Eric Ma, CEO of TIDEX, comments on the influx of crypto users through the year and the shifting sands of adoption against an increasingly hostile regulatory backdrop.
Following the momentous crypto market rally in 2021, the sector has encountered a slew of obstacles in the past year, such as regulatory ambiguity, with assets like Bitcoin (BTC) experiencing significant selloffs.
Despite this downturn, there has been an exponential surge in the influx of users entering the cryptocurrency realm.
The latest data indicates that the number of crypto users has soared to 417.5 million as of 2023, representing a year-over-year (YoY) growth of 36.88%. This translates to an addition of 112.5 million users compared to the 305 million recorded in 2022.
Asia takes the lead with 260 million users as of May 2023, marking a staggering 100% growth from the previous year’s figure of 130 million. North America follows with 54 million users, witnessing an increase of three million compared to the 2022 count of 51 million. Among the regions, Africa recorded a drop of 28% from 53 million to 38 million. European users also dropped from 43 million to 31 million.
A breakdown of crypto ownership in relation to population per country indicates that Thailand ranks first in 2023, with a share of 9.32%. India is second with 7.23%, followed by Brazil at 6.98%. Pakistan ranks fourth with 6.4%, while France rounds out the top five with 5.9%.
Commenting, Eric says: “It’s always interesting to see which countries have citizens who embrace cryptocurrency. Many times these numbers indicate the direct correlation of economic conditions of each country. Countries who have high levels of unbanked citizens tend to have higher percentages of crypto ownership. This makes a lot of sense to me.”
How is regulation impacting crypto uptake?
Regions with stricter regulations, such as North America and Europe, are projected to lose crypto business to Asia-Pacific. This is further highlighted by the fact that Asia experienced the highest YoY user growth rate.
One notable trend in usage indicates that Europe saw a drop. The drop has coincided with the region’s enactment of the Markets in Crypto Assets (MiCA) law. The law aims to create a legal framework designed for the market of crypto assets.
The content of the law has been dubbed to act as the global benchmark. Elsewhere, Africa likely experienced the repercussions of the bear market, leading to a decline in user numbers, particularly considering the region’s lack of notable advancements on the regulatory front.
As the cryptocurrency market looks to recover from the ongoing downturn, the number of users will likely grow, especially led by regions that enact friendly regulations. Similarly, the user count might receive a boost from a potential increase in demand for cryptocurrency among banks and financial institutions and untapped potential in emerging economies.
Concluding, Eric Ma commented: “With only 4.2% of the world’s population owning cryptocurrency, that number is expected to double over the next two years. Eventually we’ll reach a stage in crypto where it isn’t about market conditions anymore but true crypto adoption where it’s used regardless of market conditions. I strongly believe that day will come in my lifetime and I can’t wait to experience it.”
