In decentralized finance (DeFi), Asia, especially China and its neighboring countries, is poised to become the catalyst for the next major bull market for cryptocurrencies, according to DeFi analyst and researcher Ignas.
In recent social media mail On X (formerly Twitter), the researcher highlighted the various factors that contribute to these forecasts, and highlighted emerging trends across the Asian continent.
Asian crypto scene
The researcher points out that South Korea, known for its active retail investor base, has seen a boom in cryptocurrency trading Alternative currencies It controls about 80% of trading volume.
It is worth noting that the country's cryptocurrency culture varies greatly, with a preference for altcoins and the rise of cryptocurrency-based e-sports and play-for-profit games.
Moving to the Philippines, Web3 games like Axie Infinity are still very popular, with players forming guilds to win them Non-fungible tokens (I am a boy). While cryptocurrency transactions are not considered legal tender, the country's central bank is piloting the digital currency. DeFi Ignas positions the Philippines as a hub for blockchain gaming adoption.
In Hong Kong, retail traders rely heavily on high leverage and are influenced by social media trends. The new regulations aim to control cryptocurrency exchanges and protect consumers.
In addition, a list of cryptocurrencies Exchange-traded funds ETFs for Bitcoin (BTC) and Ethereum (ETH) aim to make Hong Kong a regulated hub for digital assets.
Next, Australia shows a strong preference for Ethereum over Bitcoin among investors. The researcher notes that the average Australian cryptocurrency portfolio contains approximately 59.4% ETH, driven by its use in altcoins and anticipation of ETFs.
As Bitcoin mentioned, Australia entered the cryptocurrency investment scene on Tuesday with the launch of its first bitcoin spot trading fund. Furthermore, the country's regulatory environment supports cryptocurrency trading and encourages innovation in the industry.
Bitcoin ETF craze in Asia
DeFi Ignas also notes that the Japanese government is actively promoting it Web Technologies 3 and easing crypto regulations to stimulate economic growth. While some restrictions on mutual funds holding cryptocurrencies still exist, financial institutions are gradually adopting activities related to digital assets.
Despite its restrictive tax regime, India has seen growing interest in US Bitcoin ETFs through the “Liberal Remittance Scheme.” Moreover, the government is actively promoting the development of central bank digital currency (CBDC) and cracking down on it Foreign exchanges.
Singapore is primarily an institutional market that imposes restrictions on retail virtual asset trading. The country is leveraging blockchain technology for institutional applications such as tokenization and cross-border money transfers. Project Guardian, an initiative of the central bank, plays a crucial role in shaping Singapore's landscape.
In Taiwan, Bitcoin ETFs have become a hot topic, although local brokerages are currently facing restrictions in accepting orders. Regulatory discussions are underway to reopen services for Bitcoin ETFs, indicating Taiwan's growing interest in embracing digital investment opportunities.
Finally, the Thai market saw the impact of falling prices in 2022 and the collapse of the local stock market. However, DeFi Ignas points out that the new government is actively promoting the country as a digital asset Trading center Through exemption from some taxes.
Asia has increasingly emerged as a hotspot for Web3 adoption and innovation, with notable trends and developments across countries. Monitoring these developments provides valuable insights and potential opportunities that may soon impact the Western digital asset landscape.
Featured image of DALL-E, chart from TradingView.com