Sumsub’s ‘State of the Crypto Industry 2025’ report sees strong regulations and innovation in APAC, with fraud rates dropping by 23%.
Verification platform Sumsub released its State of the Crypto Industry 2025 report, which offers insights into major trends, challenges, and innovations shaping the crypto landscape.
Asia-Pacific Leads in Combating Crypto Fraud
According to the report, Asia-Pacific (APAC) continues to lead global efforts in combating fraud, achieving a 23% decline in fraud rates from 2023 to 2024. This makes it the only region to see a reduction in crypto-related fraud.
On average, APAC’s fraud rate, across crypto platforms stands at 2% with Hong Kong and Singapore reporting even lower fraud rates of 1.1% and 1.4% respectively. This reflects the region’s proactive regulatory measures and advancements in fraud prevention technologies.
Innovation Fuels Improved Compliance
In addition to regulatory advancements, innovations like biometric checks and AI-backed automation have also helped streamline processes, making onboarding faster, while also reducing drop-off rates. Pass rates — the percentage of users who successfully pass verification, excluding fraudulent attempts, have also increased.
Hong Kong achieved the highest pass rate globally, at 98%. Other countries in APAC with high passing rates include Malaysia and Japan (97%) and Korea and New Zealand (96%).
The Rise of Non-Doc Verification
Document-free (Non-Doc) identity verification is also quickly gaining traction in the region. While it is still a relatively new method, 25% of companies in APAC have already adopted Non-Doc verification.
Countries that have implemented this technology are seeing an average improvement of 3.6% in verification times.
“It’s no surprise that Asia-Pacific is at the forefront of the global fight against crypto fraud,
as the region has long been a pioneer in establishing clear regulatory frameworks and
fostering innovation. Once deemed the ‘Wild West,’ crypto is now at an inflection point,”
said Penny Chai, VP of Business Development at Sumsub.
“However, as crypto adoption continues to expand across the region, businesses must remain vigilant by adopting robust onboarding technologies, enhancing security measures to protect users from fraud, and ensuring compliance to safeguard their operations and reputations.”
Read the report here.
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