Although Bitcoin is still officially banned in China, the country represents the most significant part of BTC trading volume, says new research. In addition, the most populous continent in the world, Asia, occupies the largest market share, whale activity and largest businesses.
China is giant in the cryptocurrency market
The government of China has repeatedly stated that Bitcoin is officially banned within the country's borders. However, the country remains one of the largest and most important players in the development of cryptocurrency.
As previously reported, China accounts for more than 60% of BTC's hash rate meaning that most bitcoin mining takes place in the country.
Analysis firm Messari has compiled a report to put China's dominance in numbers. In addition to the most substantial group of miners, the most populous nation on the planet has huge crypto-development communities and is home to “three of the largest exchanges in the world”.
However, the study admitted that the government's “hostile narrative” against the field of digital assets has caused local investors to maintain less BTC. Instead, they focused on bigger and more frequent negotiations.
“This did not prevent Chinese stock exchanges from having one of the largest market shares in the world” in terms of turnover. “East Asia (mainly China) is dominated by larger businesses, with 90% of all volumes above US $ 10,000. East Asia engages in more short-term trades on a wide variety of assets, compared to North America, where the focus is more on long-term bitcoin holdings. ”
Binance, Huobi and OKEx have the largest market share. Source: Messari and CryptoPotato.
It is important to note that regulatory repressions in the industry and prominent individuals have continued. Reports emerged in 2020 that China Merchant Bank had frozen bank accounts belonging to users involved in cryptocurrency activities.
In addition, the authorities reportedly took the founder of OKEx into police custody while investigating the broker.
On the other hand, the Asian country has significantly accepted blockchain the underlying technology behind bitcoin.
President Xi urged the nation to increase investments in technology in 2019, which resulted in several new projects. Probably the best known is the Blockchain Service Network (BSN). The document highlighted that it functions as a “standardized development environment within a technical network approved by the government” and has already integrated 24 blockchains.
Asia, home to the largest unicorns and tokens
The Messari document also took a broader approach to examining the behavior of developers, investors and users across the Asian continent. In addition to the Chinese dominance already mentioned, other countries in the region, such as India, Japan, Hong Kong, South Korea and Singapore, took a substantial share of the cryptocurrency market.
“With Asia representing 60% of the world’s population, infrastructure companies around the world are interested in exploring the growing market. At the end of last year, six of the ten largest crypto unicorns in the world were located in Asia. ”
The study also said that “of the top 20 token-based projects, 42% of the market capitalization is based in Asia,” according to data from mid-January 2022.
Chinese market dominance. Source: Messari and CryptoPotato.
Asian companies also dominate futures markets. The survey concluded that these companies account for 98% of ETH futures trading volumes and 94% of BTC futures.
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