China crypto market flourishing, despite a ban

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Bitcoin flourishing from a tree flower

To regulate, or not to regulate, that is the question. Governments, traders, hodlers, and other cryptocurrency enthusiasts all have their view on crypto market regulation. The most likely scenario will be that the financial authorities would take that burden. Governments around the globe have been very active in crypto regulation recently. The majority is in the monitoring process, some are drafting legal frameworks, and few are putting strict bans on anything associated with cryptocurrencies.

The forbidden word

China is among those who are waving with a red flag when somebody mentions something beginning with the word “crypto”. At first, they started with pressuring the crypto community. The first steps were blocking online forums where people discussed cryptocurrencies and banning cryptocurrency-related events. The second stage was blocking the information source, e.g. forbidding access to cryptocurrency news on WeChat. The last punch to China’s crypto market face came as an access restriction to 124 foreign crypto exchanges. In addition, the Government block all Alipay accounts that had any connection to cryptocurrency trades.

In order to save their business, some exchanges moved their servers outside of China, mostly to Hong Kong.

How to Trade Cryptocurrencies in China

However, as an individual, you cannot just trade crypto pretending to sip coffee in Knockbox Coffee in Hong Kong, while sitting in your Beijing apartment. Or can you? As China is not (yet) banning VPNs, local traders are using them to access any crypto exchanges and trade freely. They just need to find a way to purchase a Tether for Yuan, which can be done via exchanges that are offering tether-to-yuan pair. Then, you can transfer Yuan from bank-to-bank, or through third party payment networks, such as WeChat or AliPay. After getting Tether in their wallets, traders can start trading on foreign exchanges using VPNs.

China Supporting Blockchain Technology

Despite a crypto trading ban, China is supportive of blockchain technology. In Shenzhen, a restaurant has issued the first electronic tax authority approved invoice based on blockchain ecosystem. Furthermore, the Chinese city of Zhongshan will use blockchain technology to start tracking convicts on parole.

In addition, China-based cryptocurrency exchange ZB.com, set a foot on the European soil, by opening its office on Malta.

Source: Ethereum World News

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