Get Free Airdrops and Crypto boxes
Read us in Google News
Join WhatsApp channelA recent report by blockchain analytics firm Chainalysis reveals that Hong Kong leads Eastern Asia in cryptocurrency adoption, with an 85.6% year-over-year growth. The city ranks 30th globally in crypto adoption, underlining its emergence as a major player despite mainland China’s restrictive policies.
Hong Kong Leads Eastern Asia’s Crypto Surge
Hong Kong’s position as a growing crypto hub is solidified by an 85.6% rise in adoption, as reported by Chainalysis. This significant growth has propelled the special administrative region to the 30th spot in the global crypto adoption index. Eastern Asia, as a whole, remains a formidable player in the crypto landscape, contributing 8.9% of global crypto value received between July 2023 and June 2024, with on-chain value exceeding $400 billion during this period.
China’s Crypto Environment Amid Crackdowns
China’s stringent cryptocurrency regulations, initiated in 2021, have not deterred its citizens from finding alternative ways to engage with crypto. The report points to a shift toward over-the-counter (OTC) platforms and peer-to-peer (P2P) networks, particularly since mid-2023. High fees associated with traditional money transfer methods have pushed more individuals toward crypto as a faster and cheaper alternative.
Ben Charoenwong, associate professor of finance at INSEAD’s Asia Campus, commented on the trend, noting that “the increasing use of OTC crypto in China suggests that people are looking for faster options to move money.”
Hong Kong’s Crypto-Friendly Regulatory Framework
Unlike mainland China, Hong Kong has fostered a more flexible regulatory environment for cryptocurrency. The introduction of a new framework for crypto trading platforms in June 2023 by the state’s securities regulator has further cemented its position as a regional hub. This framework not only ensures compliance with anti-money laundering (AML) standards but also attracts institutional investors seeking a safe, regulated way to engage in crypto.
Notably, stablecoins accounted for over 40% of the value received each quarter in Hong Kong, reflecting the growing demand for secure digital assets. As regulatory clarity increases, the region is poised to continue driving crypto adoption in Eastern Asia.
