According to CryptoQuant, China is about to mark its grand comeback in the cryptocurrency market. Significant signals seem to indicate its return according to the data collected. These indicators include, among others, the growth of volumes in the derivatives and cash markets. China is now one of the largest cryptocurrency markets in the world. Yet it has long experienced restrictions on cryptocurrency-related activity.
The signals show the return of cryptocurrencies in China
CryptoQuant said China could make a strong comeback in the cryptocurrency market crypto. Signs point to volume growth in the derivatives and cash markets. Southern Asset Management’s Chinese subsidiary, CSOP Asset Management, has listed the first Ethereum and bitcoin ETFs on the Hong Kong stock exchange. This raised over $74 million in seed funding.
According to Tim McCourt, Global Head of FX Products at CME, ETF approval is necessary for cryptocurrency adoption in Asia. He also said that BTC and ETH experienced an exponential 20% increase in daily volumes between 2021 and 2022.
One of the largest cryptocurrency markets in the world
As of October 2022, China is ranked as one of the largest markets Southeast Asian cryptocurrencies by transaction volume. Globally, it is in position 4ᵉ. Between June 2021 and July 2022, China surpasses Japan and South Korea with $220 billion in transactions. The Chinese state alone owns 70% of global cryptographic applications.
Concerned about the harmful effects of cryptocurrency-related technology, the government has banned some businesses since 2013. The advent of crypto companies like Huobi, Bitmain or One Foundation has prompted the government to take a closer look at this sector. In 2021, China banned financial institutions from using virtual currency. Cryptos and the activities of extraction they were also banned during this period.
Do recent events mark the end of these restrictions and China’s grand comeback?
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I am passionate about cryptocurrencies, a world that I discovered just 3 years ago. My only goal is to inform you of this incredible universe through my articles.