Crypto’s next bull run could start in Asia, not Wall Street – Here’s why

Key takeaways

Asia is rapidly emerging as a driving force in global crypto markets, with China’s looming stimulus. Regulatory greenlights from Japan, Korea, and Thailand also add fuel for a potential rally.

Asia is charging ahead. From Beijing’s liquidity taps to Tokyo’s stablecoin greenlights, the region is starting to set the pace.

But what looks like regulatory housekeeping on the surface may, in fact, be where the global rally begins.

Do altcoins catch a bid when Beijing sneezes?

As China’s economic indicators get bleary, the People’s Bank of China is preparing its next move. Stimulus may arrive as soon as September, and for altcoins, that could be the cue to rally.

Liquidity injections, particularly from a heavyweight like China, have a long history of inflating risk assets.

Crypto is no exception.

Bitcoin’s [BTC] price has shown a tighter correlation with global liquidity than even the S&P 500 or gold. If Beijing opens the taps, markets may respond with appetite for altcoins.

While China’s official stance on crypto remains restrictive, its influence on the broader market is anything but muted.

With a monetary base of $5.2 trillion — just behind the U.S. and eurozone — China commands serious weight.

Source: Porkopolis Economics

It also contributes nearly 20% to global GDP, making its central bank one of the most consequential players in the global capital flow equation.

Even as the Fed tends to hog the spotlight, the People’s Bank of China has the potential to move markets.

South Korea makes a move

The country’s financial authorities are rolling out a four-phase plan that includes spot Bitcoin ETF proposals, KRW-pegged stablecoin pilots, and a roadmap to lift the 2017 corporate trading ban.

In the first half of 2025, nonprofits and public institutions were allowed to liquidate existing crypto holdings. In the second half, listed firms and qualified investors will begin trading on a trial basis.

At the market level, the won is the second-most traded fiat in crypto, accounting for $663 billion in volume year-to-date, or roughly 30% of global fiat-to-crypto flows, per Kaiko.

Source: Kaiko

Nearly one in three Korean adults now own crypto, twice the U.S. rate.

Meanwhile, major exchanges are scaling. Upbit controls 69% of domestic market share, while Bithumb rebounded to 25%, with private shares surging 131% YTD ahead of its KOSDAQ listing.

Source: Kaiko

Stablecoin development is bank-led, with major Korean institutions like KB Kookmin, Shinhan, Hana, and Woori preparing to issue KRW-backed tokens.

Japan’s stablecoin bet

Japan is stepping into the stablecoin game with its first yen-backed digital token.

The Financial Services Agency is set to approve JPYC, a stablecoin issued by Tokyo-based fintech JPYC Inc., for launch later this year.

Backed by bank deposits and government bonds, the token is designed to maintain a strict 1:1 peg to the yen.

What sets this launch apart is the backing. Circle, the issuer of USDC, joined JPYC’s ¥500 million Series A round, so Japan’s domestic stablecoin market may not stay domestic for long.

About the investment, JPYC CEO Norikata Okabe posted on X,

“JPYC has received investments directly or through CVC from listed companies such as Circle, Asteria, Densan System, Persol, Aiful, and others. Additionally, there are other listed companies that have invested in us but are not publicly disclosed. Furthermore, we have entrusted Simplex with the development of our trading system.”

JPYC will operate under Japan’s Payment Services Act, giving it a firm legal foundation, with oversight to match.

The token will be available on Ethereum [ETH], Polygon [POL], and Shiden, and will support everything from e-commerce payments to cross-border transfers.

Thailand taps crypto to lure tourists back

Your next vacation could have a crypto twist!

The Thai government is rolling out TouristDigiPay, a new regulatory sandbox that will let foreign visitors convert crypto to Thai baht and pay for goods via e-money providers, all under Bank of Thailand and SEC oversight.

The move comes as tourist arrivals slump.

In H1 2025, Thailand welcomed 16.8 million visitors, down from 17.7 million the year before. Visits from China alone fell 34%, pushing officials to seek new ways to boost spending and stay competitive.

Tourists will need to pass KYC checks to use the service, which will include spending caps and restrictions on direct cash withdrawals.

Full details are expected from Deputy PM and Finance Minister Pichai Chunhavajira this week.