Hong Kong could be a ‘tailwind’ for lagging crypto activity in Asia: Chainalysis

Recent crypto advancements in Hong Kong could provide a “potential tailwind” to lift crypto activity in the East Asian region, which has mainly suffered from a China-wide ban on trading activities since 2019.

Cryptocurrency value received in East Asia amounted to just 8.8% of the world between July 2022 and June 2023,

Speaking to Cointelegraph, Matrixport’s Head of Research and Strategy Markus Thielen said Hong Kong will serve as a “testing ground” for broader cryptocurrency adoption in China.

However, Hong Kong is making a big play in one particular area which other states haven’t managed to capitalize on, says Thielen:

“Crucially, there is a genuine interest to attract the crypto asset management industry which has so far been a missing piece of the puzzle as most crypto firms tend to be labeled as service providers, instead of being the end-user of crypto.”

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