South Korea is leading the way in cryptocurrency within Eastern Asia, with its value in the market sitting at approximately $130 billion according to a new report.
The American blockchain analysis firm Chainalysis published a report on Tuesday (September 17) exploring the adoption of the technology across the world
Th Eastern Asia region is the sixth largest cryptocurrency economy in the world this year, accounting for 8.9% of global value received between July 2023 and June 2024. The team then looked into the data and found that South Korea remains the largest in the area.
Its share of transaction value in Eastern Asia has been steadily increasing since the first quarter of 2023, with a leader at a South Korean crypto exchange giving some reasons for why adoption is rising.
“Mistrust in traditional financial systems has led investors to seek out cryptocurrencies as alternative assets.
“The public’s perception of crypto as a viable investment option has been further solidified by the adoption of blockchain by major corporations like Samsung and large enterprises in the region that are working to enhance operational transparency and efficiency,” said the source.
The South Korean multinational corporation Samsung Electronics debuted a digital wallet in June of 2022 which lets its users of the Galaxy phone hold cryptocurrencies. The tool is integrated with the blockchain wallet that lets people monitor their digital currencies.
Read the latest preview chapter of our 2024 Geography of Cryptocurrency Report, which explores crypto adoption trends in Eastern Asia, the 6th largest crypto economy we study. Featuring insights from @BenCharoenwong. https://t.co/76qC661keA pic.twitter.com/XkBOSnWFXg
— Chainalysis (@chainalysis) September 18, 2024
Hong Kong follows South Korea in Eastern Asian adoption of cryptocurrency
Hong Kong then follows in second place, having experienced the largest year-over-year growth in Eastern Asia at 85.6% and ranks 30th in the world in Chainalysis’s Global Crypto Adoption Index.
This is believed to be due to the supportive regulatory framework that was implemented for virtual asset trading platforms in June of 2023. “This regime provides a regulated path for retail investors to access crypto, but also lays out stringent prudential, consumer protection, and AML/CFT standards,” writes the firm in the report.
Since then, changes have been made. On April 30, 2024, Hong Kong’s financial regulator, the Securities and Futures Commission, approved three Bitcoin and three Ether-based spot Bitcoin ETFs to start publicly trading.
In the report, chief executive officer of digital asset trading platform OSL, Kevin Cui, is quoted as saying: “As market conditions improve, we are seeing indications of a growing institutional interest that could lead to increased capital inflows in the near future.
“These ETFs have not only provided a regulated pathway for investment in digital assets, but have also spurred interest in direct holdings in BTC and ETH.
“This shift is significant, as it marks a transition from traditional financial instruments toward more direct engagement with digital assets, reflecting a broader acceptance and understanding of their potential within the institutional investment community.”
Featured Image: Via Midjourney
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