Chinese traders are using virtual private networks (VPNs) to prevent government crackdown ongoing cryptocurrency trading, the local media outlet South China Morning Post (SCMP) said on September 8.
According to the SCMP, while referring to reports related to Beijing-affiliated, traders have started taking advantage of stablecoin Tether as a means to enter and exit the cryptocurrency markets.
With a VPN, two traders can use an exchange platform partially registered outside China as an intermediary to swap the fiat currency and vice versa.
The Beijing district last months stepped the general ban on the cryptocurrency exchanges, demanding locally at the local level to ban more than 120 websites of platforms in an effort to serve the domestic consumers.
Terence Tsang, CEO of exchange TideBit in Hong Kong and Taiwan, to told SCMP, “is “targeted at a batch of smaller exchanges, who claimed to be foreign institutions, but in fact, it is clamming in China that they have outsourced their operations.
Also, there is no successful scheme in operation to block VPNs, allowing smart traders to maintain access to the online resource. Chinese traders have pursued various means of crypto trading because in September 2017 the authorities had started cracking down on practice for the first time.
These have taken the form of using Hong Kong as a home from home for platforms while traders have resorted to peer-to-peer options, the Chinese government has still demanded to be closed.