How Popular are Cryptocurrencies in Asia?

Cryptocurrency is a digital currency that is available worldwide. Cryptocurrency is not regulated by any financial bodies in most regions of the world and there is no third party involved when trading, such as a bank. While the unregulated nature of crypto has put some people off investing, there are some countries around the world where crypto has been widely accepted, including Asia. Whether it be trading, making online purchases, using a football betting site, entering the metaverse, or playing online games, there are many uses for cryptocurrencies in Asia.

Popularity of Cryptocurrencies in Asia

There is no doubt, Asia is one of the biggest countries in terms of crypto markets. Asia is often at the forefront of technology and although there are still some divisions across the continent regarding the regulation of cryptocurrencies, Asia still enjoys a massive demand for cryptocurrency. If we look back at the figures for 2021, reports have shown Asian markets accounted for over 40% of cryptocurrency activity worldwide. That is an astonishing figure and between June 2020 and June 2021, the total cryptocurrency transaction value for Asia was close to $300 billion. There have been some major increases in the number of people owning cryptocurrency in some Asian countries and we can investigate this in more detail below.

India, Pakistan, Thailand, and Vietnam

China is the biggest country in Asia but the second largest country on the continent by area is India. Between 2019 and 2021, the number of people owning cryptocurrency in India more than doubled. In 2019, 7% of the population owned crypto but in 2021, 18% of people owned crypto and the number is sure to have risen throughout 2022. The crypto industry suffered a blow in 2022 and that may see the figures fall back in the second half of the year in India and Asia as whole. However, that is not isolated to the region and the impact has been felt across the globe. Pakistan and Vietnam have seen crypto ownership increase between 2019 and 2021. Looking at Central and Southern Asia plus Oceania as a whole, the crypto market was valued at  $572 billion in 2022, which is 14% of the global transactional volume. Thailand has recently emerged as a major crypto hub in Asia and the capital city of Bangkok was ranked as high as tenth globally by the Crypto Readiness Index. It is believed Thailand has the world’s second highest rate of cryptocurrency ownership.

Crypto Regulation in Asia

The figures show just how popular cryptocurrencies have become in many Asian countries but the issue of regulation remains. For example, China has prohibited the use and trade of cryptocurrency. The People’s Bank of China banned all cryptocurrency transactions in 2021 because they felt it posed a risk to the financial system in the country and could be used in financial crime. Despite the popularity of crypto in Thailand, the Bank of Thailand and rulers of the country remain wary and rules are being tightened regarding crypto trading.

Nonetheless, the figures show cryptocurrencies are hugely popular in Asia and as they work on a decentralized blockchain, it will be difficult for countries to ban them completely.

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