In a joint research report published by Blocktempo and Coinness, it has been revealed that China still has around 30 million cryptocurrency users, which accounts for about 2.12% of the population. While this number may seem significant, it pales in comparison to other countries like Korea with 13.31%, the United States with 12%, and Taiwan with 11%.
According to the report, the ban on cryptocurrency trading by the People’s Bank of China in 2021 has dealt a significant blow to the Chinese cryptocurrency industry. Despite the decline in the number of cryptocurrency users, the industry is still thriving in terms of total investment volume.
The report also highlights Hong Kong’s growing role as an emerging hub for blockchain technology in Asia. In February, the Hong Kong Securities and Futures Commission (SFC) allowed exchanges to obtain regulatory licenses by fulfilling custody, know-your-customer, record-keeping, and risk-management requirements. This policy is set to come into effect on June 1st.
Interestingly, the report points out that despite spending campaigns during the Beijing Winter Olympics, only 13.61 billion of China’s digital yuan Central Bank Digital Currency (CBDC) was in circulation, accounting for just 0.13% of China’s money supply.
Despite headwinds from the banning of cryptocurrencies in China, Hashkey Capital, Dragonfly, and Foresight Venture are still operating in mainland China. The report suggests that Hong Kong’s regulatory environment and the continued operation of these cryptocurrency ventures in China may be factors in the country’s thriving total investment volume.
Overall, the report sheds light on the current state of the cryptocurrency industry in China and the growing importance of Hong Kong as a hub for blockchain technology in Asia. While China may still have a significant number of cryptocurrency users, the ban on trading has undoubtedly had an impact on the industry’s growth.
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