Here's Why The Next Billion Crypto Users Could Be Much Closer Than You Think

A Shanghai court’s opinion that owning cryptocurrency is legal for individuals has given China’s crypto enthusiasts a fresh dose of clarity. While commercial activities related to crypto remain off-limits on the mainland, this legal recognition is an important development for a nation whose official stance on digital assets has often felt inconsistent at best—and outright hostile at worst.

Across the border, Hong Kong continues its push to welcome digital asset businesses. With four new cryptocurrency exchanges recently approved—bringing the total to seven—Hong Kong is working hard to bolster its presence as a global crypto hub.

At first glance, these developments may appear incremental. But beneath them lies a massive pool of Chinese consumers who have been eyeing crypto from the sidelines—just waiting for the right conditions to step in.

Hidden in plain sight: hundreds of millions of prospective users

Recent Protocol Theory research highlights the enormity of this latent demand for crypto in mainland China. In a large-scale, multinational survey of over 4,200 consumers in 10 markets across APAC – including China, Hong Kong, Singapore, South Korea, Australia, Japan, India, Thailand, Philippines, and UAE – a full half (50%) of all Chinese respondents indicated that they are either actively considering or open to investing in crypto, far above the regional average of 31%.

Furthermore, China’s Innovation Adoption Propensity—the percentage of Innovators and Early Adopters that exist within the country’s general population, and one of the strongest predictors of overall cryptocurrency adoption—stands at 43%, considerably higher than any of the other nine APAC markets we surveyed (27% regional average).

Yet, despite such strong interest, crypto adoption in China sits at a mere 17%, held back largely by regulatory barriers. In fact, 32% of Chinese respondents cite regulatory concerns as a major reason for staying on the sidelines—significantly higher than the region’s 25% average, and a more pressing concern in China than other factors such as a lack of understanding (30%), perceived risk and volatility (28%), or a lack of trust in cryptocurrencies generally (18%).

But here’s the kicker: if these regulatory concerns were eased, our data suggests that up to 546 million people in China could adopt crypto over the subsequent months and years. That’s more than the entire population of the United States and would effectively double the total number of crypto users that currently exist worldwide today.

A different motivation

Of course, an important question is: “What exactly is driving such significant latent demand for crypto in China?”. If you had guessed the potential for financial gains and investment returns—as is the case in all nine other APAC markets we surveyed—you’d be wrong. Instead, the primary motivator for Chinese consumers to adopt crypto is to protect against inflation or currency devaluation—with this being cited by 41% of respondents, well above the 33% APAC average. Additionally, more than 1 in 3 (39%) of Chinese respondents indicated that “maintaining privacy and anonymity in transactions” is a key factor, comfortably surpassing the regional norm of 28%.

In other words, Chinese consumers aren’t just in it for speculative returns. They see crypto as a hedge against economic uncertainty and a way to take more control over their financial transactions.

Could this double global crypto adoption?

With 57% of Chinese respondents viewing crypto favorably—outpacing other major markets like Singapore, South Korea, and Australia—the potential for rapid mainstreaming is enormous. Should even a fraction of these individuals convert their interest into action, global adoption rates could soar, possibly doubling sooner than many observers expect.

That’s exactly why you’re seeing such keen interest in Hong Kong’s licensing initiatives—and why crypto businesses worldwide are paying close attention. If mainland regulations relax in tandem with Hong Kong’s pro-innovation environment, the resulting wave of adoption could be unprecedented.

The road ahead

Many of the world’s largest crypto businesses are eyeing China and Hong Kong, waiting for signs that the door might open wider. If and when that day comes, those prepared to meet consumer demand with secure, user-friendly products will stand to reap enormous benefits.

For now, China’s crypto community remains in a state of watchful anticipation, buoyed by gradual policy updates and neighboring Hong Kong’s robust licensing progress. But from our vantage point at Protocol Theory, one thing is clear: once this market truly unlocks, it could dwarf anything we’ve seen before—and the next billion crypto users may indeed be much closer than you think. ◼️

Interested in digging deeper into our data on crypto, Web3, and emerging tech adoption across APAC? Get in touch with Protocol Theory to learn more about our latest consumer insights research.

About the Data: The data cited in this article is based on a Protocol Theory study of 4,267 general population consumers across 10 key markets in APAC, published in collaboration with CoinDesk ahead of their inaugural Consensus Hong Kong event in February 2025. The full report—containing 100 pages of additional data and insight—can be accessed here.

About the author:

Jonathan Inglis is the founder and Managing Director of Protocol Theory, the world's leading consumer insight, analytics, and strategic consulting company dedicated to Web3, AI, and emerging tech. He has over a decade of experience collaborating with global brands to help them better understand users, consumers, and markets via actionable, evidence-based consumer insight.