protection, Japan on banking-grade pilots and tax reform, while other countries are doubling down on compliance.

What unites them is a coordinated licensing push that industry executives say is drawing offshore activity back onshore. With tokenised assets projected by Boston Consulting Group to reach $16 trillion by 2030, Asia’s bet is that regulatory clarity, not deregulation, will determine where the next phase of crypto finance takes root.

For a more in-depth look at the crypto industry in Asia, don’t miss out on AIBC Asia at the end of May. Taking place at the SMX Convention Center in Manila, AIBC Asia will bridge the worlds of AI, blockchain, crypto and the gaming industry, bringing over sixteen thousand key players together under one roof. If you haven’t already, get your ticket now by visiting our website to register.