Nearly two years after cryptocurrency was banned in China, evidence shows that citizens of the world’s most populous country have found ways to maneuver the system as they continue to transact with cryptocurrencies and other digital assets.
Despite China’s ban on cryptocurrency operations, demand for these assets in the region appears to have remained unaffected, as is the case. mentioned By bloomberg.
While the average monthly value of cryptocurrency flows into China fell by half in the year following the Beijing ban, Bloomberg reported that figure still came to $17 billion based on data from crypto intelligence firm, Chainalysis.
Evidence of this continued Chinese demand for digital tokens arises from various sources, including FTX’s creditor profile and personal data from Chinese citizens who trade on crypto platforms.
Moreover, there were also demonstrations by industry players on strategies to bypass cryptocurrency bans.
Chinese crypto bans are ineffective, and they face compliance issues
Total Crypto Market Cap valued at $1.155 Trillion | Source: TOTAL chart on Tradingview.com
The collapse of the FTX exchange stands as one of the biggest crypto events of the past year, plunging the market into a downward spiral that resulted in a total loss of value. $200 billion.
According to a Bloomberg report, FTX’s bankruptcy proceedings show that 8% of the defunct exchange’s customer base were Chinese citizens.
“In theory, cryptocurrency trading is prohibited for Chinese at home and abroad, but it is difficult to implement, said Jack Ding, a lawyer representing six of these Chinese creditors with total claims of $10 million.
“It often has to do with compliance regulations on exchanges and whether Chinese passport holders will be liquidated,” he added.
However, one can already debate the compliance levels of these exchanges as interviews with some Chinese investors revealed interesting information.
Four of these investors claim to have traded on the popular Binance exchange, while one individual is said to have used the OKX exchange after the crypto ban was imposed.
Although these transactions may have been carried out using a virtual private network, these investors all claimed to have completed the exchange’s registration process using a Chinese ID.
In addition, another indication of the glaring loopholes in China’s cryptocurrency ban comes reports Popular cryptocurrency exchange Huobi once offered citizens of the Asian country the option to access its platform, however, with digital identities as Dominican citizens.
Could unblocking be on the table?
For now, the People’s Bank of China has not made any comments on the evidence that Chinese citizens continue to trade cryptocurrencies.
Meanwhile, many speculate that Beijing may be considering reversing the cryptocurrency ban.
These discussions are primarily driven by the blatant crypto-friendly stance displayed by the Special Administrative Region of China, Hong Kong, a move many believe is quietly backed by mainland China.
Moreover, the emergence of more tokens compliant with Chinese regulations, such as Conflux (CFX), He is likely to open the door for dialogue and urge the government to ease its restrictions.
No way, if the crypto ban is lifted in China, it will lead to an exponential rise in the levels of cryptocurrency adoption.
– Featured Canva image, chart from Tradingview