Asia takes credit for the 43% of global cryptocurrency transactions, and China is where most of it is happening.
China remains to be the unbeatable king of the Bitcoin market, a new report by cryptocurrency by data provider Messari says.
The report entitled, “Asia’s Crypto Landscape” by analyst Mira Christanto, has been released today and studies the funds, exchanges, and trading habits of Asia; the world’s biggest crypto market. And the country that has the most influence in the region, China, is still going strong, notwithstanding a regulatory breakdown.
The country controls 65% of Bitcoin’s hashrate (a measure of how much computing power is used to mine Bitcoin). For a country whose government is hard “Bitcoin friendly,” the combined hashrate dwarfs big market players like the US (7.24%), Russia (6.9%), and Venezuela (0.43%).
Messari emphasizes how even though China banned Bitcoin trading on exchanges in 2017, crypto remains to thrive with a “fringe” industry that “operates cautiously.” Binance, the world’s biggest crypto exchange was founded in China, although it moved its headquarters since then.
The report said that Asia has got 43%of global cryptocurrency transactions – or around $296B – with East Asia taking up most of the figure. Compared to Eastern Europe (12%) or Latin America (7%), which are huge markets, Asia is still a much bigger player.
Why is China a big player in the crypto market, with one of the world’s biggest development communities? This is because of the currency controls: China only allowed individuals to buy up to $50,000 in foreign currencies per year, so the country’s citizens are finding a way around it – using stablecoins.
The biggest cryptocurrency in China is Stablecoin Tether – which is driving the East Asian market.
Messari’s report also stated that more than any country in Asia, Hong Kong has more institutional investors who know how traditional investment instruments work.
Meanwhile, South Korea has the biggest penetration of crypto investors, with several workers saying that they invested in crypto… Then in Japan, some traditional banks are investing in the space, compared to other countries in the region.
Vietnam has the strictest rules in the region, the report states, with crypto banned as a means of legal payment and public companies and securities firms not allowed to join in crypto transactions.
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