The Chinese government has recently reported that its crackdown on cryptocurrency has been successful because claimed that bitcoin (BTC) to Chinese yuan(CNY) business is now less than 1% of global trade volume.
However, a close examination shows that local digital currency traders have found different ways to bypass the government imposed restriction on crypto.
As a cover, large payment processors such as Alipay china have also tried to stop activity related to crypto in China by banning accounts including in over the counter(OTC)Nbitcoin trading.
However, local cryptocurrency exchanges and many others located abroad have found ways to be accessible to Chinese merchants.
124 Crypto Exchanges Still Available
According to South China Morning Post (SCMP) and state China owned Shanghai Securities times, CCD regulations, the country’s regulators identified 124 digital asset exchange, which is providing crypto business service to “illegally” Chinese residents. To bypass government-led crackdown, the exchange is often revising their domain names.
Commenting on the challenge Chinese regulators are facing because they try to restrict the crypto trade, Hong Kong-based exchange TideBit’s COO Terrence Tsang revealed.
Crypto Trading Volume Drops 33%
In response to the increases in its investigation of the illegal trade of Chinese government, the crypto trading volume decreased by 33% in the country. possibly, local traders shifted their crypto properties into cloud storage to prevent possible risks of losing their money in case of exchange closure.
As covered, Chinese crypto investors had already been engaging in peer-to-peer (P2P) trading when the nation’s government moved toward banning digital currency exchanges and initial coin offerings (ICOs) last year. These types of transactions usually involve transferring cryptocurrencies from one user wallet to another, without requiring a centralized exchange.