With information from binance.com, a popular cryptocurrency based-website, Chinese exchanges are wallet services are moving to other areas throughout the Asian continent. The area that it is moving to will hopefully not have as stringent regulations and jurisdictions on the use of cryptocurrency and initial coin offerings. These companies have begun to apply for licenses in other countries such as Japan and Singapore.
After the growing companies were essentially kicked out of China, they realized that in order to continue doing business, they would have to move elsewhere. China represents one of the largest digital currency markets in the world, and demand is continuing to rise. The industry currently represents $170 billion in currency and is continuing to grow.
Hong Kong-based Lennix Lai, the financial market director for OKEx, which is backed by OKCoin, recently stated that “China used to account for a significant share of the cryptocurrency market, so we think the demand is there. As formerly one of the biggest operators in China, we think we have a good chance of competing globally.”
The startups in the crypto world have a high chance of failure due to the massive amount of competition. Moving out of somewhere as large in the industry as China could potentially help these companies to grow. With the crackdown that China has continued to enforce, it was only a matter of time before companies moved else where.
The newest area for these companies to go to is Japan. Japan has become a safe haven of sorts for these companies as the government is attempting to build the market within its borders. Hopefully these companies will find a safe space in the world, and ultimately continue to grow this emerging market.