Favorable regulation and stablecoin reforms drive rapid growth
Japan has more than doubled its crypto adoption in the past year, according to Chainalysis’ 2025 Geography of Cryptocurrency Report. The study shows that crypto value received on-chain in Japan grew 120% year-on-year in the 12 months leading up to June. Among Asia Pacific (APAC) markets, Japan posted the strongest growth, fueled by regulatory reforms and favorable tax changes.
Chainalysis APAC policy head Chengyi Ong noted that Japan’s trend mirrors global activity: a trading spike in late 2024 following the U.S. presidential election, followed by a slowdown.
Regulatory Reforms and Stablecoins
Japan’s government has actively aligned crypto regulations with traditional securities laws while adjusting taxation to ease the burden on investors. In August, regulators approved the country’s first yen-pegged stablecoin (JPYC), marking a breakthrough for domestic exchanges that were previously restricted from listing stablecoins.
Chainalysis highlighted these reforms as key to Japan’s momentum, saying: “Japan’s growth is on the heels of important advances in its crypto industry.”
Stablecoins Driving APAC Adoption
Stablecoins are emerging as a core driver of crypto adoption across the APAC region. Ong explained that banks in South Korea have shown strong interest in stablecoin regulation, with the country’s stablecoin trading volumes rising more than 50% year-on-year, totaling $59 billion.
Meanwhile, India topped the Chainalysis Global Adoption Index, with young investors trading for income growth and remittances playing a major role. Vietnam showcased a different use case—crypto as everyday financial infrastructure for gaming, savings, and cross-border transfers.
In Pakistan, a mobile-first population uses stablecoins as a hedge against inflation and for payments, while South Korea treats crypto trading similar to equities, driven by new domestic laws.
Regional Outlook
The report underscores APAC as the fastest-growing region globally for on-chain value received, with diverse adoption pathways:
- Japan: Institutional reforms and stablecoin expansion.
- India & Vietnam: Remittance-heavy markets with mass retail use.
- Pakistan: Inflation hedge via stablecoins.
- South Korea: Equity-style crypto trading.
Ong added that Australia is another market to watch, as regulators recently licensed a stablecoin under its existing financial regime, signaling a more open stance despite slow legislation.
Japan’s rapid growth reflects how policy clarity and tax incentives can accelerate adoption. As stablecoins gain traction and APAC nations embrace varied use cases, the region is set to remain a global leader in crypto innovation and adoption.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.