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Everything You Need to Know About Regional Crypto Adoption Trends in 2023

Chainanalysis Assessment of Regional Crypto Adoption

Published in: One Trading · 5 min read

As crypto continues to grow in popularity, it's useful to understand where this trend is heading. The 2023 Geography of Crypto-Assets Report by Chainalysis provides invaluable information about regional trends in crypto adoption. If you're a crypto enthusiast, you'll want to know what regions are leading the way in crypto adoption and what the future holds. In this blog post, we'll delve into some of the key takeaways of the report and what they mean for the world of crypto. Our previous article on the Chainanalysis report focused on the top 3 growing nations in crypto adoption and the grassroots trends in LMI countries. This article considers the regional trends across the globe. 

Worldwide trend

With a strong start in 2023, by Q2 Global index dropped overall, with most decline coming from low-income countries, followed by high-income countries. The decline in crypto adoption was mostly attributed to institutional investors, whereas retail investors' activity remained constant.

Overall, given current crypto trends, rates of institutional adoption of digital assets in high-income countries provide a positive outlook on the future of the crypto industry worldwide.

The Financial Stability Board (FSB) was established in 2009 to monitor and make recommendations on the global financial system. The FSB is responsible for coordinating international financial regulation, promoting international financial stability, and furthering a level playing field for all countries. One of the agenda points is crypto-assets and global "stablecoins", and in July 2023, the board finalized the global regulatory framework for crypto activity.

Asian crypto market

According to the 2023 Geography of Crypto-Assets Report, Asia is the leader in crypto adoption, with countries like China and Japan leading the way. This is due in part to Asia's high population density and the fact that many Asian countries have strong tech industries. This region has also been quick to adopt new technologies in the past, making it more open to the adoption of crypto.

Central & Southern Asia and Oceania, have the highest regional crypto adaptation index ranking with India, Vietnam, Philippines, Indonesia & Pakistan leading the way.

Europe

Europe is another region that is seeing a high rate of crypto adoption. Countries like Switzerland and Malta have become hotbeds for crypto startups, while other European countries are also making progress in the field. These countries have strong emerging crypto industries due to relatively clear guidelines on setting up business, as well as clear guidelines on facilitating crypto transactions. The report also suggests that the European Union is taking steps to create a more unified approach to crypto-assets regulation for EU member states, which could help to stimulate further adoption from retail and institutional players alike.

Germans are among the most advanced crypto users and emerging technologies. For example, the German Central Bank partnered with the Dutch counterparty on "Project Atlas" to map on-chain crypto transactions.

On top of that, two Eastern European emerging markets, Ukraine and Russia, are at the forefront in terms of both centralized service and DeFi.

North America

In North America, the United States continues to be a leader in the crypto world, with several major exchanges and crypto companies headquartered there. Most notably, Coinbase (COIN), headquartered in San Francisco, is one of the largest crypto-related equities by market cap that can be publicly traded. However, some experts suggest that the regulatory environment in the US is hindering growth in the field and causing some companies to move overseas. Canada is also making progress in crypto adoption, with a growing number of crypto startups and a supportive regulatory environment.

North America (mostly USA) accounted for 24.4% ($1.2T) of digital assets value traded on-chain in July-June 2023.

South America

In South America, countries like Brazil, Venezuela, and Argentina are seeing steady growth in crypto adoption, but the region as a whole is still lagging behind other areas. High crypto market integrity and strong preference towards centralized exchanges in this region is related to national currency devaluation

The emerging market of Brazil is in the 9th place among several countries, like Argentina and Mexico, closing the Top 15 in 2023. The interest of institutional investors in DeFi protocols fueled the crypto industry of Brazil.

Mexico is among the few countries worldwide to deliver great results regarding peer-to-peer transactions. Hundreds of millions worth of digital assets in US dollars are flown into the country as remittances.

Africa

Finally, Africa is a region with enormous potential for crypto adoption, but also significant challenges. Many African countries have high rates of unbanked populations, making crypto potentially very useful for financial transactions. However, infrastructure challenges and regulatory roadblocks are also common in the region.

In 2023 Nigeria ranked second on the Crypto adoption index.

Conclusion:

The 2023 Geography of Crypto-Assets Report sheds valuable light on the regional trends in crypto adoption that will likely shape the future of this industry. Asia and Europe are leading the way, while North America, South America, and Africa all have unique opportunities and challenges.

Thanks for reading!

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