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Can you guess what the top ascent for crypto in Asia and Oceania is? Here is the answer

Source: AdobeStock / Rokas

Among countries in Central and South Asia and Oceania (CSOA), non-fungible tokens (NFTs) are the biggest entrant into the cryptocurrency market, according to a new report.

Blockchain intelligence firm Chainalysis said in a new report that the Asian region received $932 billion worth of crypto from July 2021 to June 2022, mostly thanks to NFTs.

The study found that web traffic from IP addresses tied to countries in the region to cryptocurrency services is mostly related to NFT. In Q2 2022 alone, 58% of CSOA IP addresses accessing crypto services visited NFT-related websites. Another 21% came from play-to-earn blockchain game sites — which are “closely related” to NFTs, as most in-game items are NFTs.

According to Chainalysis, the result is not entirely surprising as the region is an innovative hub for blockchain-based entertainment. Several game-centric blockchain developers, including Polygon, Immutable X, Axie Infinity, and STEPN, operate from countries in the region.

Similarly, countries in the region, including Vietnam and the Philippines, are among the top global blockchain game providers at the country level. The third most common driver of basic blockchain adoption in the region has been remittances.

On a global scale, the CSOA region emerged as the third largest crypto market, while seven countries in the region – Vietnam, the Philippines, India, Pakistan, Thailand, Nepal and Indonesia – made up the top 20 crypto market index.

Regulations are still a handicap to wider crypto adoption in the region

Despite the success of the crypto market in the region, the industry still faces tough regulations that could have hampered its progress. The report highlighted India and Pakistan as examples of countries where regulations have stifled crypto market growth in the region.

Earlier this year, Pakistan’s central bank and government proposed banning cryptocurrencies in the country. Since then, up to three committees have been set up to deliberate on the recommendation without having made a decision yet.

In India, the government has long maintained a crypto-hostile stance after previously proposing to ban the asset class. The government introduced a 30% tax regime on crypto profits in April, which has caused crypto exchange trading volumes to plummet amid outcry that there are no regulations to guide the industry.

According to a Bloomberg report, these market protests have been ignored by the Indian government, which is now using police to threaten crypto investors with arrest.

The less-than-favorable regulatory climate in several other countries in the region has hurt the region’s ranking, causing it to fall behind in Chainalysis’ global crypto adoption index as of 2021.

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