By the end of 2017, Asian investors accounted for 58.1% of global cryptocurrency trades. In the second quarter of 2018, the number has increased to 77.2%. Asia now accounts for the majority of trades made in the cryptocurrency industry, as seen in the Block0 worldwide cryptocurrency asset trading report. 

Asia Taking The Lead In Cryptocurrency Trade Volume

Cryptocurrency has quickly become a sensation amongst Asian investors.  However, the rest of the investing world and many worldwide governments are still skeptical of the new form of digital currency which Asians are buying!

The exuberance shown by Asian cryptocurrency investors has put Asia at the forefront of the battle raging to decide exactly how cryptocurrency will be regulated and traded.  Investors of the online currency are watching as the rules being promulgated in several countries this year for signals that will give them possible tell in when the currency’s value will begin to rebound. Especially after the hard sell-off in 2018, sending the value of the cryptocurrency market down by a double-digit percentage loss.

Asia’s Role In Blockchain And Cryptocurrency Industries

The dominance in trading activity Asian investors have in cryptocurrency has given Asian countries the leading role in developing the rules and common trading technologies which will likely amalgamate across international boundaries as trading in the currency continues to grow.  One such platform that has grown in popularity is blockchain technology. 

With over 56% of Bitcoin trading activity occurring in Japan versus 22% in the United States, Asian countries are beginning to fully support the blockchain technology platform allowing the platform to grow and costs to operate come down.  Reputable and safe exchanges are also beginning to take root in many Asian countries, like the ever so popular Huobi Exchange. These exchanges are providing a more transparent trading experience and giving many investors more trading confidence, directly leading to larger cryptocurrency investments by individual traders.

Tech-savvy Asian countries led by Japan are also setting the pace of policy direction, standards, and norms of investing in the online currency.  Currently, two schools of thought for how governments should deal with cryptocurrency are battling for supremacy.  The Japanese government has recently instituted a licensing system, which is aimed to successfully regulate and monitor cryptocurrency exchanges. 

On the other hand, Taiwan and Hong Kong have taken a more hands-off approach. Hong Kong, however, has warned platforms to desist from trading anything that could qualify as security without expressed permission.  The Philippines and South Korean governments, like Japan’s government, are both working on heavy regulations expected to roll out by the end of 2018.  Savvy investors will pay attention to the direction these governments give to their regulators due to the impact these regulations will have on cryptocurrency markets around the world.

China Becoming The World’s “Cryptocurrency Hub”

Chinese investors once led the world in Bitcoin investments.  China had even taken the next logical step in creating wealth in cryptocurrency, by offering incentives for blockchain-centric companies to move their operations to Chinese cities. These incentives included free office space and free rent for up to three years.  Companies moving their operations to China brought wealth and investments to Chinese banks, as well as creating high-paying, attractive jobs for young, educated locals with a high earning potential.  

These crypto-friendly policies made China the major hub for cryptocurrency trading. However, as fraudulent activity and cybercrimes escalated, the Chinese government, began a major crackdown earlier this year to stop platforms from offering the currency to Chinese investors. 

The Chinese government has recently gone so far to cut all power to Bitcoin miners, outlawed local digital asset exchanges, and restricted access to overseas exchanges.  The Chinese Central Bank has boasted that these measures have virtually killed the Bitcoin market and was responsible for the sell-off in cryptocurrency this year.  

Amna El Tawil is an experienced journalist with a strong background in financial writing. She is a cryptocurrency enthusiast and has been writing about digital currencies since 2016. When not writing, Amna can probably be found in bed with a book cuddling with her beloved Siberian Husky.


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