China's crypto activity rivals that transferred to Hong Kong

China's crypto activity rivals that transferred to Hong Kong

China may be aiming for a cryptocurrency comeback as one of its neighboring nations adopts a more welcoming stance towards blockchain.

Cryptocurrency platform Chainalysis, a newly established data platform, found that recent crypto volume transfer to Hong Kong has rivaled that transferred to mainland China over the past year, despite hosting only 0.5% of the latter's population.

The trend may signal that the Chinese government is reversing the course on digital assets, or at least becoming more open to crypto initiatives. Thus far, most activity remains 'over the counter' - a private environment designed for large institutional transfers not to affect the market.

China boasted a greater share of'retail' volume than Hong Kong, which boasts figures of 8.5% and 4%. China also had a much larger share of 'professional' size transfers at 34.8%, compared to Hong Kong at 25.1%.

Cryptocurrency activity in China is still centralized, whereas most of Hong Kong's is connected to DeFi.

Chainalysis's APAC Policy Chief, Chengyi Ong, said that China's approach to banning all cryptocurrency transactions-despite slowed activity-ultimately doesn't work.

In the period analyzed, Eastern Asia accounted for 8.8 percent of global crypto activity.