Renvale Capital, an investment firm specializing in managed forex account trading and cryptocurrency investments for private and institutional clients all over the world, is confident that Asia will provide significant opportunities in the cryptocurrency sector within the next 3 years.
Asia has the largest population of any continent with 4.4 billion people, harboring half of the world’s population. It is a metropolitan center filed booming with economic and financial success, and is looking to be a future gold mine in the cryptocurrency market.
Cryptocurrency investments have never been an issue for Asia, a continent that is filled with half of the world’s top 10 global financial centers.
Singapore is embracing cryptocurrencies, evident as the Monetary Association of Singapore recently declared that they are working on a new payment services regulatory framework and that these tokens could be structured in the form of securities.
Hong Kong is also gaining a reputation as ‘the cryptocurrency center of the world’ and ‘the best place in Asia to do a token sale’.
However, there are still large portions of underdeveloped nations that do not have access to the banking industry. Only 4% of Cambodia, 21% of Vietnam and 27% of Laos and Philippines are banked. With instantaneous access, these places will be connected to global capital, and underutilized resources will finally achieve their potential.
The more well-known bitcoin friendly countries are Japan and Korea, which hold the first and third most bitcoin traded volume in the world. China was also previously the world’s leader in cryptocurrencies before its government enforced stricter regulations, forcing the closure of several bitcoin exchanges.
It is speculated that these cryptocurrency bans in China will loosen gradually. The government is believed to have initially placed them to prevent high-profile incidents from occurring before the 19th Party Congress.
Bitcoin and cryptocurrency trade in China still continues to take place in underground economics, therefore it would also be in the best interest of the Chinese government to legalize and regulate the industry. If this happens, China would likely regain its spot as the leading cryptocurrency nation in the word.
Money remittance is one of the major sources of bitcoin growth in Asia, and this is expected to boom given the lower transaction costs compared to credit and debit cards. Of the world’s 500 billion US dollar international remittance market, half of it is located in Asia.
Asia also shows a lot of promise due to its weak and fragile local currencies. On November 8th 2016, India made all 1000 and 500-rupee banknotes invalid. While in Indonesia, some old rupiah notes have also ceased to be accepted as legal tender as of 2008.
The fragility of Asian fiat currencies, alongside an increasingly internet-connected population, appears to be an attractive combination for cryptocurrency penetration in the region.
Renvale Capital has announced their expansion in Asia, starting with Japan and Korea, before moving onto the rest of the region.
The firm has made an investment of 5 million US dollars to further develop their neural network algorithms and high-frequency computing hardware and software to exploit more arbitrage opportunities and gaining higher returns.
The firm will also seek to expand their cryptocurrency asset portfolio through joint ventures with other blockchain companies in Asia, with the goal of integrating bitcoin as a form of payment method in stores worldwide.
Will Collins, CEO of Renvale Capital comments, “Asia’s cryptocurrency growth is expected to boom in the next few years. It consists of the world’s most financially-integrated societies mixed with vastly untapped unbanked regions. Cryptocurrencies will form the link between these two different communities, allowing loans, relief funds and investments to flow easily to these less connected markets. These sectors will then be able to utilize their resources more effectively, propelling global development to new heights.”
Renval Capital has recently announced their intention to be listed on the Korea Exchange (KRX) and the Nikkei 225 by the end of 2018.
Asia continues its upward trajectory as an attractive investment destination globally, and seems likely to create many favorable opportunities for investors interested in the booming cryptocurrency markets.
