Japan's recent policy changes have led to a 120% year-on-year increase in crypto adoption, according to Chainalysis. In the past year, Japan emerged as the strongest market in the Asia Pacific region, benefiting from a surge in trading volumes, particularly following the US presidential election. Regulatory reforms are aligning crypto laws more closely with traditional financial regulations and adjusting taxation rules, which have previously restricted stablecoins. Notably, Japan's regulatory environment is evolving positively, contributing to this growth. Meanwhile, other APAC countries like Indonesia and South Korea also showed significant growth in crypto adoption. Stablecoins are becoming essential in the region, with expectations of future favorable policies boosting market activity. Each APAC market has unique pathways into crypto, largely influenced by local use cases such as remittances and inflation hedging. Chainalysis predicts continued growth in the region as stablecoins gain traction and regulatory frameworks mature.

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