In 2023, two countries in Eastern Europe and the CIS showed a high index of cryptocurrency adoption. Thus, Ukraine took fifth place in the ratings of crypto-friendly countries, and Russia took 13th place. Other countries, such as Belarus, Kazakhstan and Uzbekistan, are also following the path of mass adoption, which makes this region very attractive for crypto business. This point of view is also supported by the executive director of the Bitget exchange, Gracy Chen. In an exclusive interview, we discussed the main trends in the development of the crypto market in 2024, and also learned her stance about the role of the CIS in the global cryptocurrency sector.
CN: Gracy, what main trends of the crypto market would you highlight today?
G.C.: The cryptocurrency market is still developing, although we can already see a certain maturity of the sector. This is evidenced by a number of factors such as regulation. If just a few years ago world regulators were focused on limiting or completely banning the circulation of cryptocurrencies, today we see mitigation of the situation. American, European and Asian leaders are striving to streamline the circulation of digital assets in the world, to develop unified global mechanisms for the use of cryptoassets, and this sends a positive signal to large investors. The more transparent and understandable the circulation of cryptocurrencies in the world becomes, the faster we will be able to talk about the mass acceptance of these assets in society.
CN: What other aspects of the market could you pay attention to?
G.C.: The second aspect I would like to focus on is security. In 2023, the number of hacks decreased by 54%. This is a serious indicator for the crypto market. We see that the use of cryptocurrency is becoming increasingly safe and secure. This is largely due to the companies themselves working to improve the security of their tools. For example, we personally consulted with the developers of the Ledger hardware wallet and pointed out vulnerabilities. The developers listened to our recommendations and corrected shortcomings in the wallet. In addition, our team is constantly working to improve the security of all systems in order to securely store not only users’ money, but also their personal data.
CN: More and more analysts are highlighting the growing adoption of cryptocurrencies in the world, how do you assess this trend?
G.C.: I cannot help but note the growing education of the population in the use of cryptocurrencies. Today, we see an established trend that indicates that more and more people want to learn blockchain technologies and use crypto-assets in everyday life. Bitget happily supports educational initiatives and even implements its own Blockchain4Youth program to increase the level of literacy of the population in the use of digital assets. In general, the world is turning towards cryptography and cryptocurrencies, and this is a positive sign.
CN: And if we talk about the CIS and Eastern Europe in general, what are the features of the crypto market here? In general, how interesting can it be for big business, given the political and economic situation?
G.C.: Eastern Europe and the CIS in particular have always been and remain promising regions for crypto business. Ukraine and Russia are among the top 20 countries in terms of cryptocurrency adoption. In Ukraine alone, 10% of the population are holders of crypto assets, which is almost 6.5 million people. In Russia there is approximately the same number of crypto holders. At the same time, in 2023, earnings from the use of digital and cryptocurrencies in Russia exceeded $1 billion, in Ukraine — $850 million, in Kazakhstan — $170 million. This indicates not only the high level of acceptance of cryptocurrencies in the region, but also its financial potential for business.
CN: A difficult question: how do you think the situation in the CIS and Eastern European markets has changed over the past two to three years?
G.C.: After Binance left the Russian market, there was a shift in power in the cryptocurrency sector, which changed the leaders in the region. Today Bitget is one of the top 5 cryptocurrency exchanges in the CIS. And I am sure that we have every chance to enter the top 3 cryptocurrency exchanges in the region in the near future. I would also like to mention Kazakhstan as the country with the greatest potential for crypto miners. Loyal legislation and relatively low cost of electricity attract miners from all over the world. This country has every chance of becoming an oasis for miners and attracting large businesses. Despite geopolitical tensions, the CIS remains a fairly attractive region for crypto business, so large companies will increasingly pay attention to this region.
CN: What problems might Eastern Europe face in terms of accepting cryptocurrencies and developing the cryptocurrency sector?
G.C.: I would highlight several limiting factors. The first and main thing is geopolitical instability. In fact, the CIS is a very attractive region for investors, and I’m not just talking about crypto business. But the tense situation between Ukraine and Russia does not allow attracting as much investment to the region as could actually be attracted. The second factor is regulation. So far, only Ukraine and Kazakhstan are making attempts to regulate the circulation of cryptocurrencies and make it transparent and understandable. The rest of the CIS countries are still wary of cryptocurrencies and are in no hurry to pass laws that would completely legalize the use of cryptocurrencies.
CN: How will the crypto business develop in 2024? What trends would you highlight?
G.C.: Now the crypto market is entering a bullish phase, but we will only be able to talk about a real bullrun in 2025. After almost two years of crypto winter, business will begin to revive and transform. What main trends would I note?
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Emphasis on Aİ. Artificial intelligence will continue to have a major impact on the crypto market. Today, crypto users have Aİ trading bots, oracles, assistants and mentors at their disposal. Computer algorithms will continue to develop and help traders and investors earn even more. Today we see the rapid development of the AI sector. Every day we are contacted by dozens of startups that are developing various solutions based on artificial intelligence and machine learning technology.
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Transparency and security. Just a few years ago, crypto companies were quite closed to users and regulators, so there were certain problems with liquidity and other problems. Today we are seeing more and more companies, including Bitget, becoming clear and transparent to users. For example, we publish a monthly report on the state of reserves and the size of the insurance fund, inform about innovations and are constantly in touch with our clients. I know that a number of other crypto exchanges are implementing similar initiatives. And this is a positive factor.
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Education and popularization of blockchain technologies. To ensure a constant new influx of users into crypto projects and companies, it is necessary to increase the level of knowledge about crypto and blockchain technologies among the population. This is what global companies will be focusing on in the coming years. Bitget is also implementing its Blockchain4Youth educational campaign with world universities, the main goal of which is to improve the education of young people and generation Z.
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Social responsibility. Crypto business, due to the development of regulation, is coming out of the shadows and becoming more open to society, including helping it solve social problems. More and more cryptocurrency companies are launching their charitable and social initiatives, providing assistance to victims of natural disasters, pandemics and conflicts. And this trend will gain momentum in the future. As for Bitget itself, we are implementing a number of social initiatives, including situational assistance to victims of various natural disasters, and we have also launched the Blockchain4Her program to support women entrepreneurs, within which participants can receive not only important expert advice, but also financial grants for developing or starting a business.
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Using cryptocurrency as a means of payment. Another trend that will gain momentum in the near future. Today we are already seeing that a number of countries accept cryptocurrencies as payment for certain goods, such as real estate, software, jewelry and luxury goods, etc. I am confident that in the next five years, more and more users will be able to pay for goods and services with cryptocurrencies due to the development of cryptoprocessing technologies and the mass acceptance of credit cards with the cryptopayment function.
CN: Thanks for your answers! What plans does the Bitget crypto exchange have for the coming years?
G.C.: Our goal is to become one of the top three cryptocurrency exchanges in terms of trading volume within the next three to five years, and having more visits to our platform is definitely a good start. Based on the prediction and insights on the industry and market, we will align our development plan with these advancements. We recognize the importance of adherence to compliance within this dynamic industry. With global regulation of digital assets progressing rapidly, we actively seek out jurisdictions offering enhanced regulatory clarity for licenses and industry registrations. Simultaneously, as crypto adoption continues, we recognize significant potential and substantial growth opportunities within emerging markets such as CIS, LATAM, SEA, and Africa. Accordingly, we are intensifying our efforts and allocating additional resources to these burgeoning markets.
