IMAGE: Bitstamp
The cryptocurrency industry is riding a wave of optimism in 2025, fuelled by shifting regulatory landscapes, growing institutional adoption, and the promise of blockchain technology to reshape cross-border financial systems.
Yet, as the sector matures, it faces challenges in achieving consistent regulation and mainstream trust. Leonard Hoh, general manager for APAC at Bitstamp, one of the world’s longest-standing crypto exchanges, shared insights in a recent interview about the evolving market, the impact of global trade dynamics, and Bitstamp’s priorities for the coming months.
This editorial explores the broader crypto industry trends, the opportunities and hurdles ahead, and how Bitstamp is positioning itself to capitalise on APAC’s potential as a crypto hub.
A bullish market fuelled by regulatory shifts
The crypto market has seen a significant uptick in activity over the past two quarters, largely driven by political developments in the United States.
The election of a pro-crypto administration under President Trump has created a more favourable trading environment. “The biggest enabler is the end of the regulatory enforcement era in the U.S.,” Hoh noted, highlighting how the cessation of stringent crackdowns has boosted investor confidence. While the U.S. remains a dollar-dominated financial hub, its policy shifts ripple globally, impacting crypto markets where U.S. players hold sway.
Outside the U.S., regulatory clarity is advancing in key Asian markets like Singapore, Hong Kong and Thailand. These jurisdictions are moving beyond regulating exchanges to establishing frameworks for custodians and stablecoin issuers, creating a robust infrastructure for digital assets.
“In Singapore, the MAS has defined subcategories under the Digital Payment Token (DPT) license since April last year to provide clarity on what it means to be a regulated custodian or issue a stablecoin,” Hoh explained. This clarity attracts both retail and institutional participants, fostering a more stable investment environment.
However, challenges persist. Regulatory inconsistencies across markets create arbitrage opportunities that can destabilise the ecosystem. Hoh emphasised the need for “consistent, stable regulation” to drive long-term investment and innovation. The derivatives market, for instance, remains largely unregulated in many Asian jurisdictions, presenting both a risk and an opportunity for future development.
Institutional adoption: The BlackRock effect
One of the most significant trends in 2025 is the influx of traditional financial institutions into the crypto space. BlackRock’s entry has been a game-changer, signalling to other institutions that digital assets are a viable investment class.
In APAC, players like OSL (backed by institutional money), and banks such as DBS and Standard Chartered, are expanding their crypto offerings, from custody to stablecoin issuance and proprietary trading. “Indirectly, that’s more market participation,” Hoh observed, noting that banks are keen to serve their client base with crypto-related services.
This institutional wave is not without hurdles. Banks and traditional firms must navigate internal compliance processes and convince risk-averse committees to embrace crypto. Moreover, the industry’s reputation, tarnished by past scandals, requires institutions to partner with trusted, regulated players to build credibility. Bitstamp, with its 14-year track record and licenses in Europe, the UK, the U.S.and Singapore, is well-positioned to serve as a reliable counterparty for these institutions.
Opportunities in APAC: Cross-border innovation
APAC’s crypto market is uniquely positioned to leverage blockchain for cross-border financial solutions, particularly remittances and trade.
The region’s large population, fragmented banking systems, and significant remittance flows make it an ideal testing ground for stablecoins and on-chain transactions. “The most exciting use case and economic value that crypto can bring to Asia is cross-border money movement on-chain,” Hoh said, citing firms like Bybit that are facilitating efficient, blockchain-based transfers.
The trend toward “reverse globalisation” or regionalisation of trade, driven by U.S.-China trade tensions, further amplifies this opportunity.
As global trade dynamics shift, Southeast Asia is poised to see increased cross-border money flows, ideally facilitated by stablecoins like USDC or regional non-dollar alternatives. However, realising this potential requires exchanges, banks and regulators to collaborate on listing these tokens and providing the necessary infrastructure.
Staking, another area of innovation, is gaining traction but remains controversial. Hong Kong’s Securities and Futures Commission (SFC) recently announced plans to allow staking for licensed platforms, while Singapore’s MAS permits it for accredited investors and institutions, albeit with case-by-case approvals. “Staking is developing, but it’s not fully defined,” Hoh noted, underscoring the need for clearer guidelines to unlock its potential.
Challenges: Building trust and scaling infrastructure
Despite the optimism, the crypto industry must overcome significant challenges to achieve mainstream adoption.
Trust remains a critical issue, particularly after high-profile operational failures in the past. Bitstamp’s commitment to compliance excellence and long-standing relationships with industry giants has helped it weather market cycles, but the broader industry must follow suit.
“Institutions don’t trust regulation alone; they trust the institutions they partner with,” Hoh highlighted, advocating for collaboration and transparency to build counterparty confidence.
Scalability is another hurdle. While APAC has the population and market demand to drive crypto adoption, the infrastructure—exchanges, custodians, and banking connectivity—must scale to serve the mass market. Regulatory sandboxes, like those in Singapore and Hong Kong, offer a controlled environment for innovation, but firms must balance experimentation with operational reliability to avoid ‘flashpoints’ that could erode trust.
Bitstamp’s priorities: Liquidity, trust and regional support
As Bitstamp approaches its 15th anniversary in 2026, the exchange is doubling down on its role as a trusted, regulated player in the crypto ecosystem.
In APAC, Bitstamp’s priorities include providing exchange liquidity to support local markets, particularly crypto brokers, securities brokers, custodians and stablecoin issuers. “We’re here to support the local market as an offshore licensed player, providing liquidity for whatever they do,” Hoh said.
Bitstamp’s centralised model, with licensed entities in multiple jurisdictions and centralised compliance operations, ensures it can meet regulatory requirements while offering a seamless user experience. The exchange is also focused on deepening relationships with Asian banks and institutions, leveraging its physical presence in markets like Thailand to build trust through face-to-face engagement.
Looking ahead, Bitstamp aims to capitalise on Asia’s potential as a crypto hub by supporting the region’s cross-border use cases and advocating for regulatory clarity. Hoh is optimistic about the timeline for mainstream adoption, predicting 2029 as a pivotal year when blockchain technology becomes embedded in the broader financial ecosystem.
“Asia is in an ideal position with its large population, remittance use case, and Asian-founded crypto firms operating at scale,” he said.
The road to 2029
The crypto industry in 2025 is at a turning point, with regulatory clarity, institutional adoption, and regional innovation driving growth. Yet, achieving mainstream adoption requires overcoming challenges in trust, scalability and regulatory consistency.
Bitstamp, under Hoh’s leadership in APAC, is well-positioned to navigate this landscape, leveraging its legacy of compliance and trust to support the region’s crypto ambitions. As the industry races toward 2029, collaboration between regulators, institutions and innovators will determine whether APAC can cement its role as a global crypto powerhouse.
