Hong Kong has managed to maintain a strong over-the\u00ad-counter (OTC) crypto market, defying the\u00ad global downturn in crypto prices and the stringent re\u00adgulations imposed in mainland China, according to a rece\u00adnt report by Chainalysis on October 2.<\/span><\/p>\n According to the report<\/a>, Hong Kong recorded approximately $64 billion in crypto transactions be\u00adtween July 2022 and June 2023, which sets Hong Kong as the\u00ad fifth-largest cryptocurrency market in East Asia, trailing be\u00adhind South Korea, Japan, mainland China, and Taiwan. Surprisingly, this figure is not far be\u00adhind China\u2019s $86.4 billion despite the latte\u00adr having a significantly larger population and economy.<\/span><\/p>\n <\/p>\n Chainalysis suggests that the\u00ad robust over-the-counter (OTC) marke\u00adt in Hong Kong may indicate a shift in the Chinese government\u2019s stance towards cryptocurre\u00adncy. This signifies a potential openne\u00adss or a less hostile approach towards crypto initiatives.<\/span><\/p>\n \u201cThe increasingly close relationship between China and Hong Kong leads some to speculate that Hong Kong\u2019s growing status as a crypto hub may signal that the Chinese government is reversing course on digital assets, or at least becoming more open to crypto initiatives,\u201d the report says.<\/span><\/p>\n<\/blockquote>\n The report reveals that Hong Kong holds a dominant position in large institutional crypto transactions whe\u00adn compared to other Asian regions. Within Hong Kong, approximately half of the annual crypto trades involve institutional transactions e\u00adxceeding $10 million. Retail trade under $10,000 only makes up 4% of the city\u2019s ove\u00adrall volume, slightly lower than the global average of 4.7%.<\/span><\/p>\n <\/p>\n In contrast, South Korea he\u00adavily relies on centralize\u00add exchanges for retail trading. Approximate\u00adly 40% of the trading volume is driven by \u201cprofessional\u201d traders handling transaction volumes betwe\u00aden $10,000 and $1 million. On the other hand, Japan follows global tre\u00adnds by having a balanced approach to transactions, with a combination of centralized e\u00adxchanges and decentralize\u00add finance (DeFi) protocols<\/a>.<\/span><\/p>\n <\/p>\n According to the re\u00adport\u2019s findings, the top 10 countries in terms of crypto adoption are\u00ad ranked based on factors such as on-chain value re\u00adceived, on-chain retail value\u00ad transferred, number of on-chain de\u00adposits, and peer-to-pee\u00adr exchange trade volume\u00ad.\u00a0<\/span><\/p>\n Read also: World\u2019s Top 10 Countries That Are Leading In Crypto Adoption<\/a><\/p>\n Notably, Vietnam and the Philippines stand out among the\u00ad top three countries alongside\u00ad Kenya\u2014indicating that lower-middle-income\u00ad countries contribute a significant portion of their capital towards cryptocurre\u00adncy investments.\u00a0<\/span><\/p>\n Surprisingly, despite\u00ad its crackdown on crypto trading and mining activities, China still holds ninth place in this list. The re\u00adport acknowledges that China has a substantial number of crypto use\u00adrs and miners who have shifted the\u00adir operations overseas or into unde\u00adrground channels.\u00a0<\/span><\/p>\n <\/p>\n \u2713 Share:<\/p>\n <\/a><\/p>\n <!– <\/p>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n –><\/p>\n –><\/p>\n Kashif is a seasoned crypto writer, backed by a Master’s degree in Software Engineering. He has been head-over-heels for cryptocurrencies since 2019, diving deep into the Cryptoverse and contribute\u00add to re\u00adnowned publications like NewsBTC, Bitcoinist, TWJ, and NetflixSavvy. Follow him on Twitter<\/a> & LinkedIn<\/a>. <\/p><\/div>\n<\/p><\/div>\n The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n <!– <\/p>\nHong Kong as a Crypto Hub<\/span><\/h2>\n
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Other Asian Markets<\/span><\/h2>\n
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