It’s no secret that Asia has long been at the forefront of technological progress. The rapid adoption of blockchain and cryptocurrency in this part of the world only proves this point. Laws and regulations related to buying and selling Virtual Digital Assets (VDAs) are constantly evolving, with more than a thousand blockchain companies existing in that region.
The number of users in the Asian cryptomarket since 2024 has already exceeded 327 million. Most of those are located in China, Singapore, and India. The cryptocurrency legal framework in Asia is famous for its sky-high pace of crypto innovation and development. And yet, 2024 became a year of the region’s implementation of new virtual-asset regulations and significant changes that might bring unpredictable global transformations in the market.
Are you interested in learning more about how this region recently became a global leader in the crypto ecosystem? This guide will introduce you to the growth, key trends, challenges, and future possibilities of cryptocurrency regulation in Asia.
Overview of the Crypto Market in Asia
What does Asia’s current crypto ecosystem look like today? It is the epicenter of the worldwide VDA innovations. Interestingly, each country of the region contributes in its unique way to the overall dynamic growth. The key countries that open the doors for more advanced innovation are Singapore, China, India, and Japan. Similar to the European crypto market, the blockchain and VDA landscape in Asia experienced significant regulatory changes in 2024. However, in contrast to the implementation of supportive domestic policies in European countries, the Asian region is currently driving into the more strict crypto regulations that would ensure more transparency and accountability in the market.
According to the 2024 Chainalysis Geography of Cryptocurrency Report, the economic, cultural, demographic, and regulatory factors are key to the region’s dominant position in the market. Those include advanced licensing, fostering transparency, clear tax policies, and regulatory developments. The latter have been especially significant to the region’s stance on virtual assets on both the local and international scale.
Importance of Regulation for the Asian Crypto Ecosystem
The world is witnessing some crucial changes in crypto laws in Asia. Asia is currently going through a variety of significant shifts in its virtual-asset regulation, which might potentially impact its strong global leadership in the market. So, what has been shaping the Asian VDA market as we know it today? Overall, the cryptocurrencies, including Pi coin and Bitcoin – are no longer recognized as legal in several key regions like India, China, and Singapore. The Asian governments impose up to 30% tax on virtual-asset investment and trading as well as limit the permission for using VDA to only personal purposes. Overall, the governmental oversight has tightened significantly over the past year in the region.
Key Trends in Cryptocurrency Regulation Across Asia
The landscape of the Asian crypto market trends has evolved significantly in the past year. Such countries as China, Thailand, and Singapore had securely positioned themselves at the forefront of cryptocurrency adoption by the end of 2024. For instance, Singapore is currently known for its remarkable regulatory clarity as well as effective consumer protection rules. Indonesia also demonstrates a thriving crypto economy due to its decentralized finance innovations (DeFi).
On the other hand, several countries in the region are currently adopting stricter regulations related to trading virtual assets. The key regions that are implementing new crypto policies are China, Japan, Singapore, and India. In particular, digital currency is currently considered illegal in countries like Singapore and China. And yet, the blockchain regulation in Asia is what still underscores this region’s potential as a crypto-financial leader. You will learn more about each of those regions below.
Regional Variations in Cryptocurrency Regulation
With the legislation constantly changing and the market trends evolving, it might be a challenge to start a successful modern-technology business in Asia. Are you looking forward to joining this progressive working environment and expanding your crypto network there? In order to secure your digital-currency activities there, you need to pick the right license before you begin selling and buying the tokens.
Contact Fintech Harbor Consulting LTD and receive full A to Z legal support from collecting all the necessary documents to obtaining your crypto license. Whether you need a crypto license in Singapore or any other innovative Asian country, we are here to ensure your efficient and smooth licensing process.
Cryptocurrency Regulation in China
China opens the list as one of the most significant global crypto players, thanks to its blockchain technology over the past decade. This country’s activity is mainly centered around finance and logistics, which is where blockchain technology comes into play the most. What is particularly impressive about this region is that Chinese technology thrives despite strict governance in VDA-related regulations. In particular, a vast number of cryptocurrencies, including Bitcoin, are considered illegal in the country. To compare, up until 2017, China hosted the world’s largest virtual-asset market, with over 80% of Bitcoin transactions conducted in yuan.
However, recently, the country has shifted its stance on VDA activities and adopted some of the hardest regulations. Digital currency is now considered potentially harmful to the country’s financial stability. While the account users still manage to find ways around the restrictions, you can only use digital currencies for personal purposes and not as a payment method or investment.
As for 2025, the nation is moving towards tightening its oversight when it comes to “suspicious” international virtual-asset transactions. China’s crypto regulation requires local banks to report any “risky” trade and even uncover the user’s identity in case of unsatisfactory financial behavior.
Japan's Approach to Crypto Regulation
Another country with remarkable investor security and stability is Japan. In 2024, it significantly improved its digital finance-driven economic growth by reducing tax burdens on unrealized gains that had already reached 55%. With over 11.8 million crypto accounts in 2024, Japan reached a three-million increase in the number of accounts from 2023.
By 2026, Japan’s cryptocurrency regulation is expected to experience a significant transformation. Namely, the Financial Services Agency (FSA) is working on reclassifying virtual assets as financial products under bonds and stocks. It will subject all VDA activities to stricter oversight and insider trading rules. For instance, individuals are allowed to buy and sell VDAs only based on providing the required internal information.
The Regulatory Landscape in Singapore
The institutional leader in Asian crypto technologies is Singapore. In 2024 alone, this country recorded up to $1 billion in merchant transactions. This city-state relies with its success on a clear regulatory framework, which was formed by the Monetary Authority of Singapore (MAS). Also, the country’s strategic location between the Western and Eastern markets adds to its overall strong position. Along with China and India, the city-state emphasizes transparency and innovation in financial products and services. It’s marked with regulatory security and growing investor confidence.
Here is what crypto regulation in Singapore looks like in 2025. Trading virtual assets is considered risky, and the Monetary Authority of Singapore (MAS) has been taking action to ensure that the public is aware of that. For instance, this central bank authority prohibits releasing any type of promotion or public advertisement of digital payment tokens (DPT), providing in-person DPT services through ATMs, and engaging social-media influencers or other third parties. Moreover, since 2024, Singapore has tightened its compliance requirements. Now, for example, entities engaging in VDA activities must obtain a license with a minimum base capital of SGD 250,000.
Cryptocurrency Laws in India
As for 2024, India scored the highest global crypto adoption index, with over $2.5 billion of value in cryptocurrency. By 2035, this number is expected to reach almost $15 billion. Moreover, this country hosts over 98 million account owners who positively shape its VDA ecosystem. Overall, it wins from its incredibly diverse and vast demographic landscape. In particular, those cities that often receive poor traditional banking services are now embracing VDA as a means of financial inclusion.
Meanwhile, there are also challenges, too, when it comes to cryptocurrency regulation in India. Namely, the country introduced a new 60% tax rule in February 2025. It implies that any unreported virtual-asset holdings are subject to a steep 60% taxation rate, with no exemptions or deductions. Besides, the Indian government continues to apply a flat 30% tax to every virtual-asset activity.
As well, the 1% TDS (Tax Deducted at Source) rule remains valid under section 194C in Budget 2025. It applies to salaried individuals with a total transaction exceeding ₹10,000 in one financial year and business owners with their VDA transactions exceeding ₹50,000 annually.
FAQs
How are cryptocurrency regulations evolving in Asia?
The year 2024 was marked by the tightening of the VDA-related regulations in the region, including the stricter governmental oversight and banks’ supervision of transactions made with digital assets. As for 2025, those changes are expected to expand and affect not only local but also international trade. For instance, due to the strict banking regulations, any “suspicious” international transactions, including those made via cryptocurrency, can lead to the user’s identity disclosure and the assessment of their past financial performance by the local banks.
What are the challenges of crypto regulation in Asia?
There are a few crypto regulation challenges in Asia that could potentially slow down the global VDA adoption in the region. One of them is the implementation of up to 30% tax in countries like India, which affects crypto gains. Another challenge that the Asian digital market faced in the past was regulatory uncertainty and fragmentation, enforcement struggles, fraud concerns, and balancing regulation and innovation. While countries like Japan and Singapore hold to clear regulations, some others, including China, tend to choose a stricter regulatory approach, which potentially limits crypto activities in the region.
How do crypto regulations differ between China, Japan, and India?
The VDA-related laws in these countries differ in their stances on trading, mining, taxation, and governmental oversight in digital transactions. China, for example, banned the use of virtual currencies in business transactions and increased the bank supervision over them. Moreover, account holders are subject to their identity disclosure in case they are spotted with any suspicious financial behavior. Japan, however, allows cryptocurrency and has clear regulations for it under FSA oversight. India, in turn, permits digital-asset trading but lacks a transparent framework for regulating the transactions and imposes high taxes on every VDA activity instead.
