Why is the price of BTC (and any other crypto) always higher in Asian countries?

Vishnu.Reang

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Quote from: Vishnu.Reang on September 28, 2020, 08:13:59 AM

I have also noticed this. In Localbitcoins India, if you want to sell Bitcoin, then there are several buyers out there who would pay prices which are very close to the market rates. On the other hand, if you want to purchase coins, you may be forced to pay a markup of up to 5% (I am considering only those traders with good reputation). The same thing can be noticed in other peer-to-peer exchanges as well, such as Localcryptos.

Have you noticed this only in India or in other countries too?

I don't know the case with other countries, because I have only traded for INR. Although it is possible to sell Bitcoins to the international traders, I haven't done that. There are too many issues. They will send the money either to my credit card, or by Western Union. There will be all sort of enquiries from the tax department. But all that said, I don't think that the situation is any different in the other Asian countries.

DarkDays

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The most important reason behind this price difference is the stringent regulations in some of the countries. For example, Bangladesh has one of the highest price difference because crypto is banned there. India was almost like that for a while with their banking ban. China, the same, Burma the same. So it creates a lot of ground for the old middlemen to come in and charge an extra premium to exchange the local currency with some digital e-currency that can then be traded for any crypto.

Besides this, even large exchanges operating out of Asian countries have to tackle regulatory issues which just makes transferring fiat out of those countries a living hell.

Why they do it? protectionism. That is a topic for another thread though.

Pito001

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It all depends from volumes & demand. If there less sellers for china pairs then they can set higher prices

mezzaluna

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Quote from: gentleman2019 on September 21, 2020, 06:24:09 PM

Its consistently higher that what the normal currency exchange rate would suggest in Asian countries.

For example if you multiply the USD rate of 1 BTC with the CNY rate, its 1 BTC = CNY 73,600, but exchanges there have it around CNY 75,500.

In other countries in Asia and South America also BTC is more expensive to buy in non-USD currencies than in USD.

Why is this the case?

Its surely based on the economic status of the country and sometimes those rates are lowered so that people that render that service can gain profit. Its not easy for them to handle that business since most of their income will come from Cryptocurrency.

Vishnu.Reang

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I have also noticed this. In Localbitcoins India, if you want to sell Bitcoin, then there are several buyers out there who would pay prices which are very close to the market rates. On the other hand, if you want to purchase coins, you may be forced to pay a markup of up to 5% (I am considering only those traders with good reputation). The same thing can be noticed in other peer-to-peer exchanges as well, such as Localcryptos.

Assface16678

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I don't think it's high in my country because they are the same thing which is on the actual price of the coin BTC/USD.

Quote from: Sadlife on September 27, 2020, 05:16:28 PM

I'am from a asian country and the value is the same here in USD. Maybe, the price is set to high amount because thw custodial wallet abuse it because it has no standard law currently. What you should do is buy, low cheap Bitcoin from other alternatives then resell it there. So its some of arbitrage trading, and you gain profit from it, instead of treating it as a bad luck.

The transaction fee on my country is too high because of the centralized wallet we are using they can easily make some changes with this. Also, they have a large amount of transaction and does not have a fair on buy and selling of the coin.

Quote from: Lorence.xD on September 28, 2020, 12:36:21 AM

Quote from: Sadlife on September 27, 2020, 05:16:28 PM

I'am from a asian country and the value is the same here in USD. Maybe, the price is set to high amount because thw custodial wallet abuse it because it has no standard law currently. What you should do is buy, low cheap Bitcoin from other alternatives then resell it there. So its some of arbitrage trading, and you gain profit from it, instead of treating it as a bad luck.

It definitely is the wallets, in my country there is a monopoly in this and the government does not have a clear stance whether cryptocurrency in general is a bad thing. Maybe if there is an introduced competition they can atleast do something to keep their customer base steady.

They are just dominating the use of the cryptocurrency. Also sometimes they don't have enough supporting with the use of it.

abuya55

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Price is determined by the market in which it trades: by means of supply and demand. The price may vary from one exchange to another one.

Lorence.xD

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Quote from: Sadlife on September 27, 2020, 05:16:28 PM

I'am from a asian country and the value is the same here in USD. Maybe, the price is set to high amount because thw custodial wallet abuse it because it has no standard law currently. What you should do is buy, low cheap Bitcoin from other alternatives then resell it there. So its some of arbitrage trading, and you gain profit from it, instead of treating it as a bad luck.

It definitely is the wallets, in my country there is a monopoly in this and the government does not have a clear stance whether cryptocurrency in general is a bad thing. Maybe if there is an introduced competition they can atleast do something to keep their customer base steady.

Sadlife

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I'am from a asian country and the value is the same here in USD. Maybe, the price is set to high amount because thw custodial wallet abuse it because it has no standard law currently. What you should do is buy, low cheap Bitcoin from other alternatives then resell it there. So its some of arbitrage trading, and you gain profit from it, instead of treating it as a bad luck.

AmoreJaz

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Quote from: ReiMomo on September 27, 2020, 02:55:06 PM

It's obvious because the Asian country is the most lower value currency compared to the dollar since bitcoin is based on the dollar.

The value of a country's currency was determined by their economic condition, economic growth, foreign trade, and high inflation which is commonly indicator of the currency value.

Therfore, bitcoin in other country like Asian is different from the US if you are there. So now, you can figure out which bitcoin price of each countries are totally different.

and to add the fact that a lot of local exchanges are taking advantage of their clients. because if you want to convert it to your own local fiat, you need to use their platform. so whatever they are offering as the buy/sell rate of btc, you have no choice but use them. though they are offering no fees, but their rate is higher when you are buying, and much lower when you are selling.
as youve mentioned also, the conversion rate of your local fiat vs dollar affects this price.

Ryker1

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Quote from: Asuspawer09 on September 27, 2020, 03:52:19 PM

I guess it is because compared to the USA bitcoin is not used in some Asian countries a lot making the price a bit higher than the countries that are already exposed to bitcoin technology.

And maybe because the government does not really support this kind of technology yet just my opinion here in my country, they do not really hate what it is just not really support this yet so companies that want to bring this technology to the country would tend to pay high tax one thing is because it is maybe a poor country. So the tax was just high that the company needed to put the market price of bitcoin higher when converting.

So that the company is going to make its profit and at the same time it would be controlled in the country's fiat currency value.

Well, this is completely irrelevant answer among those replies above. Government and the price does not have a correlation.
The main reason is, bitcoin value was based on USD and we have USDT that back by USD value, it should be 1:1 rate. Now, --let us compared Asian country national currency to the USD. For example, the country Philippines where I am live tat part of Asian. The current value as of now is 1 USD= 48.48 Peso. 1 USD is a tiny amount for them but for us, you can buy 1 kilo of rice that enough for you to eat in a day. That is the rellevance the value of bitcoin into Asian countries.

Asuspawer09

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Quote from: gentleman2019 on September 21, 2020, 06:24:09 PM

Its consistently higher that what the normal currency exchange rate would suggest in Asian countries.

For example if you multiply the USD rate of 1 BTC with the CNY rate, its 1 BTC = CNY 73,600, but exchanges there have it around CNY 75,500.

In other countries in Asia and South America also BTC is more expensive to buy in non-USD currencies than in USD.

Why is this the case?

I guess it is because compared to the USA bitcoin is not used in some Asian countries a lot making the price a bit higher than the countries that are already exposed to bitcoin technology.

And maybe because the government does not really support this kind of technology yet just my opinion here in my country, they do not really hate what it is just not really support this yet so companies that want to bring this technology to the country would tend to pay high tax one thing is because it is maybe a poor country. So the tax was just high that the company needed to put the market price of bitcoin higher when converting.

So that the company is going to make its profit and at the same time it would be controlled in the country's fiat currency value.

ReiMomo

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It's obvious because the Asian country is the most lower value currency compared to the dollar since bitcoin is based on the dollar.

The value of a country's currency was determined by their economic condition, economic growth, foreign trade, and high inflation which is commonly indicator of the currency value.

Therfore, bitcoin in other country like Asian is different from the US if you are there. So now, you can figure out which bitcoin price of each countries are totally different.

pixie85

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Quote from: CryptopreneurBrainboss on September 26, 2020, 06:53:49 AM

Quote from: pixie85 on September 24, 2020, 02:07:47 PM

It's not always higher.

It's not a big difference just 6 USD which isn't even 1%.
Small exchanges are more volatile so they react violently to every pump.

Funny, I thought the example you'll be giving based on your opening statement will be a scenario where that of Binance would be more costly than your local exchange. I have tried but seems that's unlikely to be the case as at every point I look at the market in my country, my local exchange always trade above other western exchange and it got me wondering what are they trying to achieve.

Initially you would think in order to win back the customers already patronizing foreign exchange that of the local exchange would be less costly and very user friendly to use but that's not the case. Which is probably why Binance and the other top exchanges are more popular than our local exchange even in the country.

The only time, I have witnessed what you tried highlighting was through peer2peer exchange. But when I encounter such offers it gives me a second thought of potential scam attempts.

What I was trying to say is there can be small differences but as long as it's 1% or less it's the same as no difference.

It won't allow you to profit from arbitrage, it won't really be worth it to send your coins there to exchange to a foreign currency and back to your bank.

Many EU and US exchanges have larger price differences within the same fiat currency like USD or EUR.

CryptopreneurBrainboss

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Quote from: pixie85 on September 24, 2020, 02:07:47 PM

It's not always higher.

It's not a big difference just 6 USD which isn't even 1%.
Small exchanges are more volatile so they react violently to every pump.

Funny, I thought the example you'll be giving based on your opening statement will be a scenario where that of Binance would be more costly than your local exchange. I have tried but seems that's unlikely to be the case as at every point I look at the market in my country, my local exchange always trade above other western exchange and it got me wondering what are they trying to achieve.

Initially you would think in order to win back the customers already patronizing foreign exchange that of the local exchange would be less costly and very user friendly to use but that's not the case. Which is probably why Binance and the other top exchanges are more popular than our local exchange even in the country.

The only time, I have witnessed what you tried highlighting was through peer2peer exchange. But when I encounter such offers it gives me a second thought of potential scam attempts.

hd49728

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Each nation has local reasons for difference (higher) price in Asian countries. Laws, limited access to good exchanges, limited experience in crypto exchanges. Without knowledge and experience, people often invest from advice (group, community, relatives). And they accept any price to make entries when they get investment advice or command from leaders, influencers, KOLs.

Western nation citizens have better knowledge and experience in crypto investment and they less likely accept any price to do entries.

https://www.bestchange.com/ Bestchange is a good exchange to give difference in entry price. Check their ann thread for details and trading guides: Forget about exchanger search! Use BestChange!

worldofcoins

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Quote from: gentleman2019 on September 21, 2020, 06:24:09 PM

Its consistently higher that what the normal currency exchange rate would suggest in Asian countries.

For example if you multiply the USD rate of 1 BTC with the CNY rate, its 1 BTC = CNY 73,600, but exchanges there have it around CNY 75,500.

In other countries in Asia and South America also BTC is more expensive to buy in non-USD currencies than in USD.

Why is this the case?

Is it accurate to say that you are discussing the cost of US Dollars?.
It doesn't make a difference, Since expanding the cost of USD makes everything costly.
In my nation USD cost is higher than other nations and each stuff in my nation is costly. So it doesn't matter if the price is higher or not you'll cost higher when you buy things

pixie85

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It's not always higher.

I've compared aBinance to a Japanese exchange Coincheck and when Binance was trading for 10618 USD Coincheck was at 1119900 Yen which is currently worth 10624.
Prices from the time of writing this post.

It's not a big difference just 6 USD which isn't even 1%.
Small exchanges are more volatile so they react violently to every pump.

Shimmiry

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Maybe it is just a coincidence when you see those prices. There's no fixed amount of bitcoin in any area in this world. But prices really varies on different exchanges, depending on the traders on that platform, they can set their preferred buy/sell of bitcoin. Plus, the fee of the exchange is added to you when you buy/sell bitcoin on any pairs. Exchanges has different trading fees, you should be aware of that.

fiulpro

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First of all it's the Demand secondly in many Asian countries it's actually not so Supported by the government , in the Case of India , the price of Bitcoins is a little higher on the exchange rate , which is due to :
- Many banks being against Bitcoins
- Harder to own cryptocurrencies because in many cases bank will freeze the account if you are dealing in cryptocurrencies.
-High number of users on the most popular exchange thus most of the time they support instant buying/selling which might change the price a little.
- The charges taken by the particular exchange also increases the price .

Topic: Why is the price of BTC (and any other crypto) always higher in Asian countries? (Read 721 times)