Hong Kong has managed to keep up a powerful over-the-counter (OTC) crypto market, defying the world downturn in crypto costs and the stringent regulations imposed in mainland China, in response to a recent report by Chainalysis on October 2.
In line with the report, Hong Kong recorded roughly $64 billion in crypto transactions between July 2022 and June 2023, which units Hong Kong because the fifth-largest cryptocurrency market in East Asia, trailing behind South Korea, Japan, mainland China, and Taiwan. Surprisingly, this determine just isn’t far behind China’s $86.4 billion regardless of the latter having a considerably bigger inhabitants and economic system.
Hong Kong as a Crypto Hub
Chainalysis means that the sturdy over-the-counter (OTC) market in Hong Kong could point out a shift within the Chinese language authorities’s stance in the direction of cryptocurrency. This signifies a possible openness or a much less hostile method in the direction of crypto initiatives.
“The more and more shut relationship between China and Hong Kong leads some to invest that Hong Kong’s rising standing as a crypto hub could sign that the Chinese language authorities is reversing course on digital property, or at the least turning into extra open to crypto initiatives,” the report says.
The report reveals that Hong Kong holds a dominant place in giant institutional crypto transactions when in comparison with different Asian areas. Inside Hong Kong, roughly half of the annual crypto trades contain institutional transactions exceeding $10 million. Retail commerce underneath $10,000 solely makes up 4% of the town’s overall quantity, barely decrease than the worldwide common of 4.7%.
Different Asian Markets
In distinction, South Korea heavily depends on centralized exchanges for retail buying and selling. Approximately 40% of the buying and selling quantity is pushed by “skilled” merchants dealing with transaction volumes between $10,000 and $1 million. Then again, Japan follows world trends by having a balanced method to transactions, with a mixture of centralized exchanges and decentralized finance (DeFi) protocols.
In line with the report’s findings, the highest 10 international locations by way of crypto adoption are ranked based mostly on elements equivalent to on-chain worth received, on-chain retail worth transferred, variety of on-chain deposits, and peer-to-peer alternate commerce quantity.
Learn additionally: World’s High 10 Nations That Are Main In Crypto Adoption
Notably, Vietnam and the Philippines stand out among the many high three international locations alongside Kenya—indicating that lower-middle-income international locations contribute a good portion of their capital in the direction of cryptocurrency investments.
Surprisingly, regardless of its crackdown on crypto buying and selling and mining actions, China nonetheless holds ninth place on this record. The report acknowledges that China has a considerable variety of crypto users and miners who’ve shifted their operations abroad or into underground channels.
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