Crypto markets across Asia: China, Japan, Korea, India and Southeast Asia

How do crypto markets differ across Asia?

Each national market sits inside the same global price cycle, yet each one passes a crash to its residents through different channels. A trader in Seoul, a taxpayer in Mumbai, and a saver in Bangkok face different venues, different tax bills, and different notices from their regulators. Reading the region as one block hides the details that decide how a fall is felt.

Three questions sort the markets quickly. Who may trade, which venues are licensed, and how are gains taxed? A market with clear answers gives holders predictable rules during a fall, and a market with open answers leaves room for sudden notices. The five sections below apply these questions to each market in turn.

What did the China ban change for the crypto market?

China moved in steps. The People’s Bank of China barred financial institutions from handling Bitcoin transactions on 5 December 2013. In September 2017, exchanges and trading platforms were effectively banned, and 173 platforms had closed by July 2018. A complete ban on crypto trading and mining took effect on 24 September 2021 (Wikipedia, legality of cryptocurrency by country).

Every step removed a domestic route and changed where participants could act. The guide China crypto ban follows the 2021 crackdown and shows how a policy notice can reprice a market within days. For a treasury outside China, the lesson is practical: a single regulator can change the shape of a market in one announcement.

How did Japan build crypto rules after the Mt. Gox failure?

Mt. Gox suspended trading on 24 February 2014 and filed for civil rehabilitation in Tokyo on 28 February 2014. It had handled over 70% of the world’s Bitcoin trades. After a large wallet turned up, the reported loss stood at 650,000 Bitcoin (Wikipedia, Mt. Gox). A venue of that weight failing showed how much risk sits in one operator.

Japan answered with registration. As of April 2017, crypto exchange businesses fall under the Payment Services Act, which requires registration, record-keeping, security measures, and customer protection (Wikipedia, legality of cryptocurrency by country). The guide Japan crypto regulation explains how that licensing model works and what it teaches about venue risk.

Why does the South Korea crypto market trade at a premium?

The kimchi premium is the gap between Bitcoin prices on South Korean exchanges and on international platforms. It reached 10% in the week of 8 March 2024, then eased to 5.59% (Korea Times, 8 March 2024). Strong local demand, strict financial controls, and the absence of spot Bitcoin funds in the country all feed the gap.

Adult South Koreans may trade only on registered exchanges, through real-name bank accounts, and foreigners are barred from trading (Wikipedia, legality of cryptocurrency by country). The guide South Korea crypto market shows what this retail intensity means for a crash, since a crowd of local traders reacts to the same headline at the same moment.

How does tax shape the India crypto market?

India taxes income from transferring any virtual digital asset at 30%, and a 1% withholding under section 194S applies to payments for transfers made to a resident, from 1 July 2022 (IBFD, CBDT guidelines on virtual digital assets). A withholding charge on each trade raises the cost of active trading, so tax design becomes a direct driver of volume.

Rules also moved through the courts. The Reserve Bank of India banned regulated entities from crypto sales and purchases in early 2018, and the Supreme Court revoked that ban in March 2020 (Wikipedia, legality of cryptocurrency by country). The guide India crypto tax and rules explains how policy shapes volumes and what holders should record.

How far has crypto adoption spread across Southeast Asia?

Southeast Asia shows three distinct stances. Thailand allows trading and holding, yet crypto stopped being an accepted payment for goods and services on 1 April 2022. Vietnam declares crypto illegal as a means of payment, with fines of 150 million to 200 million VND, while trading it as an asset stays outside the ban. The Philippines regulates exchanges through the central bank under Circular 944 (Wikipedia, legality of cryptocurrency by country).

These stances share one idea: crypto is an asset to hold and trade, and money for daily payments stays with the national currency. The guide Southeast Asia crypto adoption compares Thailand, Vietnam and the Philippines and shows what each stance means for a holder when prices fall.

How can you compare crypto markets across Asia before a crash?

Build one table per market with four columns: who may trade, which venues are licensed, how gains are taxed, and which notices a regulator has issued. Fill each cell with a dated source. A short table turns a region of rumours into a list of facts you can recheck each quarter. This page is general information, not investment advice.

Then link the table to your own exposure: where your venues sit, where your counterparties are licensed, and which tax rule applies to your holders. The EQOS Asia method page explains how such inputs become a score. Teams that want a view on their own exposure can book a 30-minute pre-diagnostic with EQOS Asia.

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About the author

Stéphane Jambu

President, EQOS Forecast Asia

Stéphane Jambu leads EQOS Forecast Asia and works as a consultant in e-commerce, search visibility, and AI. LinkedIn profile