Hong Kong leads crypto market growth in Eastern Asia at 85.6%

The growth was fueled by the country’s supportive regulatory frameworks.

Hong Kong has experienced the largest year-over-year crypto market growth in Eastern Asia at 85.6%, ranking 30th globally, according to the Global Crypto Adoption Index of Chainalysis.

The growth was fueled by the country’s supportive regulatory frameworks. 

Last year, the securities regulator implemented a new regulatory regime for virtual asset trading platforms (VATPs). It provided regulations for retail investors to access crypto, but also laid out stringent prudential, consumer protection, and AML/CFT standards. 

With the Securities and Futures Commission’s (SFC) approving three Bitcoin and three Ether-based spot Bitcoin ETFs to start trading, Chainalysis saw a significant increase in institutional Bitcoin transfers. 

As such, Stablecoins accounted for more than 40% of total value received by Hong Kong each quarter.

According to the Hong Kong Monetary Authority (HKMA)’s, it will likely grow when regulations come into effect, as regulated stablecoins can be offered to retail investors.

“As market conditions improve, we are seeing indications of a growing institutional interest that could lead to increased capital inflows in the near future. These ETFs have not only provided a regulated pathway for investment in digital assets, but have also spurred interest in direct holdings in BTC and ETH,” Kevin Cui, Chief Executive Officer of OSL, said.