Despite an on-again-off-again de facto ban imposed by Beijing, individuals in China continue to deal with cryptocurrencies.
A recent study conducted by crypto derivatives exchange Bitget across 20 countries found that China displayed the highest level of engagement with cryptocurrencies.
Conducted from May 2023 to Aug. 2023, the research engaged over 1,500 participants from countries including Europe, China, Japan, South Korea and Turkey.
The report published on Thursday revealed that 18% of investors based in China allocated funds ranging from $50,000 to $100,000, while an additional 19% invested amounts between $100,000 and $500,000 in cryptoassets.
This insight into their trading activity backs the notion that some portion of China’s population is ignoring Beijing’s ban imposed in Sept. 2021.
China effectively said no to crypto transactions, committed to eliminate digital asset mining and labeled services from offshore exchanges as illicit financial activity.
Despite all that, some traders found ways to keep trading using over-the-counter platforms and offshore exchanges.
Nonetheless, the crypto trading ban has had a significant impact.
In a recent report, Chainalysis pointed out that East Asia has seen a notable decline in crypto activity, with diminished trading volumes observed in both Hong Kong and China when comparing data from 2021 and 2022.
The report underscored a substantial reduction in crypto transaction volume in China.
From July 2022 to June 2023, China reported a total of $86.4 billion in crypto transaction volumes, far lower than the nearly $225 billion recorded during the same period in the previous year.
Contrasting investment habits across surveyed countries
In contrast to China, users in Europe, Turkey, and South Korea demonstrate relatively lower levels of engagement in terms of the amounts they invest.
Bitget’s findings indicate that 51% of European users, 49% of Turkish users, and 46% of South Korean users allocated their investments within the range of $1,000 to $10,000.
The study also found that gender plays a role in financial goals. In South Korea, 49% of female users and in Japan, 41% of female users invest in crypto to improve their financial situation, compared to 45% and 30% for males, respectively.
Additionally, around 27% of female investors in Turkey and the US were found to use crypto to fund their children’s education.
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Source: https://blockworks.co/news/crypto-investors-china-bitget-study