Singapore’s crypto economy grew 55.4% to $284 billion in the year ended June 2026, bucking a regional contraction and regaining its position as the largest crypto economy in Central and Southeast Asia and Oceania (CSAO), according to Chainalysis. The island city-state’s rise comes as South Korea is now considering a market-making system for digital assets, after a stablecoin linked to the Japanese yen spiked fourfold on a major exchange.
The figures come from Chainalysis data cited by Cointelegraph, which reported the regional roundup. Singapore’s institutional platform activity drove the growth, increasing 94% to $60 billion. That surge was concentrated among a small number of market makers, over-the-counter trading firms, and institutional brokerages. By contrast, the broader CSAO crypto economy contracted 6.8% over the same period.
Singapore’s Institutional Surge
Chainalysis told Cointelegraph that the growth in Singapore’s institutional platform ecosystem was very concentrated. Most of the activity came from existing platforms rather than new services entering the market.
“The growth in Singapore’s institutional platform ecosystem was very concentrated and marked by mostly high-volume activity by existing platforms rather than the dynamic entry of new services,” Chainalysis said.
The report did not break down which specific platforms saw the gains. What is clear is that Singapore’s crypto economy has once again become the dominant force in the region. Its $284 billion in activity puts it ahead of other economies in CSAO, even as the surrounding area shrank.
South Korea’s Market-Making Review
South Korea’s Financial Services Commission (FSC) is weighing a market-making system for digital assets. The move follows an incident involving a yen-backed stablecoin that traded far above its peg on a major exchange.
Crypto exchange Upbit opened trading of JPYC, a yen-backed stablecoin, on Sept. 17. The market opened at 12 Korean won per JPYC before reaching a high of 37.6 Korean won just an hour later. That price was more than four times the stablecoin’s market value.
The FSC’s director of digital finance policy, Yoo Young-joon, said the commission will consider introducing market-making activities to improve efficiency and stability in the digital asset landscape.
“We will also review the need to introduce systems such as market-making activities to increase the efficiency and stability of the digital asset landscape,” Yoo said.
South Korea’s Virtual Asset User Protection Act currently does not exempt market-making from its market manipulation provisions. That means market makers cannot provide liquidity in the country’s crypto markets without running afoul of the law.
MoonPay Expands Into South Korea
United States payments and infrastructure firm MoonPay has launched a South Korean subsidiary. The company will work with local financial institutions on remittances, payments, settlements and digital asset distribution.
MoonPay has yet to receive the required approvals. The subsidiary’s exact scope remains unclear beyond the stated areas of focus.
Binance Pay Arrives In Japan
Binance Pay is expanding its reach in Japan. Eligible overseas users visiting the country can spend more than 100 cryptocurrencies at the vast majority of PayPay-supported merchants starting Wednesday.
The service runs through HIVEX, a payment interoperability framework that connects overseas QR payment services to PayPay-supported merchants in Japan. Binance Pay uses Tether USDt (USDT) as its backend settlement layer. HIVEX settles with PayPay, which then settles merchants in yen.
Binance told Cointelegraph it is the first crypto payment service to access PayPay-supported merchants through HIVEX. Merchants will not need to opt in separately.
PayPay is a Japanese cashless payment service accepted at millions of locations nationwide. It includes major chains, smaller retailers, vending machines, taxis and public transportation. The service lists nine other overseas payment services supported through HIVEX, mainly from China, Hong Kong and Taiwan.
Hong Kong Regulators Sign Cooperation Pact
Hong Kong regulators have signed an agreement to expand their cooperation on financial reporting and audits of licensed crypto firms. The Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) agreed to work together on audit and assurance work.
The agreement establishes a framework for information sharing, case referrals, mutual assistance and coordinated inspections and investigations for licensed crypto firms. The move signals closer coordination between the two bodies on oversight of the city’s crypto sector.
HSBC Rolls Out RedCoin
HSBC is rolling out RedCoin, its new Hong Kong dollar-based stablecoin, in phases. The rollout begins with person-to-person and merchant payments, before expanding into corporate and institutional use cases.
The bank is also launching an education campaign to help the public avoid scams involving the new token. The campaign aims to prevent people from losing their coins to fraudulent schemes.
What The Numbers Show
The Singapore figures are striking. A 55.4% growth in a region where the broader economy shrank 6.8% is a clear outlier. The institutional focus matters too. The $60 billion in platform activity came from a small group of established firms, not from startups or retail traders.
Singapore’s position as the largest CSAO crypto economy is notable. The city-state has repeatedly proven its ability to attract crypto business, and this latest report shows that momentum continuing.
South Korea’s situation is more urgent. A stablecoin trading four times its peg is a warning signal. The FSC’s review of market-making suggests policymakers want tools to manage liquidity and stabilize prices.
Timeline Of Recent Developments
| Date | Event |
|---|---|
| Sept. 17 | JPYC launches on Upbit |
| Sept. 17 | Binance Pay opens to PayPay merchants in Japan |
| Same day | FSC director Yoo Young-joon speaks on market-making review |
| June 2026 | Singapore crypto activity ends, per Chainalysis data |
| Ongoing | MoonPay subsidiary awaits approvals in South Korea |
| Ongoing | HSBC rolls out RedCoin phases |
The timeline shows how quickly events moved. JPYC launched on Sept. 17, and the FSC director spoke the same day about market-making. Binance Pay went live the same day, with the PayPay expansion starting Wednesday.
The Regional Picture
The regional picture is mixed. Singapore is growing. South Korea is reacting to instability. Japan is opening up payments. Hong Kong is tightening oversight. Each country is taking its own path.
Singapore’s dominance is secure for now. The institutional focus means the city-state is likely to remain a center of crypto finance for the foreseeable future.
The FSC’s review in South Korea will be closely watched. A market-making system could reshape how exchanges operate in the country. Until the law changes, however, the current restrictions remain in place.
Key Facts Box
- Singapore crypto activity: +55.4% to $284 billion
- CSAO crypto economy: -6.8%
- Singapore institutional platform activity: +94% to $60 billion
- JPYC peak: 37.6 Korean won (more than four times its peg)
- Binance Pay: first crypto payment service on PayPay via HIVEX
- HSBC RedCoin: Hong Kong dollar-based stablecoin, phased rollout
The key facts box summarizes the most important numbers from the report. The contrasts are stark. Singapore grew while the region shrank. The institutional platforms expanded dramatically, but only a few firms captured the gains.
Why This Matters
The Singapore growth is a signal to investors. The city-state remains a magnet for crypto business, especially institutional work. The report’s concentration of activity among a small group of platforms suggests those firms are consolidating power.
South Korea’s review is a response to a real problem. The JPYC spike showed how quickly a stablecoin can lose touch with its peg. The FSC’s consideration of market-making is aimed at preventing that from happening again.
The regional pattern is one of divergence. Some countries are growing. Others are contracting. The tools each government chooses will shape how their markets develop.
The Bottom Line
Singapore’s crypto economy grew 55.4% to $284 billion in the year ended June 2026, regaining its position as the largest crypto economy in CSAO. The report’s message is that Singapore’s institutional focus is driving growth while the broader region shrinks.
The FSC’s review in South Korea will determine whether the country can build a stable market. The JPYC spike was a warning.
For now, the region’s story is one of two paths. Singapore is growing. The rest of the region is adjusting. The coming months will show which direction the rest of Asia takes.
Source material: “China warns foreign spies about crypto, Singapore dominates Asia: Asia Express,” Cointelegraph.
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