Sunday, February 5, 2023

China, South Korea & Japan: The Crypto Influencers

The three most influential countries that drive the global cryptocurrency market are China, South Korea and Japan. A few years ago, when China banned the trading of Bitcoin, the price of the world’s largest digital currency by market capitalization, slumped down. If reports are to believed then these three countries have some of the best cryptocurrency investors who encourage the market.

Now, many countries have started working on their own digital currency in which China is leading. South Korea, following the footstep of China, is soon planning to introduce a state-sanctioned cryptocurrency fund.

Growing Instutional Demand of Cryptocurrency

According to a report, compared to the US and Europe, the institutional demand for cryptocurrency has been increasing in South Korea. If that demand leads to significant capital flow into the crypto market of South Korea, then the global market would also experience additional power throughout the year.

Jonathan Lyu, the CEO of KuCoin in Seychelles, when asked about the status of digital money in Asia, said that some of the top coins like Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE) are currently considered to be the best crypto trading assets around the world. Lyu specified that China, South Korea and Japan have different investment preferences which can be easily be spotted in their trading patterns.

Lyu further mentioned, “In general, the Japanese traders are more prone to invest into major tokens like XRP and Cardano (ADA), because they tend to show a relatively risk-averse behavior.” Additionally, he stated, “South Korean investors are more in favor of local projects like Enjin (ENJ) and Luna Coin (LUNA). Chinese traders are following the latest trends closely and Filecoin (FIL) is quite popular in the Chinese market lately.”

The investors from Japan, China and South Korea mostly prefer the top 10 coins, except for Luna and Enjin. These two coins are not much popular in the market yet they are being traded in the Asian market. Also, Luna Coin is not available on Coinbase.

The CEO of BTSE, Jonathan Leong, recently studied the Asian crypto market. According to his study, in today’s time, Asian traders have become more experimental. Leong mentioned that most of the Japanese traders prefer XRP for the investment, Chinese prefer exchange coin and DeFi coins and the Koreans are risk-takers.

Retail trading in China is restricted, therefore, most retail investors use multiple exchanges through VPN to do so.

Use Cryptocurrency As An Alternative Asset: China

In the year 2017, China banned Bitcoin trading, but as it’s a decentralized asset, therefore, it was hard for the country to ban cryptocurrency effectively. Currently, China has banned Bitcoin mining too, in its inner Mongolia region, which affected the crypto market. In the future, if China changes its policy regarding Bitcoin mining then it would affect Bitcoin’s price in the global market.

As per the report, China has always considered Bitcoin a threat to its national currency, the digital yuan.

Recently, the People’s Bank of China appeared to have taken a softer stance towards Bitcoin. The central bank of China stated that cryptocurrencies should be regulated as an alternative asset, which could be used while gambling on horse racing.

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Bitcoin (BTC) $ 23,327.25
Ethereum (ETH) $ 1,664.28
Tether (USDT) $ 1.00
BNB (BNB) $ 330.72
USD Coin (USDC) $ 1.00
XRP (XRP) $ 0.41008
Binance USD (BUSD) $ 1.00
Cardano (ADA) $ 0.397195
Dogecoin (DOGE) $ 0.094187
Polygon (MATIC) $ 1.25