Home Markets Can you guess which is the best on-ramp for crypto in Asia and Oceania? Here is the answer

Can you guess which is the best on-ramp for crypto in Asia and Oceania? Here is the answer

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Can you guess which is the best on-ramp for crypto in Asia and Oceania?  Here is the answer
Source: Adobe Stock / Rokas

According to a new report, non-fungible tokens (NFTs) are the biggest on-ramp to the cryptocurrency market among Central and South Asia and Oceania (CSOA) countries.

Intelligence firm Blockchain Chainalysis said in a new report that the Asian region received $932 billion worth of crypto from July 2021 to June 2022, largely thanks to NFTs.

The study found that web traffic from IP addresses related to countries in the region to cryptocurrency services was mostly related to NFT. In the second quarter of 2022 alone, 58% of CSOA IPs accessing crypto services visited NFT-related websites. Another 21% was on blockchain play-to-earn game websites – which are “intimately tied” to NFTs, as most in-game items are NFTs.

According to Chainalysis, the discovery is not entirely surprising as the region is an innovative hub for blockchain-based entertainment. Several gaming-centric blockchain developers, including Polygon, Immutable X, Axie Infinity, and STEPN, operate out of countries in the region.

Similarly, at the national level, countries in the region, including Vietnam and the Philippines, are among the global leaders in blockchain gaming adoption. Meanwhile, the third most popular driver of core blockchain adoption in the region was remittances.

Globally, the CSOA region has become the third largest crypto market, while seven countries in the region – Vietnam, Philippines, India, Pakistan, Thailand, Nepal and Indonesia – were among the top 20 crypto markets.

Regulation remains a drawback to wider crypto adoption in the region

Despite the success of the crypto market in the region, the industry still faces stringent regulatory regimes that could have hindered its progress. The report highlighted India and Pakistan as examples of countries where regulations have stifled crypto market growth in the region.

Earlier this year, Pakistan’s central bank and government proposed banning cryptocurrencies in the country. Since then, up to three committees have been set up to deliberate on the recommendation without reaching any decision so far.

In India, the government has long had a crypto-averse stance having previously proposed to ban the asset class. The government introduced a 30% tax regime for crypto gains in April which has seen crypto exchange trading volumes plummet amid outcry that there are no regulations to guide the industry.

According to a Bloomberg report, these market protests have been ignored by the Indian government which is now using the the police are issuing threats of arrest to crypto investors.

The less-than-favorable regulatory climate in several other countries in the region weighed on the region’s rankings, causing it to drop in Chainalysis’ Global Crypto Adoption Index. from 2021.

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