Eastern Asia Received $400B in On-Chain Crypto – Hong Kong Sees an 85.6% Year-Over-Year Growth

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What if I were to tell you that Eastern Asia is the sixth-largest crypto economy in the world? Also that Hong Kong saw an 85.6% YoY growth as of 2024.

Per a Chainalysis report, Eastern Asia accounted for 8.9% of the global crypto value as of June 2024, with centralized exchanges (CEXs) leading the pack, with 64.7% crypto held.

Why is this the case, and in what areas is Eastern Asia (and Hong Kong) leading the crypto industry? Let’s find out.

Eastern Asia Crypto Adoption Summary – Here’s What’s What

Here’s what that report says about crypto adoption in Eastern Asia:

Given these stats, it’s no wonder Eastern Asia is the sixth-largest crypto economy in the world. Despite China’s conflicting relationship with crypto (including several crackdowns and regulatory changes), the country might be undergoing a shift for the better.

And most of that shift comes from Hong Kong, arguably a central crypto hub in the Asian world.

Let’s see how Hong Kong is single-handedly changing an entire geographical region’s perspective on crypto.

Hong Kong’s 85.6% YoY Growth Leads the Pro-Crypto Movement

Hong Kong doesn’t play around when it comes to crypto. It achieved an 85.6% YoY growth in crypto adoption since July 2023, ranking 30th globally.

Local regulators are more flexible in their regulatory frameworks, leading to faster financial innovation. It seems strictness isn’t great at promoting development, and too many rules can stifle it.

As more Chinese citizens are turning to crypto OTC platforms and peer-to-peer networks for trading, Hong Kong’s open stance on crypto is turning heads and swaying hearts.

Another important metric that shows Hong Kong’s rapid ascent to crypto domination is its digital asset revenue (estimated between 2017 and 2028).

Statista gives us a direct look at it – a whopping $183.2M earned in 2024 from crypto transactions. By 2028, that value is expected to shoot up to $254.6M, a 38.97% increase.

Interestingly, over 40% of Hong Kong’s total value received per quarter is in stablecoins, showing yet again the market significance of stablecoins like $USDT and $USDC.

Summary – Hong Kong to Reopen China’s Appetite for Crypto?

One thing is clear – if not mainland China, then Hong Kong is headed for higher crypto adoption, and the trend seems positive.

The local crypto regulator’s new framework for crypto trading platforms (introduced in June 2023) attracted significant institutional adoption through its robust anti-money laundering standards. Project Ensemble is also transforming the way we view crypto adoption.

Everything we see points to Eastern Asia’s redoubled efforts in crypto adoption, which will likely improve the global crypto industry.

References

• Eastern Asia: Institutions Drive Adoption in South Korea and Hong Kong (Chainalysis)
• Cryptocurrencies – Hong Kong (Statista)