While the Chinese government might be cracking down on Bitcoin, the rest of Asia has responded to this interference, spotting a major opportunity to lead with the region’s next generation of banking instruments. Chinese rules may change to fit current leadership whims, but they cannot ignore the large quantities of local currency that have been converted into Bitcoin and other cryptocurrencies.
All eyes on Asia for Bitcoin evolution
Even as China tries to legislate Bitcoin and the like to its best advantage, the country’s tech companies are rapidly developing solutions and business models to operate using whatever the country finally decides is the legal way forward. Currently, that focuses on the Chinese obsession with gambling, with many unofficial casinos setting up shops that deal only in cryptocurrencies, but China’s preference for mobile money will be a huge driver in future.
China is also home to around one-third of all Bitcoin mining processing power, meaning that the owners can corner the market when it comes to the rollout of new currencies, and will have a major influence in the direction of upcoming rules and currency evolution.
The reason for all the excitement is that cryptocurrency is considered a commodity, not a currency in China, so it does not threaten the national interest. But expect China to keep a tight grip on activities as the rest of the world looks to digital currencies, and the risk of fraud of illicit dealing grows.
For those outside China, it is important to keep a focus on Asian trends and companies making waves in the Bitcoin markets, as they could have a major influence on values and the future direction.
For traders operating within more traditional banking structures, then Japan and South Korea are among the countries with the most advanced trading setups, so they will lead when it comes to how the big banks and national regulators come to deal with any bitcoin and blockchain evolution or issues.
While trading continues to be rampant, expect plenty of bumps in the road as these Asian giants plot out their local futures for all things cryptocurrency.