Hong Kong’s crypto adoption ranking drops one spot in Chainalysis report

September 18, 2023

By Sharan Kaur Phillora

Hong Kong’s position in the global cryptocurrency adoption rankings has seen a slight decline, even as the city is actively trying to establish itself as a central hub for virtual assets. As per the upcoming 2023 Global Crypto Adoption Index by the blockchain research firm Chainalysis, the city now ranks 47th, down from 46th in 2022.

Here’s what we know: 

Chainalysis recently released a snippet of the index, presenting the top 20 out of 154 countries and regions they monitor to pinpoint where the most substantial portion of the population is directing their wealth into cryptocurrency. Leading the list is India, followed by countries like Nigeria, Vietnam, the US, Ukraine, and the Philippines.

Interestingly, Mainland China, which stands at the 11th spot this year, has seen a similar decline of one position from the previous year. Yet, it continues to rank higher than nations such as Russia, the UK, Japan, and Canada. Last year’s data from Chainalysis highlighted China’s pronounced engagement with centralized crypto exchanges, hinting that the nation’s crypto trading ban may not be as stringent or effective as presumed.

Chainalysis’ assessment accounts for transaction volumes over various cryptocurrency services and is adjusted according to a country’s gross national income, as outlined by the World Bank. Notably, many leading countries in this year’s adoption rankings fall under the lower-middle-income category, which may suggest their need to explore crypto-based solutions for remittances, particularly given inflation rates or other economic constraints.

Almost a year has passed since Hong Kong announced comprehensive plans to enhance its virtual asset industry, aspiring to compete with global leaders like Singapore and Dubai. These initiatives drew substantial interest from major crypto exchanges, especially those with Chinese roots, such as Huobi and OKX.

Following its ambitious announcement, Hong Kong introduced a novel licensing structure this June. This system permits centralized exchanges to cater to retail investors, granted they adhere to the new set of guidelines from the Securities and Futures Commission (SFC). 

Notably, local crypto companies HashKey and OSL have had their licenses expanded, enabling them to serve a broader retail audience. With HashKey recently opening its doors to retail investors, the company ambitiously hopes to onboard up to a million retail users globally by year’s end.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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