Digital Gold Rush: Asia’s Race To Lead The Crypto World
In Brief
Kazakhstan aims to become Central Asia’s leading crypto hub by easing restrictions and enhancing regulation, leveraging mining and digital asset trading to boost its economy amid growing regional competition.
Kazakhstan could position itself as Central Asia’s leading crypto hub if it loosens restrictions and strengthens its regulatory framework, according to Kanysh Tuleushin, the nation’s first vice minister of digital development.
Writing in Kazakhstanskaya Pravda, Tuleushin emphasized that smart reforms and a push for digital mining could give the country a regional edge in blockchain. He argued that allowing digital asset trading nationwide would have a “significant” economic impact.
Tuleushin also envisioned Kazakhstan as the “crypto hub” of Central Asia, noting that broader legalization, transparent exchanges, and legal crypto ATMs could inject hundreds of billions of tenge into the economy.
But Kazakhstan is not alone in this race.
The Power of Miners
Tuleushin believes crypto miners could help modernize Kazakhstan’s energy sector by stabilizing the power grid, much like how it’s done in the U.S., by using excess electricity.
He highlighted the 70/30 energy initiative, where foreign investors finance thermal power upgrades, with “70%” of the output going to the grid and the remaining 30% to miners. Tuleushin also suggested repurposing associated petroleum gas from oil fields to power data centers, cutting emissions and generating profit for oil producers.
Over the past three years, Kazakhstan’s mining industry has paid $34.6 million in taxes. By 2023, 415,000 mining machines were registered, 84 licenses issued, and five mining pools accredited. Crypto trading at AIFC rose from $324 million in 2023 to “$1.4 billion” in 2024.
The Regulatory Hurdle
Despite progress, crypto transactions remain largely unregulated outside the AIFC, with an estimated $4.1 billion in turnover in 2023, 91.5% of which took place beyond government oversight.
While Kazakhstan has made strides in crypto regulation, most transactions remain outside official oversight.
In 2023, turnover hit an estimated $4.1 billion, over “91%” of which occurred beyond the AIFC’s control. In response, authorities shut down 36 illegal exchanges in 2024, freezing $4.8 million and dismantling two Ponzi schemes.
The country is also developing a central bank digital currency, the digital tenge, with a 2025 launch planned. Meanwhile, Uzbekistan and Kyrgyzstan are also embracing crypto, with Binance recently partnering with Kyrgyz authorities.
Thailand bets on tokenized bonds in reinvigorating market
Thailand is also pushing forward with a plan to offer tokenized government bonds to retail investors, aiming to modernize its financial sector and expand access to capital markets. Finance Minister Pichai Chunhavajira confirmed Cabinet approval for the initiative, which falls under the 2025 borrowing agenda.
The so-called G-Tokens are classified not as debt instruments but as “digital investment tokens,” according to officials. Unlike traditional bonds dominated by institutions, G-Tokens target everyday investors with the goal of bringing more people into the “digital economy.”
The tokens will be traded on licensed digital asset exchanges, and officials say returns could exceed those of traditional banks, potentially reaching up to 4%, though final yields remain uncertain as the first rollout is seen as experimental.
Thailand has previously explored blockchain-based finance. In February, the Securities and Exchange Commission (SEC) announced plans for a tokenized securities trading system aimed at cutting costs and inefficiencies.
Data from RWA.xyz shows the tokenized government bond market has climbed to $225 million, nearly tripling since late 2024. Meanwhile, privately issued digital bonds have exploded, growing by 260% over the past year to exceed $4 billion.
Even institutional players are taking notice, with Germany’s KfW investing $11 million in digital bonds this week.
South Korea On the Right Path
South Korea continues to balance crypto growth with evolving regulation, maintaining its position as a global leader in digital assets.
While the Credit Information Act, which impacts how exchanges handle user data, has been delayed until December 2025, the pause gives platforms time to adjust to upcoming compliance demands.
Crypto activity has surged in the meantime, with market capitalization topping “100 trillion won” and even outpacing stock trading. Authorities have also postponed a 20% capital gains tax on crypto until 2027, citing enforcement difficulties. Despite regulatory delays, South Korea remains deeply involved in the sector, with a strong interest in altcoins like XRP for their speed and low cost.
Through the Virtual Asset User Protection Act, the government is prioritizing “consumer protection” and cracking down on manipulation.
Vietnam a Remittance Hub?
Vietnam is emerging as a global crypto remittance hub, driven by the lower costs of cryptocurrencies compared to traditional transfer methods.
In 2024, Vietnam ranked fifth worldwide in crypto value received, with inflows totaling $105 billion. While the State Bank of Vietnam bans crypto as a payment method, it does not prohibit owning or trading digital assets.
The same year, the Ministry of Justice confirmed there are no plans to ban crypto. Though the legal status remains ambiguous, a formal regulatory framework is expected in 2025. This could solidify Vietnam’s position in the crypto remittance space and increase investor confidence in the rapidly growing digital asset market.
Malaysia Navigating Regulations
Malaysia continues refining its crypto regulations, even though digital assets aren’t legal tender. Since 2019, the Securities Commission Malaysia (SC) has overseen the sector, issuing its first guidelines in 2020.
In 2024, new updates targeted anti-money laundering efforts. The 2025 amendment to the Capital Markets and Services Act further clarified Malaysia’s approach, officially splitting digital assets into “currencies” and “tokens.” Companies must now identify whether they handle one or both.
Firms are also classified as Recognized Market Operators (RMOs) or Digital Asset Custodians (DACs). These reforms aim to increase transparency, build investor trust, and position Malaysia as a stable, well-regulated hub for crypto innovation in Southeast Asia.
Hong Kong Ahead at Innovation
Hong Kong is quickly establishing itself as a top crypto destination in Asia. Since 2022, the city’s Securities and Futures Commission (SFC) has been licensing virtual asset trading platforms.
By 2025, 10 firms, including U.S.-based Bullish, had received operational approval. In 2023, Hong Kong launched a strict licensing regime to reinforce investor protection.
The government also proposed tax exemptions on crypto gains for hedge funds, private equity firms, and family offices in 2024. Ranked just behind Ljubljana as a top crypto city, Hong Kong is attracting global investors by creating a secure, innovation-friendly ecosystem that rivals regional leaders like Singapore.
Uzbekistan Making Favorable Policies
Uzbekistan has made digital assets a national priority, with the National Agency for Perspective Projects (NAPP) leading regulatory efforts. Between 2022 and 2024, the NAPP issued 14 licenses to crypto firms.
The government-backed UzNEX exchange supports asset trading, staking, and NFTs, expanded in 2024 to include new assets like Toncoin. It also plans to launch a digital art marketplace. UzNEX’s total trading volume surpassed $1 billion in 2024.
With strong state support and growing infrastructure, Uzbekistan is positioning itself as a key crypto player in Central Asia, encouraging both domestic innovation and international partnerships in the digital finance space.
Central Asia’s Crypto Surge: A Regional Revolution
From Kazakhstan’s ambitious reforms to Vietnam’s remittance boom and Hong Kong’s innovation leap, Central Asia and Southeast Asia are reshaping the crypto landscape. With evolving regulations, state support, and fresh market opportunities, this region is fast becoming a vibrant, influential force driving the future of digital finance.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
