Crypto trading in mainland China and Hong Kong drops along with East Asia activity, but adoption continues: report
Cryptocurrency trading volume was down in mainland China, Hong Kong, South Korea and Japan in the year through June, according to ChainalysisHong Kong’s embrace of crypto markets has also ‘fostered bubbling optimism’ in the region, providing a ‘potential tailwind’Digital currenciesXinmei ShenPublished: 9:00pm, 2 Oct, 2023Why you can trust SCMP
Cryptocurrency activities in East Asia have declined in recent years since Beijing’s crackdown on the market, but Hong Kong’s new virtual asset-friendly policies offer a glimmer of hope in the region, according to research firm Chainalysis.
The value of cryptocurrency transactions in both mainland China and Hong Kong dropped over the past year as Beijing maintained a strict ban on the assets in the mainland and amid an extended crypto market slump, new Chainalysis data showed.
From July 2022 to June 2023, mainland China saw US$86.4 billion worth of cryptocurrency transactions, a major plunge from the US$220 billion traded in the same period a year earlier, according to a report published by the analytics firm on Monday.
Hong Kong, which the firm called “an extremely active crypto market”, received an estimated US$64 billion in crypto transactions for the year, rivalling trading in the mainland with just 0.5 per cent of its population, Chainalysis noted.