Cryptocurrency is reportedly banned in China, but the recent data shows it is home to a people who represent a significant portion of Bitcoin trading. Asia has the biggest share in the crypto market share, according to the report.
China’s Major Share in Mining and Crypto Trading
According to a report published by on-chain analytics firm Messari, China represents a significant share in mining and crypto investment. Furthermore, three of the largest cryptocurrency exchanges are also situated in the country.
China’s government has a rigorous narrative towards Bitcoin that limited people in putting money on the largest cryptocurrency. Besides the ban, the residents are not stopping from investing in the leading digital currency.
The analyzed data unveils almost 90% of BTC trades in China are above $10,000. However, investors residing in East Asia are interested in short-term holding. On the other hand, North America is home to investors who likely bet on the long-term run.
It is also noticed that government authorities are taking harsh measures in containing crypto industry in the region. In 2020, it reported that China Merchant Bank blocked accounts that were linked with cryptocurrency in one way or the other.
Recently, the Chinese police arrested OKEx’s founder when the investigation against the crypto exchange was going on.
Messari’s report has also observed a major inflow of crypto investments from the Asian continent. Countries, includingHong Kong, India, Singapore, Japan, and South Korea, are now responsible for substantial chunk in the global crypto market capitalization.
The headquarters of the top ten crypto companies are situated in Asia. Messari found out that 42% of the market cap of leading 20 coins is controlled by investors based in Asia. What’s more, Asia-based futures trading companies comprise 94% of BTC trading and 98% of ETH trading.
However, the Chinese president, Xi, has asked concerned tech departments to work on new emerging technologies such as blockchain. As a result, a large number of blockchain-based companies emerged in the market.
Out of all, blockchain project, known as Blockchain Service Network (BSN) emerged. The BSN is an integrated network designed to connect different blockchains. According to a report, it has successfully integrated twenty-four blockchains so far.
China has made enormous progress in rolling out government-based digital currency. After various feasibility tests in central provinces, the digital yuan is ready to open for the public.