South Korea Dominates East Asia's $1.2 Trillion Crypto Surge

South Korea emerged as the leader in East Asia's booming crypto economy, which totaled approximately $1.2 trillion between July 2025 and June 2026, according to a report by Chainalysis. The country recorded $449 billion in crypto activity, marking a 12.3% increase from the previous period. This growth was driven by a 16.3% rise in the domestic exchange ecosystem and a surge in trading of AI-related cryptocurrencies. Notably, Worldcoin led with $7.41 billion in volume, followed by SAHARA and VIRTUAL.

Hong Kong's crypto economy reached $192 billion, with institutional platforms capturing 16% of service inflows, nearly three times the share of any other market in the region. The city recorded nearly $24 billion in inbound service-to-service transfers, highlighting its role as a hub for institutional crypto activity.

Japan's crypto economy totaled $228 billion, with decentralized exchanges holding a 34.5% share of services activity. Retail traders continued to face a maximum marginal tax rate of 55%, though tax reforms advanced after the study window closed. Meanwhile, China's crypto economy was estimated at a minimum of $176 billion, with peer-to-peer activity accounting for 59.1% of the total.

Separately, South Korea's Financial Services Commission proposed revisions to permit tokenized securities under the Financial Investment Services and Capital Markets Act. The framework is scheduled to take effect on February 4, 2027, following a public comment period. Additionally, the Ministry of Science and ICT approved a pilot for blockchain-based deposit tokens in government payments.