Chinese Crypto Traders Continue To Invest In Bitcoin (BTC) Despite Cryptocurrency Ban in China
Even though the Chinese government stated that the cryptocurrency ban in China is successful, the facts show otherwise. According to recent reports, Chinese crypto traders continue to invest in Bitcoin (BTC) as they use any possible method to avoid the regulations.
The Shanghai Securities Times, reported last month that China’s authorities are taking measures to shut down illegal cryptocurrency exchange platforms, while they blocked Chinese citizens from accessing more than 120 foreign exchanges that provided services in China, among other nations.
Despite this awkward situation for them, the cryptocurrency exchange platforms find new ways to bypass the system and offer their crypto trading services to the Chinese crypto traders. One of the methods the exchanges use is to switch domain names and locations to avoid detection, and, so far, this one functioned flawlessly for the cryptocurrency exchange platforms.
Also, the crypto trading platforms that operated illegally across China now moved their servers outside the country, making it virtually impossible for the Chinese authorities to detect and monitor their activities.
China claims cryptocurrency ban is successful, but the Chinese crypto traders continue to invest in Bitcoin (BTC)
A report published in July by the Central Bank of China stated that the Chinese cryptocurrency ban was successful. Consequently to the ban, the Chinese government moved on to shut down as many ICOs projects, cryptocurrency exchange platforms, and crypto-related entities as they could.
“The latest warning and potentially increased monitoring of foreign platforms are targeted at a batch of smaller exchanges that had claimed to be foreign entities but are in fact operating in China claiming they have outsourced their operations to a Chinese company. Those exchanges whose website landing pages are in Chinese have drawn particular scrutiny by regulators,” said Terence Tsang from the TideBit centralized cryptocurrency exchange based in Hong Kong and Taiwan.
Besides the tricks the cryptocurrency exchange platforms employed, Chinese crypto traders use P2P trading to bypass the cryptocurrency ban. Under the protection of VPNs, Chinese traders convert fiat money to Tether (USDT) and send that as payment in exchange for cryptocurrencies, especially Bitcoin (BTC).
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.