thecoinrepublic.com
China has been fighting against the crypto industry in the country for some time now. Beijing has recently blocked crypto investments in the country altogether, leaving traders with almost no option to trade cryptocurrencies.
However, the local population of the country is still very much interested in the crypto trading market. Remaining Chinese crypto traders are looking for creative ways to continue their crypto trading as usual, and there might be some options for them.
After Beijing announced its latest restrictions on crypto trading, more and more crypto exchanges have announced their plans to stop receiving clients from China. As for the existing users, they announced to be working on phasing them out.
However, many investors in China still continue their efforts to somehow register on crypto exchanges, trying to bypass the Know Your Customer, KYC, checks. If done, this could allow them to trade crypto as corporations.
Reports about it were made by local media in Beijing. This is opening up a lot of opportunities for business intermediaries in the country. Companies such as Taobao, for example, have taken a chance to provide intermediary services to these people.
In fact, one of the representatives of one vendor in the country even announced that they had clients successfully investing in crypto using overseas company registration.
There are several jurisdictions where the local traders are being registered. One of the vendors said that they were registering the traders in the British Virgin Islands, Marshall Islands, and the UK with fees ranging from $280 to $1,200. It was announced that the registration process could take up to 10 working days depending on the location.
China’s Crypto Crackdown
On September 24, a joint statement of 10 government authorities of China was released. Among the authorities was the People’s Bank of China. The notice was aimed at clarifying the crypto trading rules in the country, claiming that crypto is not a legal tender in the country.
Furthermore, the statement said that crypto transactions in the country were illegal, including transactions with offshore exchanges. The authorities announced that any Chinese employee of offshore crypto exchanges would be investigated and prosecuted.
Having one of the biggest crypto markets, China’s step to crack down on cryptocurrencies has been devastating for the local market. It also had a huge influence on the global crypto trading market, where the price of bitcoin, the largest cryptocurrency, fell by over $2000 after the announcement.
This is just another step of the Chinese authorities and is a part of the national crackdown on the crypto industry. The Chinese government has said that crypto is a very volatile investment and there are many concerns about it being used for money laundering activities.
The central bank of the country also said that crypto can be very dangerous for the safety of people’s assets.
But, the crypto restrictions in the country are not new. The massive crypto crackdown in China started back in 2017 when the country shut down local crypto exchanges. In addition, the country has officially banned cryptocurrency in 2019. Additional steps were taken in 2021 when the country banned crypto mining.
But, while many steps have been taken, cryptocurrencies were still traded in the country, particularly with offshore exchanges. Many local traders were also using automated trading robots to trade cryptocurrencies in the country. You could easily find the best bitcoin bot trader in China as there were so many people who traded cryptos this way.
However, although automated crypto trading, as well as general crypto trading, was so popular in the country, the recent steps of the Chinese government seem to have been stricter than the previous ones as it saw the majority of the crypto companies in the country flee.
What Does the Recent Ban Mean?
According to the recent steps taken by China, it is now illegal in the country to trade virtual currencies, buy or sell the cryptos on local, as well as on international exchanges, and provide information about the pricing services and technical support for cryptos is illegal in the country.
In addition, the country said that they are ready to start investigation and prosecution on each and every single one of the cases if needed. The country says that they are hoping to combine offline and online investigations to identify and investigate crypto trading activities in the country and make sure that nothing illegal is being done.
In addition to all of these, no financial institution is allowed to provide services for cryptocurrencies.
The recent steps taken by the Chinese government show how much the country wants to get rid of the crypto industry. Although China has been one of the leading countries in terms of crypto trading as well as mining things have changed drastically over the past few years.
But, it is hard to imagine that local traders in the country, especially those who are truly interested in the crypto trading market, will give up on this opportunity so easily.
For some people in the country, crypto trading has been one of the main sources of income and although there have been numerous bans on crypto activities, they have still managed to find a way out.
Using different types of vendors to have access to the crypto trading services around the world is just one way that the local traders seem to have already found to continue making money through cryptos. But, this might not be the only thing that can be done in this regard.