- Eastern Asia has become the sixth largest crypto economy globally, driven mainly by institutional trading in South Korea and Hong Kong, with over US$400B in on-chain value from July 2023 to June 2024.
- South Korea leads the region with nearly US$130B in crypto value, followed by Hong Kong and Japan.
- Hong Kong’s favourable regulatory environment has attracted institutional interest, allowing it to act as a gateway for accessing Chinese market demand.
Eastern Asia has risen to the sixth spot in the global crypto economy, driven by institutional trading in South Korea and Hong Kong, according to a Chainalysis report.
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From July 2023 to June 2024, the region processed over US$400B (AU$592B) in on-chain value, accounting for 8.9% of the global total. A significant 64.7% of this activity came from large transactions on centralised exchanges.
South Korea Leads Region with Easy Access to Trading
South Korea leads the region with nearly US$130B (AU$192B) in crypto value during the period. As a “top IT nation”, said a leader at a South Korea-based exchange to Chainalysis, the country provides easy access to digital asset trading through mobile and PC.
The report reads:
In terms of actual trading strategies, it appears that South Koreans often use local exchanges to on-ramp and move funds to global exchanges, which provide access to diverse assets, arbitrage opportunities, margin, and off-ramping.
ChainalysisAccording to insights from Chainlaysis, the growth in the East Asian region is partly due to public mistrust of traditional finance and the involvement of major companies like Samsung in blockchain projects.
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Hong Kong Fastest Growing Region in East Asia
Besides South Korea, Hong Kong, Japan, Taiwan, and China are some of the leading countries in terms of on-chain transferred value. While South Korea might have traded the most volume, Hong Kong has the fastest-growing rate in East Asia.
Hong Kong has benefited from China’s 2021 crypto ban, growing into a key crypto hub with an 85.6% year-over-year increase in adoption. According to the report, the city now ranks 30th in Chainalysis’ Global Crypto Adoption Index.
Hong Kong has attracted institutional interest thanks to its favourable regulatory environment. Although it is not an independent country as such—it’s a “Special Administrative Region” of China—it has a distinct legal and regulatory framework, which has enabled institutions to access Chinese market demand through Hong Kong.
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