Despite increasing state regulations about the year-long cryptocurrency ban in China, investors are still sometimes finding techniques for finding involved with the forex market. On August 23rd, the Shanghai Securities Times reported that Chinese authorities are increasing their regulation by preventing investors’ entry to 124 non-native exchanges. Excellent is as well as Beijing’s attempt to ban all cryptocurrency exchanges registered in China to defend their citizens with the volatile market.
However, neither exchanges or Chinese investors have it. Reported by the South China Morning Post, Chinese trading platforms are moving servers from the mainland, registering properties in other countries, and changing their domains to skirt the ban.
Since cryptocurrencies are decentralized assets, it proves near impossible to close access to those considering acquiring them. Most Chinese investors make the most of P2P services and VPNs to gain access to crypto, which governments will have a hard time preventing.
Interestingly, some traders choose Tether, a stablecoin currently ranked eighth by market cap, to prevent regulation at the same time. Tether is backed through U.S. dollar and used as a transfer of value. Investors convert their fiat currency to Tether to acquire different currencies individually distinct.
The combination of Tether, VPNs, P2P trading and foreign exchanges cause it to near impossible to your Chinese government to obtain involved. While authorities contain the power to closed down VPNs, the process is long and arduous.
A Future For Crypto?
Terence Tsang, CEO of TideBit, which enables up several exchanges in Taiwan and Hong Kong shared his applying for grants the news:
“The latest warning and potentially increased monitoring of foreign platforms concentrates at a batch of smaller exchanges that have claimed to always be foreign entities but are in fact operating in China claiming they have outsourced their operations to your Chinese company. Those exchanges whose website squeeze pages are in Chinese have drawn particular scrutiny by regulators.”
According towards Shanghai Securities Times, individuals government is collaborating with third-party payment groups to close suspect transactions. Chinese conglomerates for instance Tencent and Ant Official have stated their wish to prevent crypto trading on services on top of that, but it’s unclear the amount of effort is determined towards the banning.