Cryptocurrency thrives in China against odds, report says


Crypto enthusiasts in China are more willing to invest heavily in cryptocurrency than their counterparts in Vietnam, South Korea, Taiwan and Thailand.

This is according to a December 2023 report by Vietnamese venture capital firm Kyros Ventures, with the assistance of 10 media agencies from China, Thailand, Korea, Taiwan and Vietnam. In the 5,268-participant survey, more than 70% of participants said cryptocurrencies accounted for more than half of their asset portfolio.

However, 33.3% of Chinese investors hold a large amount of stablecoins, placing them in second place to Vietnam, with 58.6% of its investors holding stablecoins. Except for Vietnam and China, most investors in other countries have reduced their holdings in stablecoins, indicating that they are more risk-averse with investments in crypto assets.

Chinese users are more willing to bet big on cryptocurrency compared to their Asian counterparts. Source: Kyros Ventures

China is officially one of the world’s most challenging jurisdictions for cryptocurrencies. Beijing banned crypto trading in 2021, and authorities have detained, fined and jailed people working in the sector.

Despite the government agencies’ ban, the majority of investors in China choose to trade on centralized crypto exchanges (CEXs), according to the report. Thailand, in particular, has the lowest rate of stablecoin holders, at only 22%. However, China is set to amend its Anti-Money Laundering regulations to include cryptocurrency-related transactions.

According to the report, throughout 2023, self-research, crypto news, an community groups and key opinion leaders (KOLs) were the three main information channels preferred by many investors in the five countries. News media are preferred by more than 70% of Thai and Chinese investors.

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By the end of 2023, the regulatory landscape for the cryptocurrency industry in Asia had seen significant developments with growing momentum. Hong Kong, in particular, has been at the forefront of efforts to establish itself as a hub for crypto and Web3 innovation. Hong Kong issued its first cryptocurrency exchange licenses in 2023.

South Korea passed new legislation last year to protect cryptocurrency users, increase transaction transparency, and promote market discipline. South Korea’s National Pension Service has shown a positive outlook on the cryptocurrency industry by acquiring Coinbase shares valued at $19.9 million.

Meanwhile, Taiwan’s principal financial regulator, the Financial Supervisory Commission, considered allowing crypto exchange-traded funds in the country but only after analyzing the product’s development in other markets worldwide.

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