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TEXXR

Chronicles

The story behind the story

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Chainalysis: emerging markets, led by Vietnam and the Philippines, drove global cryptocurrency adoption over the past year; China remained active despite a ban

The blockchain analytics firm's 2022 Global Crypto Adoption Index also shows China remains active despite a ban on crypto trading. Source: Chainalysis .

CoinDesk Sandali Handagama

Context & Ripple Effects

This is the second straight year Chainalysis has crowned an emerging market as the world's top adopter: last year's 881% year-over-year surge was led by Vietnam alongside India and Pakistan, and the 2022 index keeps Vietnam at the front while adding the Philippines as a co-driver of grassroots growth measured through P2P exchange volume.

The China finding is the sharper signal. A year after the ban, Chainalysis still records meaningful Chinese activity, and later coverage confirms the pattern held — illicit activity persisted per Bloomberg reporting, and over-the-counter broker inflows topped $20B per quarter, reaching $75.4B across late 2023 into mid-2024. The following year's index kept India, Nigeria, and Vietnam in the top five, confirming emerging-market dominance was structural, not a one-year spike.

First-order effects

  • Vietnam and the Philippines are validated as the centers of grassroots crypto usage, giving local exchanges and P2P desks in those markets the largest organic user bases globally.
  • Beijing's trading ban is shown not to have suppressed domestic demand — Chinese users route around it, which is exactly what the later OTC-broker flow data confirms.

Second-order effects

  • Regulators in high-adoption emerging markets face pressure to formalize rules rather than copy China's prohibition, since the ban model is now demonstrably leaky at scale.
  • On-chain analytics firms like Chainalysis gain commercial and policy leverage: governments that cannot stop usage fall back on measuring it, making adoption indices and flow tracking standard regulatory inputs.

Third-order effects

  • If the multi-year pattern holds — Vietnam and India topping successive indexes while banned China keeps transacting — global crypto adoption consolidates as an emerging-market, P2P-driven phenomenon that enforcement alone cannot reverse, pushing major economies toward surveillance-and-licensing regimes instead of bans.

The trend: Grassroots cryptocurrency adoption is durably centering on emerging Asian markets while national bans redirect activity into informal channels rather than eliminating it.

Discussion

  • @kimberlygrauer Kimberly Grauer on x
    This past year, the crypto-media has been focused on crypto-hedge funds and DeFi liquidity. The real story is in how crypto has been adopted to service endless socio, economic, and political needs around the world. Check out our Global Adoption Index. https://blog.chainalysis.com…
  • @fedorovmykhailo Mykhailo Fedorov on x
    Ukraine is among world's top 3 countries on crypto usage due to the recent report of @chainalysis. Another proof that 🇺🇦 is all about the freedom. https://blog.chainalysis.com/ ...