Cryptocurrency and blockchain technology have attracted much interest and speculation in Mongolia in recent years. Here are some of the key components and stakeholders of the crypto industry.

Crypto asset exchanges

More than 20 cryptocurrency exchanges operated in Mongolia at the peak of the crypto market in 2021. However, a recent regulatory reform reduced that number to 12. These exchanges offer 24/7 trading and immediacy, and list 41 domestic and 170 international coins and tokens. The average daily trading volume across all exchanges is ₮410 million ($1.5 million).

Cryptocurrencies

There has been a trend of issuing speculative coins and tokens among Mongolians. The market value of cryptocurrencies has exceeded ₮380 billion, and cryptocurrency exchanges have reached 850,000 customers. In the past 24 hours, IHC (IHC) was the most traded coin, falling 10.3%. Other coins such as TRD (TRD) and SPC (SPC) were also actively traded.

Regulatory environment

The Ministry of Digital Development and Communications, the Financial Regulatory Commission (FRC), and Mongolian banks are leading the regulation of the cryptocurrency market. The parliament approved the Virtual Asset Service Providers (VASPs) Act, and the FRC has started officially registering the exchanges.

Metaverse

The global metaverse market is expected to grow from $65.5 billion in 2022 to $936.6 billion by 2030. In Mongolia, social networks like Guyuk and Metaland are using the metaverse to create virtual worlds where people can socialize, shop and play. This market is poised for significant growth in the coming years.

In a nutshell

The crypto industry is a small yet much adored part of the Mongolian economy. It has seen significant developments compared with a few years ago. These include the passage of a law on VASPs, the establishment of numerous crypto asset exchanges, and the development of information channels about the market. With the right support and regulations, the crypto industry poses a leapfrogging opportunity on governance, finance and economic policies for Mongolia.