Crypto in Asia: Japan Set to Surge Amid Changing Regional Power Balance

At Token2049 in Singapore, industry leaders repeatedly emphasized a striking trend: Tokyo is quietly overtaking traditional hubs like Singapore and Hong Kong as Asia’s premier crypto center.

Historically, Singapore and Hong Kong dominated the conversation thanks to English-language support, Western-style legal systems, and robust financial infrastructures. But executives at Token2049 focused on Japan, highlighting its growing credibility in trading volume, staking infrastructure, and institutional participation.

“Japan had no regulation for a long time—that’s where crypto essentially started,” said Konstantin Richter, CEO of Blockdaemon. “Then regulations tightened, and growth stalled. Now, Japan has a regulatory framework that is institutionally scalable and ready to take off. Singapore, meanwhile, has swung from innovation to heavy regulation.”

Singapore’s Regulatory Shift
Singapore initially attracted crypto firms with a liberal sandbox approach. But after failures like FTX exposed weak consumer protections, the Monetary Authority of Singapore (MAS) implemented strict supervision in 2024—raising compliance costs, mandating audits, and slowing licensing.

“Singapore was once a magnet for crypto,” Richter said. “Now the rules are stricter, creating hurdles for firms even if they don’t serve local customers.”

Japan’s Regulatory Advantage
Japan’s regulatory groundwork dates back to post-Mt. Gox (2014) and Coincheck (2018) reforms. Licensing, custody, and segregation rules were implemented long before FTX, providing predictability and security for institutional players. By 2025, Japan is cautiously opening its markets, allowing institutional staking, crypto-backed ETFs, and clearer yield frameworks.

Richter also pointed out Japan’s attractive staking yields. After the Bank of Japan ended negative rates last year, staking returns on ETH—around 3%—far exceed domestic treasury yields, drawing institutional flows to Tokyo. BitMEX even relocated its data center to Tokyo to capitalize on the trend.

Market Takeaways
Japan’s crypto ecosystem now combines predictability, investor protection, and rising yields—offering an institutional-grade alternative to Singapore and Hong Kong.

Bitcoin (BTC): Surged past $126,000 amid macro tailwinds, high perpetual funding rates, and retail-driven demand.
Ethereum (ETH): Traded near $4,705, supported by on-chain fundamentals, upgrade optimism, and rotation from BTC. BitMine Immersion Technologies added 179,251 ETH last week, totaling 2.83 million ETH (~$13.4B).
Gold: Traded near $3,960, approaching Bank of America’s $4,000 target. Analysts caution Q4 consolidation after a 50% YTD rally but note upside toward $5,000–$7,000 if the bull cycle continues.
Nikkei 225: Hit record highs, fueled by Wall Street tech gains, chip stock rallies post OpenAI-AMD deal, and optimism from Sanae Takaichi’s election as Japan’s next prime minister.