Cryptocurrencies: Asia will be the engine of the next bullish cycle

 Cameron Winklevoss, co-founder de Gemini, joins the criticism against the SEC and US regulators.

Seoul, capital of South Korea

The cryptocurrencies have started the week hesitantly. Bitcoin (BTC) is testing $25,000, and some experts point out that this week could be crucial in determining whether the crypto king heads towards $30,000 or $20,000. Analysts believe that the Federal Reserve's (Fed) minutes, which will be published this Wednesday, could provide the answer, while others, like Cameron Winklevoss, the co-founder and CEO of Gemini, suggest that the key to a bullish trend reversal will come from Asia.

"My working thesis right now is that the next bull run is going to start in the East. It will be a humble reminder that crypto is a global asset class and that the West, actually the United States, has always had two choices: adopt it or get left behind. You can't stop it. That we know," he said in a tweet.

My working thesis atm is that the next bull run is going to start in the East. It will be a humbling reminder that crypto is a global asset class and that the West, really the US, always only ever had two options: embrace it or be left behind. It can't be stopped. That we know.

— Cameron Winklevoss (@cameron) February 19, 2023

Asia Central and South and Oceania ranked third in the cryptocurrency market in 2022, according to Chainalysis. Data from the blockchain analysis firm indicates that investors in this region received $932 billion in cryptocurrencies between July 2021 and June 2022. Additionally, seven of the top 20 countries in Chainalysis' benchmark index are in this region: Vietnam (1), Philippines (2), India (4), Pakistan (6), Thailand (8), Nepal (16), and Indonesia (20).

Other experts, such as former BitMEX CEO Arthur Hayes, have also pointed in this direction. In an article last October, Hayes indicated that cryptocurrencies would experience a bull cycle when China re-entered the market.

He also highlighted the potential importance of Hong Kong in this process, both as a gateway to the Asian giant and as a testing ground for Beijing. In January of this year, the island nation signaled in this direction, positioning itself as a cryptocurrency-friendly nation and a trusted intermediary with China.

On the other hand, DBS, the largest bank in Southeast Asia, has revealed that the trading volume of its digital assets platform increased by 80% in 2022, while the trading volume of ethereum (ETH) surged by 65%. An executive at DBS stated that the firm believes that the market "has decisively shifted its focus towards trust and stability, especially after the multiple scandals that have rocked the sector."

Criticism of the SEC's Approach to Cryptocurrency Regulation

On the other hand, Winklevoss has criticized the recent actions taken by the Securities and Exchange Commission (SEC) of the United States, stating that governments that do not provide "clear rules and sincere guidance" will quickly fall behind in the race for adoption.

Any government that doesn't offer clear rules and sincere guidance will be left in the dust. Quickly. This will mean missing out on the greatest period of growth since the rise of the commercial Internet.

— Cameron Winklevoss (@cameron) February 19, 2023

In addition, he added that "this would mean missing out on the greatest period of growth since the emergence of internet commerce. It would also mean missing out on the opportunity to shape and be an essential part of the future financial infrastructure of this world (and beyond)".

The SEC has taken drastic regulatory measures against cryptocurrencies recently, specifically targeting stablecoins. The regulator has fined Kraken for offering staking services, sued Do Kwon and Terraform Labs, and threatened legal action against Paxos Trust, the issuer of the Binance USD (BUSD) stablecoin, considering both products to be unregistered security offerings. It is worth noting that the Commission has made the same accusations against Gemini and Genesis, following the Gemini Earn program.

Some experts suggest that the SEC's focus on stablecoins has less to do with the regulator's stance on these tokens and more to do with its opinion of Binance, the company that licensed BUSD to Paxos. The world's largest exchange is being investigated for alleged money laundering in the United States, and its name has appeared in the investigation of the shuttered exchange Bitzlato, which was the center of a criminal money laundering network. Additionally, a Binance spokesperson announced that they are willing to pay a fine to settle their outstanding issues with US regulators.