As China Turns its Back On Crypto, How is the Rest of Asia Faring?

2022 promises to be a seismic year for cryptocurrencies. The price of leading currencies such as bitcoin and Ethereum is in a state of unpredictable flux, while investors are continuing to pile in at near-record levels. Meanwhile, institutional investors are making big bets on crypto, with the likes of Blackrock and Morgan Stanley significantly scaling up their holdings in 2021.

Perhaps the most consequential developments in the crypto world will take place in the realm of regulatory developments. After all, China's crackdown and effective ban on cryptocurrencies continue to be one of the most significant developments in this trillion-dollar market to date, not least because the country had previously boasted the largest per-capita uptake of bitcoin in the world.

However, while China seems to have turned its back on crypto, for the time being, other powerhouse economies in Asia are taking a different approach. Let's take a closer look at the crypto situation in Asia in 2022.

Three Asian countries comprise the top 3 crypto adopters worldwide

In order to get a picture of where the rest of the region stands, it is important to look at rates of crypto adoption, or the numbers of people in-country that actually buy and sell crypto. On this measure at least, it seems that crypto is absolutely thriving in much of Asia.

This is perhaps best demonstrated by the simple fact that the populations of three Asian countries - Vietnam, India, and Pakistan - have the highest per-capita crypto holdings on Earth, at least according to the 2021 Global Cryptocurrency Adoption Index.

The index looks at numerous factors, such as peer-to-peer exchange volumes and total value held per person. On all of these measures, these three countries come out on top by a wide margin, surpassing countries such as the US and UK by a significant amount. Rounding off the top 20 on this ranking are a number of additional Asian powerhouses, with Thailand and The Philippines both making the cut.

China still manages to retain a foothold but has fallen to 13th place worldwide, and will likely fall off the ranking for 2022 if the current regulatory hostility persists. What is clear, however, is that Asia continues to dominate in the cryptocurrency market.

Asia-based crypto users are finding novel ways to use their holdings

There are many, many reasons why certain Asian countries tend to adopt cryptocurrencies at higher rates than other countries. For one, many of these countries have substantial mining operations in place and very high levels of smartphone penetration, allowing for greater access to e-wallets and secure exchanges.

Meanwhile, large proportions of "unbanked" people in the population tend to heighten the appeal of crypto. Whatever the reason, it is also clear that people in many Asian countries are increasingly mainstreaming crypto in novel and surprising ways.

For example, Ho Chi Minh City in Vietnam is home to a rapidly growing number of cafes and restaurants that accept bitcoin as payment. Meanwhile, fans of online poker and slots in Thailand can even use bitcoin and other currencies to play their favorite real money games. This can be seen on review sites for online gambling in Thailand as they highlight how there are numerous sites that provide the option for Thai customers alongside generous bonuses to make themselves as accessible and attractive as possible for new and existing customers.

Meanwhile, Indian crypto holders can use a platform like Unocoin to buy from major brands such as Pizza Hut and Baskin Robbins, using crypto as the sole method of payment. If these trends continue, Asia could prove to be the place where crypto is first "mainstreamed" in the truest sense of the word.

Taking advantage of the gap left by China

Buying, selling, and spending crypto is only a small part of the equation. Keen to fill the vacuum left by China, the financial titan Singapore is stepping in and is firmly on track to be Asia's premier hub for crypto services.

A staggering number of leading exchanges now call Singapore home, including BloomX, Time New Bank, The Token Fund, Ten X, and CyberHash. Singapore is keen to use its considerable financial clout to become the regional epicenter of all things crypto and has been rolling out a favorable regulatory climate to match.

China may be out of the game, but it seems that its neighbors have been more than keen to pick up the slack. If current trends continue, Asia may well be the undisputed crypto center of the world in a couple of years.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes