Cryptocurrency adoption in emerging markets, especially the ASEAN+3 region, has been strong at both institutional and retail levels. With these increased exposures, the likelihood that adverse shocks could spill over from the crypto ecosystem to the region’s traditional financial system is rising. This note documents the pace of cryptocurrency adoption in the ASEAN+3 region, considers its implications for financial stability, and empirically examines the evolving connectedness between cryptocurrencies and the broader financial sector. The findings indicate that linkages are still weak, suggesting that regulators still have time to put guardrails in place to protect financial stability in the region.