Tether, the stablecoin with the industry’s largest market cap and volume, has had its fair share of controversies this year. However, despite these concerns and the regulatory hurdles Tether is facing right now, countries like China are recording huge crypto-activity.
Over-the-counter(OTC) trading in China has significantly surged over the last few months.
According to a study by Chainalysis, Chinese traders have been increasingly acquiring Bitcoin with the help of Tether, with some 99 percent of the total in spot trades. And while fiat currency yuan has almost been completely displaced in China, trading markets in Japan and Korea continue to conduct a majority of their trade with fiat.
The research report further stated that about 50% of the top crypto-exchanges that accounted for Bitcoin transactions were based in Asia. These crypto-institutions were responsible for roughly 39 percent of all Bitcoin trades in the first six months of 2019.
Trading volumes in the Futures market and options were dominated by these exchanges as well, amassing nearly 90 percent of the contracts traded worldwide.
Tether’s market share has never seemed to be in danger, despite the recent episode with Bitfinex and the NYAG. In fact, the world’s largest stablecoin has a market cap that exceeds well over $4 billion.
China has been omnipresent in the spot trading market since 2018, after it was announced that Chinese users cannot directly access virtual assets with the help of yuan. However, Binance, the one of the world’s largest crypto-exchanges recently launched a crypto-spot exchange in China, which enables peer-to-peer yuan trading services.
OTC crypto-trading has certainly benefited massively following the ban in China, as demand gradually began to rise. Chainalysis had claimed that data from only ten OTC services recorded a trade of $877 million in Bitcoin in 2019, a figure which was up by 56 percent over the past year alone.