Japan Doubles Crypto Adoption With New Policies

Japan doubled crypto adoption thanks to tax reforms and stablecoin approval. Chainalysis highlights rapid growth and APAC’s evolving crypto market.

Policy reforms boost Japan’s crypto market

Japan has seen one of the fastest crypto adoption rates in Asia-Pacific, with onchain transaction volumes growing 120% year-on-year, according to Chainalysis’ 2025 Geography of Cryptocurrency Report.

This surge was driven by regulatory changes that aligned crypto with traditional securities markets and reduced taxes. In August, regulators also approved the first yen-pegged stablecoin, marking a milestone for the industry.

Market growth supported by regulation

Chengyi Ong, APAC policy lead at Chainalysis, noted that Japan’s activity mirrors global patterns, including strong trading after the US elections followed by a slowdown. However, expectations of more favorable rules continue to fuel demand.

Bitbank executive Atsushi Kuwabara confirmed steady growth in both new and returning users, adding that regulatory reforms are making crypto more accessible for Japanese investors.

Stablecoins drive APAC adoption

Chainalysis reported that Indonesia, South Korea, and India also doubled crypto inflows, while Vietnam grew by 55%, reflecting a market where crypto is embedded in remittances and everyday finance.

Stablecoins remain the key driver across the region. In South Korea, trading volumes surged to $59 billion, with banks closely monitoring new laws. Japan’s JPYC stablecoin and Australia’s licensing progress are expected to further accelerate regional adoption.