Crypto investors in Asia remain largely cautious and are waiting for clear bullish signals before making significant new bets on digital assets, according to a research report from Tiger Research and HTX.
Asian Crypto Investors Remain Cautious Despite Some Bright Spots: Report
1 April 2026 - 14:30 CEST
The last market cycle wiped out large sums of retail money and left lasting scars on confidence. While institutional activity and overall market infrastructure have grown, retail trading volumes and user numbers have stagnated or declined in most markets, the report said.
South Korea leads trading volume
South Korea remains one of the most active crypto trading markets globally. In the second half of 2025, won-denominated volume reached $663bn, the second-highest worldwide. Yet average daily trading activity and deposits have fallen, even as the number of local traders rose 11%. Many are shifting towards equities or offshore platforms to avoid upcoming taxes, the report showed.
XRP dominates in Japan
Japan shows a strikingly different pattern. From July 2024 to June 2025, XRP purchases reached approximately $21.7bn. That's more than four times the value of bitcoins acquired in the same period. The strong preference is driven by the long-standing partnership between Ripple Labs, the company behind the Ripple payment network and its native token XRP, and SBI Holdings, one of Japan’s largest financial groups, according to the report.
Japanese investors tend to view XRP more as a utility token for cross-border payments than a speculative asset. However, gains are taxed as miscellaneous income at up to 55%. Planned reforms this month could reclassify crypto and lower the rate to 20%, removing the biggest barrier for Japanese retail investors.
Institutional interest in Singapore, Hong Kong
Tiger Research and HTX found that Singapore and Hong Kong continue to draw institutional players thanks to clear rules, high security standards and, in Hong Kong’s case, no crypto tax. Yet, retail participation remains modest in both hubs.
The report’s central takeaway is blunt: Asia’s massive pool of "crypto-curious" users (tens of millions aware but not yet invested) is not converting. Regulatory progress and institutional adoption have not been enough to restore broad retail confidence after the last cycle’s losses. The next bull market will likely be decided by the first markets to solve the five persistent barriers: regulatory clarity, security, tax treatment, accessibility and social perception.
