Web3-focused research firm Tiger Research has published a new report analyzing investor behavior across nine countries in Asia, revealing notable trends in the region’s cryptocurrency markets. While institutional investors have increased their influence, the data points to a visible decline in individual investor participation.
Institutional investors expand as retail sentiment declines
The report highlights that, following the approval of spot Bitcoin ETFs in the United States in 2024, institutional capital has flowed rapidly into crypto markets, substantially boosting overall market size. Despite this growth, the number of individual investors has begun to slip. Analysts link this to Bitcoin’s market dominance reaching nearly 60 percent, which has weakened expectations for outsized gains among altcoin-focused retail investors.
The report identifies a growing segment labeled “crypto-curious”—those interested in digital assets but not yet investing—as a key driver for potential market expansion. Tiger Research analyzes how regulatory uncertainty, security concerns, tax burdens, challenges with access, and societal perceptions act as primary constraints on this group’s market entry. These obstacles, the report notes, have varied impacts depending on the country in question.
Tiger Research is a widely recognized firm specializing in the analysis of Web3 and digital asset ecosystems. The company is particularly known for its deep dives on Asian markets, regularly evaluating industry dynamics and regulatory developments shaping the sector.
Regional differences and evolving regulatory landscapes
Regulatory frameworks are swiftly taking shape across Northeast Asia, but considerable differences persist between countries. In South Korea, the second half of 2025 saw local currency (won) crypto transaction volumes reach $663 billion, placing the country among global leaders. Yet, recent trends indicate a downturn both in daily trading activity and local currency deposits. Market commentators point out that pending tax measures could further depress transaction demand if implemented.
Japan’s market is characterized by stability, but tax rates on crypto gains—reaching up to 55 percent—pose a major burden for investors. A planned reduction to 20 percent in April 2026 is widely seen as a pivotal moment that could reshape investment appetite. Meanwhile, Hong Kong offers relatively mature regulatory, security, and tax regimes, although individual investor access to the market remains somewhat constrained.
In Southeast Asia, cryptocurrency adoption follows divergent paths, and institutionalization remains at an early stage. Policy approaches also vary: Thailand provides temporary tax exemptions for trades on licensed exchanges, while Vietnam has granted digital assets legal status and initiated pilot programs. In the Philippines, user numbers are rising, but security risks continue to be a prominent challenge according to recent industry observations.
To adapt, major exchanges in the region are focusing on acquiring licenses, demonstrating proof of reserves, and localizing their operations. Binance, for instance, has secured licenses in more than 20 countries; OKX is pursuing expansion throughout Europe; and HTX is enhancing its international footprint by establishing multiple operational centers globally.
“Asia could become the next major engine for crypto market growth. However, unlocking this potential relies on each country proactively developing solutions tailored to their unique obstacles,” the report emphasizes.
