September 24, 2024
By Our Correspondent
The United Arab Emirates leads the region with a crypto ownership index of 25.3%, followed closely by Singapore at 24.4%. Other notable countries include Thailand at 17.6%, Vietnam at 17.4%, and Saudi Arabia at 15%. Both Malaysia and Hong Kong report a crypto ownership rate of 14.3%, while Indonesia stands at 13.9% and South Korea at 13.6%.
In terms of regional performance, Eastern Asia dominates in the value of cryptocurrency received, contributing nearly 9% of the global total from July 2023 to June 2024. During this timeframe, the region generated over $400 billion in on-chain value. Centralized exchanges are pivotal to East Asia’s cryptocurrency landscape, representing approximately 65% of the total crypto transaction value received in the region.
The significant volume of transactions between institutions and investors is a primary driver of the popularity of these exchanges, positioning East Asia as the foremost region for large-scale professional transfers. Hong Kong and South Korea are key contributors to the increase in cryptocurrency activity across Asia. According to Chainanalysis, Hong Kong has experienced the most substantial growth in cryptocurrency engagement within East Asia.
Despite the stringent regulations on cryptocurrencies in Mainland China, Hong Kong has maintained a favorable stance towards crypto. This year, it improved its position in the Global Cryptocurrency Adoption Index, moving from 47th in 2023 to 30th. Moreover, Hong Kong recorded the highest increase in crypto transaction value in East Asia, with an approximate 86% rise year-over-year.
Analysts attribute this growth to the government’s initiatives aimed at providing regulatory clarity within the cryptocurrency sector. Since 2022, the Hong Kong government has been supportive of digital assets, introducing the first licensing requirements for cryptocurrency exchanges in June 2023. Additionally, the city has launched exchange-traded funds that invest directly in cryptocurrency tokens and is currently developing regulations for stablecoins.
Conversely, South Korea experienced the highest cryptocurrency transaction value in East Asia. From July 2023 to June 2024, the nation amassed more than $130 billion in crypto transactions. The increasing skepticism and lack of confidence in conventional currency systems have fostered the adoption of cryptocurrency, leading to this substantial value. Additionally, numerous investors are engaging in cryptocurrency purchases, inspired by the practices of major corporations such as Samsung, which have integrated blockchain technology into their operations.
