A while slowing down by the period of low volatility of Bitcoin (BTC), P2P transactions involving cryptocurrency seem to have picked up again in Asia. This recovery has also enabled new players to increase their market share and signal their presence. Thus, if Paxful has been able to take advantage of the rise in bitcoin prices, China is dangerously seeing it coming. India vying for its place as the biggest contributor to the volume of P2P in Asia. Explanations.
A year marked by growth in P2P exchanges in India
Unlike exchanges, LocalBitcoins offer a P2P bitcoin exchange model that has won over users. Since the implementation of the KYC verification procedure, they have nevertheless lost their market share for the benefit of platforms like Paxful. The latter took the opportunity to become the largest P2P exchange in Asia. The upward trends of bitcoin for 2 months helping, there is a discreet redistribution of cards in the region. According to data published by Arcane, two countries lead the P2P trading volume in this area with 33% each.
China and India, since those are two of them, are neck and neck in the debate, while the former has always dominated the latter in the past. India’s performance has its origins in the proliferation of P2P trading platforms in the country. Conversely, China has experienced a downturn in this area, especially since the ban on buying bitcoin in Chinese yuan. While China’s observed trade volume has fallen to $ 5 million per week, India’s is on the rise. So it could be that the country becomes the largest contributor to the volume of P2P on the continent.
A weekly P2P trading volume up 87%
In 2019 alone, India transferred funds totaling $ 83 billion, according to World Bank data. This figure represents about 2.9% of the country’s total GDP and makes him one of the main recipients of remittances. Faced with the horrors of the COVID-19 pandemic, the population has resolutely turned to bitcoin to build on the momentum from the previous year. Several exchanges like Binance have also supported this much more convenient method of payment. One of the consequences of all of this isincrease the weekly P2P transfer volume in India by 87%.
Despite an unfavorable regulatory framework, India seems to have definitively adopted this formula which will eventually make it the holder of the largest volume of P2P trading in Asia. Things should accelerate at the end of the year with the current bull cycle in bitcoin.