China remains the most active region in the cryptocurrency industry, with Chinese miners controlling 65% of Bitcoin’s hashrate, according to a new report from analyst firm Messari.
Messari analyst Mira Christanto has prepared Asia’s Crypto Landscape report, which examines the funds, exchanges and trading habits of the world’s largest cryptocurrency market – Asia. China has the most influence in the region, despite tough regulation.
Chinese miners control 65% of Bitcoin’s hashrate. The aggregate hash rate of China dwarfs other major market players such as the United States (7.24%), Russia (6.9%) and Venezuela (0.43%). Despite the fact that China banned margin trading on cryptocurrency exchanges in 2017, the industry continues to thrive, although its members are “acting with caution.”
Asia accounts for 43% of global cryptocurrency transactions, with a total value of about $ 296 billion. East Asia accounts for the majority of this amount, while the markets of Eastern Europe and Latin America account for 12% and 7%, respectively.
China’s role as a major player in the cryptocurrency market is partly related to currency controls in the country. Chinese citizens are legally allowed to buy up to $ 50,000 in foreign currencies per year, and Chinese residents bypass this restriction by using stablecoins.
“As a result of the restrictions, the US dollar-backed stablecoin market is booming in China as it opens up the possibility of gaining access to dollars,” the report said.
The most popular stablecoin in China is Tether, whose capitalization grew by $ 2 billion in the first half of January. Messari analyst also notes that there are more institutional investors in Hong Kong than in any other country in Asia who know how traditional investment instruments work and are interested in investing in cryptocurrencies.
At the same time, cryptocurrency investors in South Korea show the highest level of interest in cryptocurrencies, and a third of working citizens declare that they are investing in cryptoassets. Also, in Japan, many traditional banks are investing in the cryptocurrency industry.
The report says Vietnam has the strictest regulations in the region – cryptocurrency is banned as a means of payment, and state and securities firms cannot participate in the cryptocurrency industry.
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