In the area of decentralized finance (DeFi), Asia, particularly China and its neighboring countries, is poised to become the catalyst for the next big crypto bull run, according to DeFi analyst and researcher “ DeFi Ignas.”
In a recent social media job on X (formerly Twitter), the researcher highlighted various factors contributing to this outlook, highlighting emerging trends on the Asian continent.
Asian crypto landscape
The researcher notes that South Korea, known for its active retail investor base, has seen an increase in cryptocurrency trading, with altcoins dominating around 80% of trading volume.
Notably, the country’s crypto culture is very different, with a preference for alternative coins and the emergence of crypto-based esports and play-to-earn.
In the Philippines, Web3 games like Axie Infinity continue to be popular, with players forming guilds to earn money. non-fungible tokens (NFT). Although crypto transactions are not considered legal tender, the country’s central bank is testing a 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. New regulations aim to control crypto exchanges and protect consumers.
In addition, the listing of crypto exchange traded funds (ETF) 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 crypto wallet contains around 59.4% ETH, due to its use in alternative coins and anticipation of ETFs.
As a Bitcoinist reported, Australia entered the crypto investment landscape on Tuesday with the launch of its first spot Bitcoin exchange-traded fund. Additionally, the country’s regulatory environment supports crypto trading and encourages innovation in the sector.
Bitcoin ETF frenzy in Asia
DeFi Ignas further notes that the Japanese government is actively promoting Web3 technologies and easing crypto regulations to boost economic growth. While some restrictions on mutual funds holding cryptocurrencies persist, financial institutions are gradually shifting their focus to digital asset businesses.
Despite its restrictive tax regime, India has seen growing interest in US Bitcoin ETFs thanks to the “liberalized remittance program”. Additionally, the government is actively promoting the development of a central bank digital currency (CBDC) and cracking down offshore stock exchanges.
Singapore is primarily an institutional market that places restrictions on the retail trading of virtual assets. The country leverages blockchain for institutional applications such as tokenization and cross-border remittances. Project Guardian, a central bank initiative, plays a vital role in shaping Singapore’s landscape.
In Taiwan, Bitcoin ETFs have become a hot topic, although local brokerages currently face restrictions in accepting orders. Regulatory discussions are underway to potentially reopen services for Bitcoin ETFs, indicating Taiwan’s growing interest in digital investment opportunities.
Finally, the Thai market suffered the impact of falling prices in 2022 and the collapse of local exchange rates. However, DeFi Ignas suggests that the new government is actively promoting the country as a digital asset. mall by waiving certain taxes.
Asia is increasingly emerging as a hotspot for Web3 adoption and innovation, with notable trends and developments in different countries. Tracking these advancements provides valuable insights and potential opportunities that could soon influence the Western digital asset landscape.
Featured image of DALL-E, chart by TradingView.com
