South Korea leads East Asia with $449 billion crypto economy
South Korea's digital asset economy surged to $449.1 billion between July 2025 and June 2026, making it the largest in East Asia, according to a report by Chainalysis. The growth, driven by retail investors, marked a 12.3 percent increase from the previous year. Japan, Hong Kong, China, and Taiwan followed with $228.3 billion, $192.2 billion, $176.3 billion, and $140.4 billion, respectively. The report, titled "East Asia Crypto Adoption Report: South Korea's AI Trade Comes to Crypto," highlighted the country's retail-driven market, despite limited participation from major financial institutions.
The report emphasized the significant role of AI-related cryptocurrencies in Korea's crypto economy. As retail investors poured into shares of Samsung Electronics and SK hynix amid an AI-fueled stock market rally, they also invested heavily in digital assets linked to AI-focused projects. By June 2026, AI-related cryptocurrencies accounted for about 18 percent of all Korean won-denominated crypto trading, surpassing payment-related cryptocurrencies like Ripple. This share was notably higher compared to other markets, with Japan's yen-denominated trading in AI-related cryptocurrencies at just 0.91 percent.
Among the top AI-related cryptocurrencies in Korea, Worldcoin recorded the highest trading volume at $7.41 billion, followed by Sahara AI, Virtuals Protocol, Bio Protocol, and NEAR Protocol. The report suggested that Korea's crypto market could undergo significant changes in 2027, with the implementation of a long-delayed 22 percent crypto tax and increased institutional participation. Greater involvement from financial institutions could potentially counterbalance retail activity if it weakens.
The report also noted the varying market structures across East Asia. In Hong Kong, institutional platforms accounted for 16 percent of total inflows into crypto services, while decentralized exchanges made up 34.5 percent of Japan's overall crypto services market. In China, peer-to-peer fund flows drove an estimated 59.1 percent of the digital asset economy.