Asia Crypto Regulation: Japan Leverages On-Chain Finance, South Korea Expands Institutional Access

Asia's crypto regulation landscape is witnessing significant developments as several major markets move towards structured oversight of digital assets. Japan has elevated on-chain finance to national policy, while South Korea is expanding institutional access despite a decline in retail trading volumes. In Russia, Sberbank is building regulated virtual asset trading infrastructure, and the Philippines and Vietnam are advancing stablecoin frameworks.

Japan's move towards on-chain finance as a national policy priority has cleared a legal barrier for a spot Bitcoin ETF listing on the Tokyo Stock Exchange. Taxation reform in Japan aims to replace a miscellaneous income tax of up to 55% with a flatter rate near 20%, matching how stocks and bonds are taxed.

South Korea's institutional access expansion comes as retail trading cools sharply, with combined daily volume on won-based exchanges falling from $2.82 billion in July 2025 to near $305 million in July 2026, a drop of almost 89% year-on-year. Regulators are still opening doors for bigger players, and South Korea is advancing stablecoin regulations and broader market reforms.

Russia's Sberbank plans to launch trading infrastructure and a digital depository by December 1, 2026, following the State Duma's approval of Russia's crypto regulation bill. The Philippines and Vietnam are also moving towards formal oversight, with the latter entering a five-year pilot program to establish licensed local exchanges.