Asia’s Crypto Surge: Why Beijing’s Moves Could Trigger the Next Bull Run
Forget the Fed – the next major catalyst for a crypto rally might just be brewing in Asia. From potential stimulus measures in China to groundbreaking regulatory approvals in Japan and South Korea, and even Thailand’s innovative approach to tourism, the region is rapidly becoming the epicenter of crypto’s next growth phase. What appears to be simple regulatory housekeeping could, in fact, be the spark that ignites a broader market uptrend.
China’s Looming Stimulus and the Altcoin Effect
As economic indicators in China show signs of strain, the People’s Bank of China (PBOC) is widely anticipated to implement stimulus measures, potentially as early as September. This is where things get interesting for cryptocurrency investors. Historically, liquidity injections from major economies, and particularly from a heavyweight like China with its $5.2 trillion monetary base (rivaling the US and Eurozone), have a tendency to inflate risk assets – and crypto is no exception.
Bitcoin’s price has demonstrated a stronger correlation with global liquidity than even traditional safe havens like the S&P 500 or gold. If Beijing “opens the taps,” as Porkopolis Economics suggests, the resulting influx of capital could drive appetite for altcoins. While China maintains a restrictive official stance on crypto, its economic influence is undeniable, contributing nearly 20% to global GDP and wielding significant power over global capital flows. Even as the US Federal Reserve dominates headlines, the PBOC’s potential to move markets should not be underestimated.
South Korea Doubles Down on Crypto Adoption
South Korea is aggressively pushing forward with a four-phase plan to integrate crypto into its financial system. This includes proposals for spot Bitcoin ETFs, pilots for KRW-pegged stablecoins, and a roadmap to lift the 2017 ban on corporate crypto trading. The pace of change is remarkable. Nonprofits and public institutions were already permitted to liquidate crypto holdings in the first half of 2025, and listed firms and qualified investors are slated to begin trading on a trial basis in the latter half.
The country’s appetite for crypto is already substantial. The won is the second-most traded fiat currency in crypto, accounting for roughly 30% of global fiat-to-crypto flows – a staggering $663 billion year-to-date, according to Kaiko. Remarkably, nearly one in three Korean adults now own crypto, double the rate in the United States. Domestic exchanges are thriving, with Upbit controlling 69% of the market share and Bithumb experiencing a resurgence, with its private shares surging 131% year-to-date in anticipation of a KOSDAQ listing.
Crucially, stablecoin development in South Korea is being spearheaded by major banks – KB Kookmin, Shinhan, Hana, and Woori – all preparing to issue KRW-backed tokens. This bank-led approach signals a strong commitment to integrating stablecoins into the mainstream financial infrastructure.
Japan’s Yen-Backed Stablecoin and Global Expansion
Japan is taking a significant step into the stablecoin arena with the impending launch of JPYC, the first yen-backed digital token. Approved by the Financial Services Agency (FSA), JPYC is backed by bank deposits and government bonds, ensuring a strict 1:1 peg to the yen. The involvement of Circle, the issuer of USDC, through a ¥500 million Series A investment, suggests that Japan’s domestic stablecoin market may quickly expand beyond its borders.
JPYC will operate under Japan’s Payment Services Act, providing a robust legal framework and regulatory oversight. The token will be available on Ethereum, Polygon, and Shiden, facilitating a wide range of applications, from e-commerce payments to cross-border transfers.
Thailand’s Crypto Tourism Initiative
In a creative move to revitalize its tourism sector, Thailand is launching TouristDigiPay, a regulatory sandbox allowing foreign visitors to convert crypto into Thai baht and use it for purchases via e-money providers. This initiative comes as Thailand faces a decline in tourist arrivals, with a 34% drop in visitors from China in the first half of 2025. The program, overseen by the Bank of Thailand and the SEC, will require KYC checks and impose spending caps and withdrawal restrictions.
The Ripple Effect: What This Means for the Future
These developments across Asia aren’t isolated incidents. They represent a coordinated shift towards greater crypto acceptance and integration. China’s potential stimulus, coupled with the regulatory clarity emerging from South Korea and Japan, and the innovative use cases being explored in Thailand, create a powerful confluence of factors that could propel the next crypto bull run. The East is not only embracing digital assets, but actively shaping their future.
What are your predictions for the impact of Asian markets on the future of cryptocurrency? Share your thoughts in the comments below!
