Not every user of cryptocurrency, especially in the United States, aware of what a huge influence Asian markets on the cost and volume of trading of Bitcoin and other altcoins. Three countries, three key players — Japan, China and South Korea, which accounted for more than 50% of the trading volume in 2017. Let’s look at the role of each of these States in the fate of Bitcoin.
The Role Of Japan
Japan is considered the homeland of the cryptocurrency. The world’s first mining operations were carried out in this country. It is believed, due to the pseudonym, Satoshi Nakamoto launched its activity in this state.
The popularity of digital currencies among the Japanese public just rolls over. They are not only used in everyday transactions, in their honor called the institution and even dedicate songs to them. As for panania their financial institutions, it is worth noting that the number of banks open the accounts in Bitcoin and other cryptocurrencies.
The Japanese government initially did not intervene in the activities of the cryptocurrency market. The first regulations were adopted after the collapse of Mt. Gox in 2014.
In order to increase transparency in this area, the government launched the licensing program for virtual exchanges, wallets and payment systems.
Apparently, Japan plans to continue its plan to become the first country in which cryptocurrency recognize completely legal.
China and cryptocurrency
There was a time when investors from China are completely controlled by the Bitcoin. Chinese exchanges accounted for 90% of daily trading volume in Bitcoins. In September 2017, the Chinese authorities “pulled the cryptocurrency oxygen”.
This has led to a drop in world markets. Trading volume in China fell to 6 %. Most of the exchanges and miners moved to Hong Kong, which is not subject to the same rules as the rest of China.
The head of Hong Kong’s Bitcoin operations Lao the UEZ said that thousands of active investors with significant reserves of cryptocurrencies are still in operation from China, but their number is much lower than it once was.
China continues to play an important role in the fate of cryptocurrency only due to the large number of mining operations in the country. Mining requires a large power consumption. As the cost of energy in China is much lower than in other developed economies, many investors have moved its operations in the Asian country.
The Role Of South Korea
South Korean investors are a little late with the release on the market, however, even in such a small amount (considering the number of population of the state) managed to lead the bullish trend and raise Bitcoin above $ 15 thousand
In January 2018, the South Korean regulatory authorities loudly announced his intention to ban the cryptocurrency trading, since they are used for criminal activity and money laundering.
Since January, the government’s position softened somewhat, but still there is no indication that everything will return to normal.
From all the above we can conclude that if Bitcoin and other cryptocurrencies will be forced to withdraw from the Asian market, it is unlikely that they will have a chance to survive.