Recently, Messari Crypto Researcher, Mira Christanto, published a report that takes an in-depth look at Asia’s cryptocurrency landscape as 60% of the world’s population resides in the region. Christanto’s study shows that six of the ten largest cryptocurrency unicorns are in Asia. Furthermore, 98% of ethereum-based futures and 94% of bitcoin futures volumes come from Asia.
Asia’s financial landscape is ready for disruption
When it comes to cryptocurrencies, Asia has a large number of cryptocurrency users, companies, miners, merchants, and more. The cryptocurrency and blockchain researcher from messari.io, Look Christanto, explains that Asia has a “history of dictators, currency depreciation, [and] capital controls, all set for disruption. ”This has likely led to Asia being the most active cryptocurrency market, according to recent Christanto findings.
His recently published study called “Asia’s Crypto Landscape” covers the “key exchanges, funds and market makers that define cryptocurrencies in China, Japan, Korea, Hong Kong, Singapore and Southeast Asia, with commentary on investment and regulatory trends. “. Countries like China, Japan, Hong Kong, India, South Korea, Singapore, the Philippines, Thailand, Indonesia, Vietnam, Malaysia, and more are covered in the 98-page study.
“Leading crypto countries, such as China, Japan, Korea, Hong Kong, and Singapore, have large pools of liquidity, while other countries have great potential to scale,” says the Christanto report. “The nature of traditional finance has played a key role in the adoption of cryptocurrencies: capital controls pushed investors toward cryptocurrencies in China and South Korea, while low returns drove adoption in Japan,” he added .
“At the end of 2019, six of the ten largest crypto companies in the world were located in Asia,” data from Christanto shows. “As of January 12, 2021, of the top 20 token projects based, 42% of the market capitalization is based in Asia. Asia plays a huge role in the crypto markets for a variety of reasons. “
Christanto’s report continues:
Each country has its own nuances, but factors include a high penetration of investment in the public market, high-tech pedigree, prevalence of WiFi, deep penetration of electronic payments, propensity to gambling, and a high percentage of computer science graduates. In addition, the development of Asia as a financial center has contributed to the progress of fintech companies. Japan, Shanghai and Hong Kong are among the top five largest equity markets in the world.
Asia’s thriving crypto landscapes
Some key factors from Christanto’s study show:
- Binance, Huobi, and Okex combined have roughly the same bitcoin holdings as Coinbase.
- Hong Kong is home to some of the largest crypto derivatives companies in the industry.
- Japan is a single market with the largest retail foreign exchange industry, accounting for one-third of the global retail volume of foreign exchange (FX) and Contract for Difference (CFD).
- South Korea has the highest penetration of crypto investors with a third of workers invested in crypto.
- Singapore is one of the most lax Asian markets for crypto-specific regulations, although it is strict on AML, KYC, fit and proper drivers, and compliance with the FATF Travel Rule.
- The Philippines has one of the largest populations of foreign workers in the world, ranking fourth among the world’s remittance recipients.
Asia’s Crypto Landscape findings also indicate that a large number of Asian countries have thriving landscapes, and all for different reasons. For example, Vietnam’s capital controls “mean that the cryptocurrency spot market operates in isolation,” says Christanto. The Vietnam market is driven by retail, the report notes, and “when bitcoin prices are volatile, the Vietnam market lags a couple of days.”
In Malaysia, Luno is the main stock exchange in the country, as the company founded in 2013 in Cape Town, South Africa, dominates there along with Singapore. Christanto and messari.io’s research was also assisted by independent blockchain infrastructure platform Blockdaemon.
Mira Christanto’s messari.io research report on the Asian crypto landscape can be read in its entirety here.
What do you think of Christanto’s 98-page study covering the Asian crypto landscape? Let us know what you think on this topic in the comment section below.
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