Chainalysis: Hong Kong and China’s OTC Markets Remain Active Despite Crypto Winter

Hong Kong’s progressive over-the-counter crypto marketplace drove $64 cardinal successful volume, not excessively acold beneath China’s $86.4 cardinal during the past twelvemonth contempt the territory having a overmuch smaller colonisation and the planetary chill done crypto markets.

While information shows that the worth of transactions successful some China and Hong Kong person dropped implicit the past twelvemonth due to the fact that of Beijing's continued strict prohibition connected crypto assets and a prolonged downturn successful the crypto market, Chainalysis argues that the beingness of ample OTC markets – and their comparative stableness successful the look of some determination and planetary diminution – shows a definite grade of tolerance by Beijing to crypto.

“The progressively adjacent narration betwixt China and Hong Kong leads immoderate to speculate that Hong Kong's increasing presumption arsenic a crypto hub whitethorn awesome that the Chinese authorities is reversing people connected integer assets, oregon astatine slightest becoming much unfastened to crypto initiatives,” it said successful its report.

Chainalysis said that Hong Kong dominates successful ample organization crypto transactions compared to different Asian regions. Its information shows that 46.8% of Hong Kong's yearly crypto trades were organization transactions exceeding $10 million, portion retail trades nether $10,000 accounted for conscionable 4% of the City’s volume, marginally beneath the planetary mean of 4.7%

On the different hand, South Korea leans heavy connected retail trading connected centralized exchanges, with “professional” traders betwixt $10,000 and $1 cardinal successful transaction measurement making up 40% of volume.

Japan's transaction breakdown aligns intimately with planetary trends, balancing centralized exchanges with DeFi protocols.