In 2021, China took a clearer stance against cryptocurrencies and largely drove miners out of the country. It is unforgettable how the mining power dwindled during those days and quickly recovered with migration to alternative regions like the USA and Kazakhstan. Despite China’s opposition to cryptocurrencies, it allowed Hong Kong to expand in this area.
China and Cryptocurrencies
According to a study by Hong Kong-based TechFlow, the Binance exchange is the top choice for Chinese-speaking cryptocurrency investors. This means that despite the Chinese government’s ban, Chinese investors are not isolated from the industry. The latest study clearly shows this. Moreover, not only Binance but also alternative centralized exchanges are widely used.
96.72% of the survey participants said they use the Binance exchange, and 63.15% of them keep most of their assets there. The survey results show that most participants also heavily use alternative exchanges simultaneously.
For example, 83.53% have an OKX account, and 25% keep their assets there. The rate of having accounts on several other centralized exchanges is over 35%.
“Most participants (69.61%) said their preferences for a particular exchange would not be affected by regulatory factors, indicating that investors are becoming less sensitive to the regulatory behaviors of various governments.”
Chinese People Buy and Sell Cryptocurrencies
The rate of those who trade full-time is over 25%. Nearly 50% of the Chinese survey participants keep more than half of their savings in cryptocurrencies. The assets they earn the most from and show the most interest in are as follows:
- BTC
- ETH
- SOL
- BNB
- PEPE
So, how Chinese are they? The following detail in the report answers this.
“40.04% of the interviewed investors said they have metaphysical behaviors such as praying for the blessing of the God of Wealth.”
Reuters, in a report based on Chainalysis data, wrote that between 2022 and June 2023, $86.4 billion worth of raw transactions took place in the Chinese cryptocurrency market. This means China is still a significant area for cryptocurrencies and does not seem to have fallen victim to the carbon emission story.
