Chinese Crypto Investors Lead in Heavy Investments Despite Regulatory Challenges, Study Reveals
Summary:
The study conducted by Vietnamese firm, Kyros Ventures reveals that Chinese crypto enthusiasts exhibit a higher propensity for heavy investment in cryptocurrencies compared to peers in Vietnam, South Korea, Taiwan, and Thailand. Despite a significant number of Chinese and Vietnamese investors holding stablecoins, investors in other Asian nations display a greater inclination towards riskier crypto assets. The study also highlights that in spite of restrictive policies, the majority of Chinese investors trade cryptocurrencies on centralized exchanges. Furthermore, the evolving regulatory landscape across Asia indicates an increasingly embracing attitude towards cryptocurrencies, with countries like Hong Kong and South Korea leading significant developments.
The enthusiasm for hefty cryptocurrency investments is notably more pronounced amongst Chinese enthusiasts compared to their peers in Vietnam, South Korea, Taiwan, and Thailand. This was the conclusion of a study conducted in December 2023 by Kyros Ventures, a Vietnamese venture capital company, in collaboration with ten media outlets from the aforementioned countries. In the survey involving over 5,000 participants, upwards of 70% indicated that more than half of their assets were invested in cryptocurrencies.
That being said, 33.3% of investors from China possess a significant amount of stablecoins, ranking after Vietnam where 58.6% investors have stakes in stablecoins. Beyond Vietnam and China, investors in other nations have lessened their stake in stablecoins, signalling a more bullish stance towards riskier crypto assets. Thus, Chinese users are more likely to gamble with sizeable amounts in cryptocurrencies than their Asian neighbors.
Despite its restrictive stance towards cryptocurrencies, Beijing's 2021 ban on crypto trading did not deter numerous Chinese investors from trading on centralized crypto exchanges (CEX), the Kyros report confirms. Notably, Thailand has the least stablecoin investors at just 22%. In response to this emerging trend, the Chinese government is poised to update its Anti-Money Laundering regulations to encapsulate crypto-related transactions.
Throughout the course of 2023, self-research, crypto news, and key opinion leader-guided community groups emerged as preferred sources of information for investors in these countries, according to the study. More than 70% of Thai and Chinese investors rely on news media.
As 2023 came to a close, sweeping changes swept across the regulatory landscape governing the crypto sphere in Asia. Hong Kong in particular is leading the charge in positioning itself as a hub for crypto and Web3 innovation. In fact, Hong Kong granted its inaugural crypto exchange license in 2023.
Last year, South Korea instituted fresh legislation aimed at bolstering user protection, enhancing transaction transparency, and instilling market discipline in the crypto industry. Furthermore, the National Pension Service of South Korea signaled optimism for the crypto domain by purchasing Coinbase shares valued at nearly $20 million. On the other hand, Taiwan's chief financial watchdog, the Financial Supervisory Commission, is deliberating over allowing crypto exchange-traded funds (ETFs), pending analysis of their performance in global markets.
Published At
2/1/2024 5:14:17 PM
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