A report from Messari proves that 43% of the world's cryptocurrency transactions are in the Asia-Pacific region. China is the leader in cryptocurrency activity, controlling 65% of Bitcoin's hashrate
The aggregate Chinese hashrate dwarfs many of the major players in the bitcoin mining market. Suffice it to compare with the following figures:
- USA (7.24%);
- Venezuela (0.43%);
- Russian Federation (6.9%).
The report says China has strong support for the cryptocurrency despite tough regulations and China's 2017 ban on-exchange trading. However, the cryptocurrency topic is thriving in China. Blockchain projects are actively working in the country, and its own CBDC is being created.
Why is China playing such an important role in the market? This fact is directly related to currency control. Chinese citizens cannot buy over $50,000 in foreign currency annually.
Therefore, the Chinese invest additional funds in stablecoins and other cryptocurrencies. This market is booming. Moreover, Tether is in great demand in China.
Cryptocurrency topic in Asia
Asia accounts for a total of 43% of global cryptocurrency transactions, which is $296 billion. Most of the amount ends up in East Asia. It cannot be compared to other major world markets. For example, Eastern Europe accounts for 12%, while Latin America only 7%.
It is also indicated that there are more institutional investors in Hong Kong than in any other country in Asia. They know well how traditional investment instruments work and know how to work with cryptocurrency.
In South Korea, no fewer people are interested in cryptocurrencies. At least a third of investors invest their money in cryptocurrencies.
In Japan, traditional banks are investing in the cryptocurrency industry. Despite strict regulation, Vietnam is actively involved in cryptocurrencies and blockchain technologies.