Korea's $449 bil. crypto economy leads in East Asia: Chainalysis

Korea's digital asset economy reached $449.1 billion from July 2025 to June 2026, the largest in East Asia, data showed Tuesday, as retail investors increasingly turned to artificial intelligence (AI)-related cryptocurrencies.

According to global blockchain data platform Chainalysis' report, "East Asia Crypto Adoption Report: South Korea's AI Trade Comes to Crypto," Korea's crypto economy grew 12.3 percent from the previous one-year period to record $449.1 billion. Japan followed at $228.3 billion, with Hong Kong at $192.2 billion, China at $176.3 billion and Taiwan at $140.4 billion.

The growth came largely from Korea's retail-driven crypto market, even amid limited participation by major financial institutions.

The report highlighted AI-related cryptocurrencies as one of the clearest signs of that retail enthusiasm. As Korean investors piled into shares of Samsung Electronics and SK hynix amid an AI-fueled stock market rally, they also poured money into digital assets linked to AI-focused projects and infrastructure.

As of June 2026, AI-related cryptocurrencies accounted for about 18 percent of all Korean won-denominated crypto trading, the largest share among major thematic asset categories. The figure was even higher than the share of payment-related cryptocurrencies such as Ripple.

"This share makes Korea an outlier both in East Asia and globally," the report said. "Korean retail traders are moving through this category faster and at higher intensity than any other market we measure."

The contrast with other markets was stark. AI-related cryptocurrencies accounted for just 0.91 percent of yen-denominated trading in June 2026, making the Korean won share roughly 19.5 times higher. Korea's figure also far exceeded the corresponding shares in trading denominated in the Brazilian real, British pound and euro.

Among AI-related cryptocurrencies in Korea, Worldcoin recorded the highest trading volume at $7.41 billion, followed by Sahara AI at $3.2 billion, Virtuals Protocol at $2.7 billion, Bio Protocol at $2 billion and NEAR Protocol at $1.7 billion.

The report said Korea's crypto market could look significantly different in 2027, when a long-delayed 22 percent crypto tax is scheduled to take effect as corporate access to the market expands. Greater institutional participation could "become a meaningful counterweight for the first time" if retail activity weakens, it said.

The report also highlighted differing market structures across East Asia. In Hong Kong, inflows through institutional platforms accounted for 16 percent of total inflows into crypto services, while decentralized exchanges made up 34.5 percent of Japan's overall crypto services market. In China, an estimated 59.1 percent of the digital asset economy was driven by peer-to-peer fund flows.