One of the most hostile countries for cryptocurrencies is China. It was the first country to officially ban inside crypto trade but it looks like the Chinese government is not stopping here. According to an article in South China Morning Post, the authorities are willing to outlaw international crypto trade as well.
One of the most hostile countries for cryptocurrencies is China. It was the first country to officially ban inside crypto trade but it looks like the Chinese government is not stopping here. According to an article in South China Morning Post, the authorities are willing to outlaw international crypto trade as well. The text suggests that the days of offshore platforms are numbered. Simply said, the Chinese government does not want its citizens to trade with virtual currencies.
In addition, citizens would no longer be able to participate in initial coin offerings held abroad. Last year the authorities banned exchanges from settling transactions in the territory of China. The answer from the injured online market was to simply relocate or to service foreign traders. In previous reports, there were statements that cryptocurrency mining is soon to be prohibited as well.
Chinese investors who wished to keep on trading find a solution by using virtual private networks (VPNs). With the use of VPNs, Chinese citizens can easily bypass getaways controlled by the state and continue trading on foreign markets in Hong Kong or South Korea. Binance, which is one of the largest cryptocurrency exchanges in the world is actually based in Hong-Kong and is reportedly having 200,000 new accounts opened every hour.
The article in South Morning Post states that despite last year’s ban people are still participating in crypto trade and this makes them vulnerable to scam and pyramid selling. China’s regulations are happening just at the same time when the cryptocurrency market is experiencing a severe crash. But China is not the only country that is tightening up measures. South Korea and Japan are also imposing more strict regulations after recent coin thefts from several exchanges.
Undoubtedly, the events in Far East Asia have an impact on the market but it is not strictly negative. If China is to ban crypto trade entirely, the Japanese and South Korea exchanges are more likely to benefit. Every Chinese trader who wants to take advantage of the current low prices is surely relocating to exchanges in South Korea and Japan.