Crypto In China Is Thriving Despite China’s Negative Stance Towards It

As per a survey by Kyros Ventures, a higher degree of risk appetite is evident from the fact that 33.3% of Chinese investors own a substantial amount of stablecoins, which places them second only to Vietnam's 58.6%.

Compared to their peers in Vietnam, South Korea, Taiwan, and Thailand, cryptocurrency enthusiasts in China are more willing to make significant investments in cryptocurrencies.

The data comes from a December 2023 report by Vietnamese venture capital firm Kyros Ventures, with the participation of 10 media outlets from China, Thailand, Korea, Taiwan and Vietnam. Over 70% of respondents to the 5,268-person study stated that cryptocurrencies made up more than half of their portfolio of assets.

Source: Kyros Ventures

However, Vietnam ranks first with 58.6% of its investors holding stablecoins, while 33.3% of Chinese investors hold a sizable amount of these coins. With the exception of China and Vietnam, the majority of investors in other nations have decreased their stablecoin holdings, suggesting that they are more cautious when it comes to making investments in digital assets.

Officially, China is among the most difficult legal environments in the world for cryptocurrencies. Beijing outlawed cryptocurrency trading in 2021, and many involved in the industry have been arrested, fined, and imprisoned by the government.

According to the survey, most Chinese investors opt to trade on centralized cryptocurrency exchanges (CEXs) in spite of the ban imposed by government authorities. At just 22%, Thailand has the lowest percentage of people who own stablecoins. China, meanwhile, plans to add cryptocurrency-related transactions under its Anti-Money Laundering rules.

As to the analysis, a majority of investors in the five nations picked self-research, crypto news, community groups, and key opinion leaders (KOLs) as their primary information outlets in 2023. Over 70% of investors from China and Thailand favor news media.

By the end of 2023, there had been notable progress toward an increasing pace in the regulatory framework for the cryptocurrency business in Asia. Particularly, Hong Kong has led the charge in attempts to position itself as a center for Web3 and cryptocurrency innovation. In 2023, Hong Kong licensed its first bitcoin exchanges.

In order to safeguard Bitcoin users, improve transaction transparency, and encourage market discipline, South Korea established new laws last year. The National Pension Service of South Korea has demonstrated its optimism for the bitcoin market by purchasing $19.9 million worth of Coinbase shares.

The Financial Supervisory Commission, Taiwan's top financial regulator, examined legalizing cryptocurrency exchange-traded funds in the nation, but only after examining the product's growth in other global markets.