A report published by the blockchain data analytics firm Chainalysis notifies that East Asia is the largest crypto market in the world. It further explained that after analyzing the crypto transaction of the past 12 months, East Asian countries are responsible for around 31 percent of all transactions.
The countries responsible for this figure are China, Hong Kong, Macau, Japan, Mongolia, South Korea, and Taiwan.
Chainalysis has been preparing a 2020 Geography of Cryptocurrency report, which would be published in the near future. A section of the report talks about East Asia, it explains that compared to other regions around the world, East Asian countries have sent more cryptos to foreign addresses.
The blockchain analytical firm has revealed that so far the Western European countries have sent more than $38 billion worth of cryptocurrencies to foreign addresses, while the East Asian countries have transacted over $50 billion worth of cryptocurrencies to the foreign addresses.
Further, it has been specified that although the Chinese Government has allowed processing the transaction up to $50,000 to other countries each year, still most outflows of cryptocurrency originated from China.
As per the report, some of the Chinese citizens are using real estate and shell companies approach to deceive the restriction imposed by the government, however, now the authorities are curtailing them also.
The firm specified, “Over the last twelve months, with China’s economy suffering due to trade wars and devaluation of the yuan at different points, we’ve seen over $50 billion worth of cryptocurrency move from China-based addresses to overseas addresses.”
It further indicated that $50 billion could be considered as a maximum amount for capital flight through cryptocurrency which has been transferred to foreign accounts from the East Asian nations.
Additionally, Chainalysis has mentioned that the trading volume of cryptocurrency in East Asia is driven by strong market professionals and an extremely active retail market.