Cryptocurrency market may see a potential tailwind in Asia

Cryptocurrency market may see a potential tailwind in Asia

The potential tailwind for East Asia may offer up a potential tailwind as crypto volumes plummeted in the region due to anti-crypto regulations in China, the chainalysis report said.

Hong Kong's growing status as a crypto hub has raised the possibility that it will be a hub for cryptocurrencies in the future.

A crackdown on virtually all crypto activity in the following years saw activity decline drastically over the past few years.

Crypto trading volume has since dropped from one to five in the region.

Over the last few years, it fell behind North America, Western Europe, Middle East and North African nations, Eastern Europe and Central and Southern Asia.

Crypto to fiat on and off ramp through direct exchange of cryptocurrencies between two parties outside of a traditional crypto exchange is possible through OTC desks.

In comparison to other Asian nations like Japan and South Korea, Hong Kong had a greater volume of large transactions of $10 million or more. The high-volume trades accounted for 46.8% of Hong Kong's crypto trades for the year, Chainalysis said.

The 'least institutional-driven market in the region' is South Korea, according to the report.

In Hong Kong and China, it also reads that 'informal, gray market peer-to-peer businesses' and OTC desks are the main mediums of crypto activity.