The country's digital currency transactions between June 2021 and July 2022 surpassed those of South Korea and Japan.
Back in 2013, the Chinese government already tried to phase out cryptocurrencies. In May 2021, China also banned people from mining cryptocurrencies.
If the Chinese government is making efforts to restrict these digital coins, how come it is still among the biggest market across the globe?
Why Is China Still Largest Crypto Market?
According to the South China Morning Post's latest report, the restrictions imposed by the Chinese government against cryptocurrencies prompted many skirt regulations (meaning rules that can be avoided without breaking them).
With that, Hong Kong and Macau, China's special administrative regions, ranked fifth and seventh, respectively, in East Asia when it comes to crypto.
On the other hand, the overall crypto transaction in China surpassed South Korea and Japan between June 2021 and July 2022.
Chainalysis said that during this period, the Chinese crypto market recorded more than $200 billion in digital coin transactions.
"Chinese traders have long used VPNs [virtual private networks] to circumvent the Great Firewall," explained Kapronasia founder Zennon Kapron.
He added that several BTC mining activities were able to continue despite Beijing's restrictions.
Other Asian Countries Want to Legalize Crypto
While China is trying to restrict cryptocurrencies, Coin Telegraph reported that other Asian countries want to legalize these digital coins.
Hong Jong is reportedly trying to become a global cryptocurrency hub.
Experts stated that the country wants to achieve this by launching some legal crypto industry-related projects.
Among its initiatives is introducing a new bill that would allow the government regulates digital coins, as explained by Elizabeth Wong.
Aside from this, the Hong Kong government also wants to allow retail investors to put their money into virtual assets directly.
If you want to learn more about Hong Kong's plan to legalize cryptocurrency, you can visit this link.
In other stories, the Ethereum Merge event was successfully launched.
Previously, Bitcoin stumbled, dropping below $22,000.
For more news updates about cryptocurrencies and other related topics, keep your tabs open here at TechTimes.
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Written by Griffin Davis
