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China’s cryptocurrency market still among world’s strongest despite Beijing’s crackdown on trading, mining of digital assets
- Mainland China recorded more than US$220 billion in total transactions between June 2021 and July 2022 to remain East Asia’s top cryptocurrency market
- Chinese special administrative regions Hong Kong and Macau ranked No 4 and 5, respectively, behind South Korea and Japan, a Chainalysis report said
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Coco Fengin Beijing
Mainland China remains East Asia’s largest cryptocurrency market in terms of transaction turnover and ranked fourth worldwide, according to a new report, despite Beijing’s crackdown on the trading and mining of these digital assets.
The country recorded more than US$220 billion in total transactions between June 2021 and July 2022, surpassing those of South Korea and Japan in the same period, according to the latest report from American blockchain research firm Chainalysis.
“Chinese traders have long used VPNs [virtual private networks] to circumvent the Great Firewall,” said Zennon Kapron, founder of fintech consultancy Kapronasia. “Some bitcoin mining certainly has continued, although on a smaller scale than before.”
Although China started phasing out cryptocurrency trading in 2013 and has banned mining for digital tokens since May 2021, these actions prompted many to skirt regulations by moving their activities underground.
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Is cryptocurrency too risky for China?
Is cryptocurrency too risky for China?
Chinese special administrative regions Hong Kong and Macau ranked as East Asia’s fifth- and seventh-largest markets in terms of cryptocurrency transactions, according to the Chainalysis report.
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