Asia: Crucial player in the game of crypto exchanges

Asia: Crucial player in the game of crypto exchanges

China, South Korea, Japan, Hong Kong, and Singapore compete for the leading position on the crypto trading map

Asia has been proclaimed as a crucial player in the realm of cryptocurrency with a substantial percentage of nations driving the path to adoption, improvement and governing the industry.

China is currently in charge of 50% of the world’s mining hash.

Just a while ago, Korea was not in any case viewed as a conceivable huge crypto market. Nowadays, the nation is a home to five major Ethereum exchanges and has a bulk of the world’s most dynamic crypto markets.

Japan has made one of the boldest administrative actions by dubbing Bitcoin a legitimate payment method. Currently, Japan has more than 4k business ventures accepting Bitcoin as a payment method.

Given the pervasiveness of the cryptographic money industry in Asia, it is to some degree shocking that Asian governments have been calling for harder measures on the digital currency markets.

The crypto regulators in Asia

In response to these risks, some countries have set out to regulate the cryptocurrency industry and promote an environment that is friendly to innovation, but able to mitigate risks.

Hong Kong and Singapore have been known as crypto hubs and are inviting crypto companies to join in on the ride. Singapore has indicated its intention to prevent “de-risking” of the cryptocurrency from the banking sector, but its method is not “laissez-faire”: in Q1 of 2019 it established a new Payment Services Bill that is put into motion to bestow a regulatory framework to crypto exchanges, but also aims to incorporate decentralized exchanges into the regulatory equation.
Hong Kong, on the other hand, has no capital gain tax for crypto investments and the government pays a lot of attention towards education as means of protecting its citizens against potential frauds.

Japan began regulating cryptocurrency exchanges in April 2017. It has since developed an intensive licensing regime and regulatory apparatus focused on supervising cryptocurrency exchanges. It even revoked the licenses of two exchanges in response to fears about lapses in compliance practices. The Japanese government has also endorsed the formation of a local cryptocurrency self-regulatory organization.

South Korea, has at times debated whether to take a harsh stance towards cryptocurrencies. However, more recently, South Korea has clarified its intention to bring cryptocurrencies and ICOs within the scope of its regulatory frameworks without stifling the industry.

Further afield, the Philippines, Thailand, Malaysia, and Australia have developed cryptocurrency regulatory frameworks broadly aligned with international standards.

Asian Digital Assets Exchanges

It has been reported that in February 2019 only, more than 80% of crypto trading volume has been manipulated and allegedly inflated. However, Asian crypto exchanges have pledged to provide a fair and trusted ecosystem and hold an impartial position towards trading activities on the exchange. Don’t get us wrong though — exchanges will not ask its customers to trust them — quite the contrary — they will show them how to enjoy a trustless and seamless trading environment.

The fairness of a market depends on the aptitude of trading venues to lodge efficient markets and fair price discovery through the facility of an adequate degree of liquidity to trading partakers. Therefore, Asian exchanges are getting equipped with rich features to facilitate greater liquidity and provide both institutional and retail users with a great trading experience.

In a liquid market, prices are much fairer for market participants due to a large number of buyers and sellers. Due to high percentage of exchanges with high liquidity being dispersed all over Asia, the ecosystems usually offer world-class ultra-low latency and high throughput. This is a major advantage in attracting market makers, and the abundance of market makers ensures deep liquidity which is the staple of a fair market and ensures true price discovery for users.

Major breakthroughs have been achieved in the security sectors as well. Proprietary “vaults” have been designed to minimize human error, relying on customized processes and automation. Private keys are generated offline, split up using advanced cryptography, and then placed in various geographical locations. KYC is normally a mandatory process before the full account privileges have been given.

Similarly, Asian cryptocurrency trading market also opened its doors to Artificial Intelligence and Machine Learning. A method of trading in securities using intricate mathematical models and formulas to initiate high-speed, automated financial transactions has found its spot amongst the Asian trading community. It is estimated that more than 50% of Asian equities trades are placed by computer algorithms. High-frequency trading, including scalping, market making, and arbitrage is the AI-powered tool that has had the best performance in completing the successful buy/sell orders.

The real market makers — CoinPoint

It is undeniable that cryptocurrency exchanges are starting to get widely adopted by the entire Asian crypto community — talking about the huge conglomerates such as Huobi, OKEx, KuCoin, and Binance. On the other hand, there is an array of no-less-cutting-edge exchanges that are surpassing the trading giants both in a multifariousness of the trading platform and security & UI/UX of the infrastructure.

CoinPoint has witnessed, through its 6 years of existence, how Asian FinTech market withstood the surges of cryptocurrency — then slowly adopted it — went through a regulatory crisis — emerged victorious — and is currently in a phase yearning for adept, all-in-one marketing solution. Through this period, CoinPoint has not only contributed to major advances in adoption through educational channels but has physically been there to support it. With one of its offices in Manila, CoinPoint has helped blockchain ventures go viral by hand-crafting robust marketing strategies tailored to the company’s requirements.