Chinese Crypto Enthusiasts Defy Challenges, Embrace Risk in Thriving Market, Kyros Ventures Report Finds

Despite stringent regulations, 33.3% of Chinese investors boldly embrace stablecoins, showcasing their resilience and heightened risk appetite.

A recent report by Vietnamese venture capital firm Kyros Ventures, supported by 10 media agencies across China, Thailand, Korea, Taiwan, and Vietnam, underscores the resilience and risk-taking attitude of Chinese cryptocurrency enthusiasts.

Source: Kyros Ventures

The comprehensive survey, involving 5,268 participants, reveals that over 70% of respondents allocate more than half of their investment portfolios to cryptocurrencies. Notably, 33.3% of Chinese investors hold substantial amounts of stablecoins, securing the second position after Vietnam, where 58.6% of investors favor stablecoins. In contrast, investors in other countries, excluding Vietnam and China, exhibit a more risk-averse approach by reducing their stablecoin holdings.

Despite being one of the most challenging jurisdictions for cryptocurrencies globally, China stands out for its vibrant crypto market. The government's ban on crypto trading in 2021 and subsequent legal actions have not deterred the majority of Chinese investors, who actively trade on centralized crypto exchanges (CEXs), according to the report. Thailand records the lowest stablecoin holders at 22%. Nevertheless, China is poised to amend its Anti-Money Laundering regulations to encompass cryptocurrency-related transactions.

Throughout 2023, the preferred information channels for investors across the five countries included self-research, crypto news, community groups, and key opinion leaders (KOLs). Notably, news media remains the preferred source for over 70% of Chinese and Thai investors.

As of the end of 2023, Asia's cryptocurrency regulatory landscape has witnessed substantial developments, with Hong Kong emerging as a hub for crypto and Web3 innovation. The issuance of cryptocurrency exchange licenses in 2023 further solidifies Hong Kong's position.

South Korea enacted new legislation in the previous year, prioritizing the protection of cryptocurrency users, enhanced transaction transparency, and the promotion of market discipline. The National Pension Service of South Korea displayed confidence in the cryptocurrency industry by acquiring Coinbase shares valued at $19.9 million.

Meanwhile, Taiwan's Financial Supervisory Commission, the principal financial regulator, deliberated on allowing crypto exchange-traded funds in the country, contingent on a thorough analysis of the product's global market development.

(Photo Source / Blockonome)