Hong Kong crypto market leads to $64 billion in activity

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Hong Kong crypto market leads to $64 billion in activity

The Hong Kong crypto market, despite the territory having a much smaller population and the worldwide chill through crypto markets, led to $64 billion in volume in the past year, not too far below China's $86.4 billion.

Although data shows that the value of transactions in both China and Hong Kong have dropped in recent years because of Beijing's continued strict prohibition on crypto assets and a prolonged downturn in the crypto market, Chainalysis asserts that the presence of large OTC markets - and their relative stability in the face of both regional and global decline - shows a certain degree of tolerance by Beijing to crypto.

''Soaring status as a crypto hub may indicate that the Chinese government is reversing course on digital assets or at least becoming more open to crypto initiatives,'' the report said, adding that ''s growing status as a crypto hub may signal that the Chinese government is reversing course on digital assets.

Chainalysis said Hong Kong dominates in large institutional crypto transactions compared to other Asian regions. The data reveals that 46.8% of Hong Kong's annual crypto trades were institutional transactions exceeding $10 million, while retail trades under $10,000 were just 4% of the city's volume, marginally below the global average of 4.7%.

In contrast, South Korea is a strong supporter of retail trading on centralized exchanges, with 'professional' traders between $10,000 and $1 million in transaction volume making up 40% of the transaction volume.