In spite of China’s crackdown on cryptocurrency, the landscape is very different in other Asia countries. The main reason for this being the case is that crypto is an asset class by itself. This asset is beyond borders and jurisdictions. Asia is a key hub as it drives innovation and large-scale adoption.
Since the initial days of Korea issuing the Kimchi Premium and opportunities for BTC-related arbitrage, Asia’s role in developing new paths to anchor crypto in the future is key. According to reports by Chainanalysis, Asia was responsible for 28% of crypto transaction volume globally. The investment value was a staggering $1.16 trillion in cryptocurrencies in the first 6 months of 2021. Central and South Asia alone drove investment growth 706% year over year. It is the world’s 3rd region for fastest growth.
In 2021, China dominated the headlines with activity bans in the crypto sector. In the rest of the region, however, crypto investment and adoption were on the rise. DeFi innovation and adoption were on the rise, thanks to fundraising. Investors are now more confident about the yield prospects with DeFi. Institutional adoption is also expected to rise in 2022.
China’s stand with regard to cryptocurrency is an expected one, given its capital control policies. The sheer speed of enforcement in recent months tool the industry by surprise, and most players have adapted quickly. Crypto miners moved their operations to the US and Kazhakstan while traders settled in Hong Kong and Singapore. Since crypto innovation and development is not restricted geographically, a fostering environment is what every player looks for.