How Big is the Crypto Market In Asia?
Cryptocurrency, often called crypto, is based online and therefore available across the world. It is a virtual currency that does not have a centralized regulator or issuing authority. Therefore, crypto does not rely on a back to verify transactions, they are recorded in a public ledger called blockchain. Bitcoin is perhaps the most famous example of crypto having been founded in 2009. Anyone with an internet connection can buy and sell crypto but just how big has the market become in Asia?
Crypto in Japan
As of May 2022, there were 23 regulated crypto exchanges in Japan and new regulations have been introduced in the country. Amendments have been made to the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA) and that means unlicensed crypto trading platforms will have to remove themselves from the Japanese market. The main reason these new regulations have been introduced is because of the popularity of crypto in Japan. The cryptocurrency trading market in Japan is said to be worth close to $1 trillion, which is an enormous amount of money. Crypto can be used for trading, buying products, and playing games in Japan. There are several top bitcoin casinos in Japan where you can make deposits using crypto and play games. These all come with bonuses and online gambling is one of the many uses of crypto in Japan.
Crypto in China
Reports suggest Asia accounts for 43% of global cryptocurrency transactions and in terms of individual countries, China is leading the way. This comes despite a regulatory crackdown on crypto over the past few years to stop money laundering. However, normal cryptocurrency transactions are not illegal and continue to be made in China. In fact, there has long been talk of the country launching the digital yuan and the mining of crypto is mostly in China. If we look at some figures from 2021, 65% of the computing power used to mine bitcoin is in China and that compares to just over 7% in the United States. Interestingly China allows people to buy a maximum of $50,000 worth of foreign currencies each year and this partly explains why crypto is so popular in the country. Crypto trading is being used as a method to get USD exposure and this is a great way for people to get around the $50,000 foreign currency limit.
Crypto in South Korea
Moving to South Korea and people are keen to invest in crypto. A survey of 1,885 workers conducted in 2021 showed 40.4% had invested in cryptocurrency and it is those between the ages of 30 and 39 who are the most active in South Korea. Many South Korean people believe the future of finance lies with crypto and that is why the market is so big in the country. Some other factors are also in play, including the fact South Korea are usually at the forefront when it comes to the acceptance of innovative technology. For those who might be a little wary of the political climate in South Korea, crypto is an investment that is not going to change due to the ongoing threat of North Korea. Furthermore, with an unpredictable future in terms of employment, many young people are choosing to invest in crypto now. The valuation of the crypto market in South Korea was $45.9 billion at the end of 2021 and is expected to grow.
Looking at the three countries highlighted above, it becomes apparent the crypto market is huge in Asia. Crypto has a significant role to play in the lives of many people in Japan, China, and South Korea.
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