Financial analysts believe that one of the main reasons that have contributed a lot to the rise in demand and value of cryptocurrencies like Bitcoin and Ethereum is that Japan, as well as many other asian countries, have relaxed their policies towards cryptocurrencies. This has made it much easier for people to trade and invest in them.
Many also believe that increasing demand from Asia is largely responsible for the cryptocurrency market’s sustained rally. Demand for cryptocurrencies is expected to rise even more in Asia as more and more countries ease regulations.
In many cases, there is even interest from official authorities. Some of these are briefly analyzed below.
China’s regulation guidelines
The Chinese People’s Bank, which is The Chinese equivalent to a Central Bank, will soon publish regulation guidelines regarding blockchain businesses. This will provide a framework for trading in cryptocurrencies and will certainly boost demand in the vast Chinese market.
Additionally, there are serious and reliable reports like the one coming from Inside Bitcoins that say that both China and Russia are investigating the possibility of creating their own national digital currencies with the use of Ethereum blockchain protocols. The same reports say that China has already started testing a digital version of Yuan in order to produce unique digital tokens that are compatible with Ethereum’s network.
India expected to legalize cryptocurrencies soon
Even though there is a lot of interest in cryptocurrencies in India and some of the best reports and analyses regarding cryptocurrencies are written by Indian analysts, no legal or regulatory framework exists in the country. However, according to “The Tech Portal,” this is expected to change very soon.
The Indian government has already appointed a committee tasked with investigating all factors concerning cryptocurrencies. The main goal of the committee is to suggest a proper regulatory framework that will ensure that no “under the table” trading takes place. Assuming that the committee reaches a positive conclusion, cryptocurrencies will be legal in India very soon.
This would certainly give an extra boost to cryptocurrencies because India has a population of more than one billion people. Additionally Indians are well-known IT specialists and will surely be interested.
More policy changes in Asia
Based on a report by ETHNews, the Monetary Authority of Singapore has already announced its intentions to develop a Central Bank issued digital currency that will be based on Ethereum blockchain protocols. Trials of a digital dollar have already started in the country.
In Taiwan, an Ethereum based blockchain is already being used to track food coming from organic sources to the final consumer. There are even more Asian countries that intend to change their policies and this will help sustain the cryptocurrency market growth.
