Singapore’s crypto economy volume surged 55.4% to reach $284 billion in the 12 months leading up to June 2026. Analytics data from Chainalysis reveals that these capital flows have restored Singapore to its throne as the largest crypto economy in Central and Southern Asia and Oceania (CSAO).
The $284 billion figure stands in stark contrast to the CSAO region as a whole, which recorded a 6.8% contraction in crypto volume over the same period.
However, this influx of fresh capital did not come from retail investors’ pockets.
Institutions and Market Makers Take Over
Institutional platforms accounted for the dominant share, with volume climbing 94% toward $60 billion. Capital flows of this scale were concentrated among a handful of players, ranging from market makers and over-the-counter (OTC) trading firms to institutional brokers.
Meanwhile, market-making operations are under review in South Korea. The Financial Services Commission (FSC) in Seoul is currently reassessing the digital asset market-making system following severe price volatility in the JPYC stablecoin.
Crypto exchange Upbit listed the JPYC token - a stablecoin pegged to the Japanese yen - on September 17 at an initial price of 12 won. Due to thin liquidity in the market, the token’s price soared to 37.6 won, more than four times its actual value.
The liquidity shortage was compounded by South Korea’s Virtual Asset User Protection Act, which has yet to exempt market-making activities from market price manipulation provisions.
Despite the regulatory ambiguity, MoonPay decided to enter the country by establishing a subsidiary offering remittance, payment, and digital asset distribution services. The new entity is currently on standby, awaiting operational approval from South Korean regulators.
China’s Tough Stance and Hong Kong’s Cooperation
Elsewhere, China’s Ministry of State Security issued a warning stating that crypto transactions do not truly guarantee anonymity. Authorities in Beijing alleged that digital assets serve as tools for foreign espionage operations and money laundering schemes.
Hong Kong took a different path by tightening formal oversight of the industry. The Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) signed a dedicated cooperation agreement to audit licensed crypto entities in the territory.
Clear regulatory conditions in Hong Kong prompted banking giant HSBC to prepare the launch of RedCoin, a Hong Kong dollar-pegged stablecoin. The product aims to facilitate peer-to-peer and merchant-level payment settlements in its initial phase before expanding to serve corporate and institutional needs.
For industry players, these capital movements reinforce a familiar pattern. Institutional-scale capital will continue flowing toward jurisdictions offering clear compliance pathways, such as Singapore and Hong Kong, rather than lingering in regions lacking market liquidity guarantees.
Reported via Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
