It’s a milestone that has been on the minds of cryptocurrency enthusiasts around the world for many years: Bitcoin’s recent rally to reach a value of $100,000. At the same time, the rise of Bitcoin has helped reveal Asia’s considerable enthusiasm for crypto adoption and development.
The scale of Bitcoin’s current rally is the subject of much debate, but its resonance in Asian economies appears assured regardless of the direction the cryptocurrency takes in the coming months.
According to the Global Crypto Adoption Index 2024, Central, South Asia and Oceania (CSAO) leads the world in crypto adoption, representing seven of the 20 most active nations for centralized and decentralized finance (DeFi) protocols.
At the forefront of this growth is Indonesia, which exceeded $30 billion (Rp. 475.13 trillion) cryptocurrency transactions between January and October 2024, representing over 350% growth compared to the same period in 2023.
However, we are also seeing widespread changes at the institutional level, which could lead to significant growth in the number of cryptocurrency use cases in 2025 and beyond across the region. As interest in crypto reaches new levels in the Asia-Pacific region, Bitcoin is becoming more accessible than ever.
Bitcoin’s recent growth has brought a series of watershed moments for Asian crypto adoption. In November, ZA Bank, Hong Kong’s first and largest digital bank, became the first institution on the mainland to offer cryptocurrency trading services directly to retail investors. With the ZA Bank app, it is possible for users to trade cryptocurrencies like Bitcoin and Ethereum without needing to change platforms in the process.
In November 2024, Japanese company AEON announced the launch of a QR code payment system on Binance’s BNB chain with Terminus, helping to expand the accessibility of crypto payments in East Asia.
The tools aim to make cryptocurrency payments a seamless experience for users and merchants, and the initiative could help leverage more offline cryptocurrency payments across the region.
Cryptocurrency payments have been identified as a leading payment trend due to their flexibility and security qualities, and opening the door to purchases with coins like Bitcoin represents a major step towards acceptance.
We also see Asian companies making progress in expanding investment opportunities at the institutional level.
Focused on leveraging Bitcoin as a primary reserve asset to optimize financial strategies and generate stakeholder value, Sora Ventures has launched a $150 million fund develop Bitcoin-focused investment strategies among listed companies across Asia. Targeting companies listed on major exchanges in Japan, Hong Kong, Thailand, Taiwan and South Korea, the move is a conscious effort to replicate the success of MicroStrategy’s Bitcoin reserve model in the United States.
In the month following the US presidential election, which saw Wall Street and cryptocurrency markets embark on a rally following Donald Trump’s victory, Bitcoin rose 30%. That’s more than double the 14% growth rate recorded by the Roundhill Magnificent Seven ETF (MAGS), an exchange-traded fund that focuses on Wall Street stock markets. seven biggest companies by market capitalization.
Expanding investment options for Asia’s largest companies can open the door to better managed growth and the ability to take full advantage of the historic outperformance of cryptocurrencies like Bitcoin.
It is also important to highlight Asia’s invaluable role among cryptocurrency developers, with the continent overtaking North America in recent years to achieve significant market share. Since 2015, Asia’s share of global cryptocurrency developers has increased from just 13 percent to 32 percentwhile North America’s market share fell from 44 percent to 25 percent during the same period.
While India has been a driving force in Asia’s new crypto dominance, countries like China, Japan, Hong Kong, and Singapore have all helped build infrastructure conducive to crypto developers.
In emerging markets of India and Southeast Asia, where traditional banking infrastructure may be less accessible, cryptocurrencies like Bitcoin have helped democratize services, according to Anndy Lian, a Singapore-based fund manager. financial for residents. It is this need for innovation that appears to be positioning Asia Pacific at the forefront of crypto innovation, and both retail investors and institutions are reaping the benefits.
According to a recent Thai national report, countries like Thailand, Indonesia and the Philippines have high smartphone penetration rates, making cryptocurrency much more accessible during the current market recovery. As a result, we could see much stronger adoption rates for locally developed crypto and DeFi services.
Despite clear indications that Asia is welcoming the ongoing cryptocurrency rally more enthusiastically than ever, a number of challenges remain.
Cryptocurrency is notoriously volatile and open to exploitation by unwitting users. As Bitcoin’s historic rallies result in substantial losses, retail and institutional users will need to be wary of crypto purchases.
Asia is also grappling with cryptocurrency crime, which could become more widespread as its adoption grows. Forbes recently reported that addresses in China were receiving more than $37.8 million in cryptocurrency Between January 2018 and April 2023, links were established to large-scale illegal sales of fentanyl using crypto payments. This could require regulatory oversight that can quickly adapt to an industry known for its unpredictability.
For all its problems, Bitcoin’s recent rise above $100,000 is a reminder of the vast potential of the cryptocurrency industry. By responsibly harnessing the potential of crypto, the Asia-Pacific region can become more prosperous, economically flexible and accessible to all residents.
Despite its famous volatility and concerns over its misuse, the long-term potential of cryptocurrency is bright and Asia is well-positioned to become a global leader in cryptocurrency innovation.
