In Cryptocurrency news today, Asia is home to over 60% of the world’s population. Most cryptocurrency transactions are conducted on the continent, which you probably aren’t aware of. East Asia accounts for around 31% of all bitcoin transactions. According to Mira Christanto’s Asia Crypto Landscape analysis, 6 out of 10 of the top tanking crypto exchanges are situated in Asia.
What makes Asia’s bitcoin industry the most active?
Asia is home to a large number of cryptocurrency miners, traders, consumers, and other participants.
According to a research published in 2020 by Blockchain Valley Ventures (BVV) in Switzerland, Asia accounts for over 95% of bitcoin-based futures trading. According to the research, the region has a history of pricing restrictions, tyranny, and currency devaluation. These conditions make the area ripe for upheaval, allowing bitcoin adoption to flourish.
Cryptocurrency acceptance and trading popularity have also been helped by traditional financial institutions. Due to capital controls, investors in South Korea and China, for example, have turned to cryptocurrencies. Low yields in Japan have prompted widespread adoption. Korea, Hong Kong, Japan, and China all have large liquidity pools, while others have significant development potential.
Other key factors driving bitcoin adoption in Asia include:
— The public market has a high level of investment.
— A technologically aware populace
— The ubiquity of Wi-Fi
— The growing use of electronic payments
– A massive influx of computer science graduates
— Gambling has a high penetration rate.
A Changing Cryptographic Environment
The Asian crypto industry is about to be shattered. According to the Asia Crypto Landscape study, the continent’s cryptocurrency ecosystem is booming. Still not convinced? The following are some key aspects to consider in order to have a better understanding of the situation.
Coinbase’s market capitalization is nearly equivalent to that of Okex, Huobi, and Finance combined.
— Hong Kong is home to some of the world’s top crypto derivatives businesses.
— The Japanese market is significant, representing for a third of worldwide retail exchange rates and Contracts for Difference (CFD) activity.
— A third of South Korean employees have invested in cryptocurrency, making it the country with the highest cryptocurrency penetration.
— When it comes to cryptocurrency legislation, Singapore is one of the more relaxed Asian markets. Know your customer (KYC), anti-money laundering (AML), FATF Travel Rule compliance, and fit and suitable controllers compliance are all strictly enforced.
Asian Exchanges’ Challenges
Despite their rapid expansion, Asian-based exchanges have faced a number of hurdles. Hackers, for example, look for security flaws. In addition, the Asia-based companies have been subjected to regulatory scrutiny.
As a response, the popularity of decentralized exchanges has skyrocketed. Their daily trading volume has now surpassed that of controlled exchanges.
A Chain of Unfortunate Occurrences
In 2020, Kucoin, a Singapore-based cryptocurrency exchange, was hacked. As a result, wallets for ether, bitcoin, and ERC20 were hacked, resulting in a loss of $150 million. To compensate for the loss, the company executed token swaps, thus rendering the cryptocurrency useless.
The CFTC penalized BitMex on October 1, 2020, for enabling US residents to trade on the platform without complying with AML/KYC regulations. BitMex, situated in Hong Kong, is among the most well-known futures exchanges.
In addition, OKex ceased trading in October of last year, sparking market panic. This came when news broke that the creator of the Maltese-Chinese exchange was being investigated by the Chinese authorities.