Despite policies prohibiting trading in cryptocurrencies, China has the highest participation in cryptocurrency investments.
New research from cryptocurrency derivatives exchange Bitget spans 20 countries and finds that China is the most active in its interactions with cryptocurrencies. The study was conducted from May to August 2023 and included more than 1,500 participants from countries including Europe, China, Japan, South Korea and Türkiye. 18% of investors in China have allocated between US$50,000 and US$100,000, and another 19% have invested US$100,000 to US$500,000 in crypto assets.
China has effectively banned cryptocurrency trading and pledged to phase out digital asset mining and label services from offshore exchanges as illegal financial activity. Nonetheless, some traders have found ways to continue trading through over-the-counter platforms and offshore exchanges.
But the ban on cryptocurrency trading has had a significant impact. A recent report from Chainalysis noted a significant decline in crypto activity in East Asia, with a comparison of data between 2021 and 2022 showing a decrease in transaction volume in both Hong Kong and China. The report highlighted the significant decline in crypto trading volumes in China. From July 2022 to June 2023, China’s total crypto trading volume was $86.4 billion, significantly lower than the nearly $225 billion in volume during the same period the previous year.
Contrast with investment habits in the countries surveyed
Unlike China, users in Europe, Türkiye and South Korea performed relatively low in terms of investment amounts. Bitget’s research found that 51% of European users, 49% of Turkish users and 46% of Korean users allocate their investments in the range of $1,000 to $10,000.
Research also found that gender plays a role in financial goals. In South Korea, 49% of female users and in Japan, 41% of female users invest in cryptocurrencies to improve their financial situation, compared to 45% and 30% of men respectively. Additionally, approximately 27% of female investors in Türkiye and the United States were found to use cryptocurrencies to finance their children’s education.
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