Asia Revamps Crypto Regulations: What’s Driving the Shift?

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As support for cryptocurrency increases under the new U.S. administration, Asian nations are adjusting their strategies regarding digital assets. This shift demonstrates their commitment to remaining competitive globally as blockchain and crypto technologies continue to expand.

Malaysia and Thailand Adapt to Global Trends

Countries like Malaysia and Thailand are opening up to crypto-based innovations. Malaysia, for example, has signaled that it will support the growth of the digital asset industry with more friendly policies.

Thailand is not far behind. The country is considering allowing the listing of Bitcoin ETFs, which could potentially boost crypto adoption among the public and institutional investors. This move shows that both countries are looking to capitalize on this global trend with an approach that remains mindful of the stability of their financial systems.

However, while policies are starting to move in a more positive direction, crypto adoption in the region is still gradual. Most countries remain cautious, given the potential risks that could arise if regulations are not properly implemented.

Hong Kong and India’s Contrasting Approaches

Hong Kong, one of the global financial centers, has also taken strategic steps to support the crypto ecosystem. The Hong Kong government plans to incentivize tax breaks for hedge funds and wealthy families investing in digital assets. This move is not only aimed at attracting institutional investors, but also to strengthen its position in the international financial market.

On the other hand, India continues to show its leadership in crypto adoption despite facing strict regulations and a high trade tax burden. The popularity of digital assets in India remains high, reflecting the appeal of crypto technology amidst regulatory challenges. This approach shows how crypto adoption in India is driven by strong public interest, despite the government still implementing more conservative policies.

Indonesia: Building a Structured Crypto Ecosystem

Indonesia has also shown significant progress in its crypto policy. In January 2025, the Financial Services Authority (OJK) issued OJK Regulation No. 27 of 2024 on the Implementation of Digital Financial Asset Trading, including crypto. This regulation is designed to provide a clear regulatory framework and support the growth of the digital asset industry in Indonesia.

This regulation is also in line with Law Number 4 of 2023 on Financial Sector Development and Strengthening. With more structured regulations, the Indonesian government hopes to create a safe crypto ecosystem for industry players and investors, while increasing the country’s competitiveness at the regional level.

Challenges and Future of Crypto in Asia

While Asian countries are making progress in developing pro-crypto policies, major challenges remain. Regulations must be designed in a way that supports technological innovation without neglecting consumer protection and financial stability.

In addition, with global competition intensifying, Asian countries need to move quickly to keep pace with Western countries, especially the United States, which are aggressively pushing a pro-crypto agenda.

Nevertheless, initiatives such as Hong Kong’s strategic move, India’s success in leading crypto adoption, as well as Indonesia’s new regulations show that Asia has great potential to become the center of global crypto innovation in the future.

With a well-thought-out strategy and balanced regulation, Asia can play a pivotal role in shaping an inclusive and sustainable crypto ecosystem and cement its position as a leader in the evolving digital age.

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