A new report by Tiger Research highlights a structural shift in Asia's cryptocurrency markets: institutional investors are expanding rapidly while retail sentiment declines. The catalyst was the approval of spot Bitcoin ETFs in the United States in 2024, which triggered a flood of institutional capital and boosted overall market size. Yet Bitcoin's market dominance has climbed to nearly 60%, dampening expectations for outsized gains among altcoin-focused retail investors.
Retail vs. Institutional Divergence
The report identifies a growing segment labeled “crypto-curious”—those interested in digital assets but not yet investing—as a key driver for potential market expansion. Tiger Research analyzes how regulatory uncertainty, security concerns, tax burdens, access challenges, and societal perceptions act as primary constraints on this group's entry. These obstacles vary by country.
Tiger Research is a recognized firm specializing in Web3 and digital asset ecosystem analysis, with a focus on deep dives into Asian markets and regulatory developments.
Regional Regulatory Divergence
Regulatory frameworks are taking shape across Northeast Asia, but substantial differences remain. South Korea saw local currency (won) crypto transaction volumes reach $663 billion in the second half of 2025, placing it among global leaders. However, recent trends show a downturn in daily trading activity and won deposits. Market commentators warn that pending tax measures could further depress demand.
Japan's market is stable but burdened by crypto gains tax rates as high as 55%. A planned reduction to 20% in April 2026 is widely seen as a potential game-changer for investment appetite. Hong Kong offers relatively mature regulatory, security, and tax regimes, though individual investor access remains constrained.
In Southeast Asia, cryptocurrency adoption follows divergent paths and institutionalization is still early. Thailand provides temporary tax exemptions for trades on licensed exchanges; Vietnam has granted digital assets legal status and launched pilot programs. The Philippines sees rising user numbers but persistent security risks.
Exchanges Adapt with Localization
Major exchanges are responding by acquiring licenses, demonstrating proof of reserves, and localizing operations. Binance has secured licenses in over 20 countries; OKX is expanding across Europe; HTX is building multiple global operational centers.
“Asia could become the next major engine for crypto market growth. However, unlocking this potential relies on each country proactively developing solutions tailored to their unique obstacles,” the report emphasizes.