Several crypto startups have now started backing US-based firms instead of companies in Asia. Although Asia was a hub for the crypto movement for the past few years, China’s clampdown on crypto-related activities and businesses has rained over the future possibilities.
Analysts have found little to no deals happening in China of late, and have revealed Hong Kong, Singapore, and India to have a majority of crypto businesses in the continent.
Back in September, China declared all crypto transactions to be illegal. The major cities also put a halt on crypto-related mining and banking activities. Up until then, China was the crypto axis, and a majority of startups based around crypto and blockchain technologies looked for capital in the country.
As of today, venture investing in the field of crypto has risen exponentially, starting from $3.1 billion back in 2020, to $21.3 billion up until November of 2021. In the same time frame, new deals in the Chinese market came down by more than 50%.
On the contrary, investments in the USA have risen up to $10.9 billion, reaching almost a sevenfold value. The fourth quarter of the year has seen the best response yet for money invested in upcoming crypto ventures.
Until not too long ago, crypto was an area that companies chose to move into slowly, given the uncertainties behind regulations. But today, venture capital companies are striving to ensure that their employees are fluent with crypto, dubbing it as the future of investment.
How the situation will unfold in Asia over the next year or so, is something we have to wait to see.