A series of cryptocurrency bans took place around the world in 2021. This was primarily due to the rise of fraudulent cryptocurrency organizations. Countries like China were the most affected. However, this did not discourage cryptocurrency adoption. Despite government bans, China was well prepared against fraudulent activities. Thus, China ranks top 10 among countries embracing Bitcoin in 2022.
According to a report by Chain analysis, a blockchain analytics firm, China is doing reasonably well. The firm uses a Cryptocurrency Adoption Index to assess cryptocurrency performance in various countries. Using a unique ranking formula, Vietnam ranked first, then the United States. China ranked 10. The procedure consists of overall indexing, which results in an evaluation of 5 categories. These are the overall index score, centralized service value received ranking, retailed centralized service value received order, P2P exchange trade volume ranking, and the DeFi value received the order. The 2022 cryptocurrency adoption ranking is as follows:
- United States
The chain analysis report is interesting because it captures changes in rankings and countries involved in Bitcoin worldwide. The five indexes portray an overall index score of each country. These indexes can be calculated based on the percentage of income used in cryptocurrencies and bitcoin. The country with the highest volume accumulation cannot be ranked as the highest rank for adoption because it embodies a smaller portion of the population’s income.
A country with considerable accumulation but seldom is involved in P2P transfer value can have a lower rank in the global index rank. A good example is India, ranked first in all metrics except for the P2P transfers that have made it fourth in the world.
In summary, using global indexes to rank different countries on the use of bitcoin and cryptocurrency is essential in helping investors. It also helps to create cryptocurrency awareness and increase adoption.
Even though China is harsh towards cryptocurrency, it protects its citizens against fraud. The past few months have seen an increase in cryptocurrency scams. China admits that even though it is hostile towards cryptocurrency, it allows its users to own cryptocurrency. The nation also protects its cryptocurrency holders against theft. The Chinese government recognizes cryptocurrency as virtual property, and the law protects virtual property.
David Lesperance, a lawyer, refers to a recent court case in China involving Litecoin. In the court case, the defendant failed to pay back 50,000 LTC borrowed from the plaintiff in 2015. The defendant argued that China had banned cryptocurrency. Therefore, there was no reason for him to pay it back. Surprisingly, the court ruling was against the defendant. The court said that the People’s Bank of China has not banned cryptocurrency and that the defendant should pay the plaintiff. The lawyer further told CoinDesk that,
“The court has upheld that cryptocurrencies like Litecoin are “property” even though they are created in the virtual realm.”
Indeed, China does not want its citizens to trade cryptocurrency. However, this does not mean the country will not protect traders against fraud. According to Lesperance, trading and cryptocurrency exchanges are illegal in China; however, owing cryptocurrency is not illegal. Even though many users trading cryptocurrency in China have frozen bank accounts, some trusted over-the-counter (OTC) channels still allow for cryptocurrency trading. China will continue to rank top 10 because of its tight security measures.