According to a report in the South China Morning Post (SCMP) over the weekend (September 8th), crypto trading is alive and well in China, despite the ongoing ban imposed by the Chinese government. The report claims that trading continues to exist through the use of Virtual Private Networks (VPNs) to facilitate trades.
The COO of TideBit, Terenece Tsang, told SCMP, “The latest warning and potentially increased monitoring of foreign platforms is targeted at a batch of smaller exchanges that had claimed to be foreign entities, but are in fact operating in China claiming they have outsourced their operations to a Chinese company. Those exchanges whose website landing pages are in Chinese have drawn particular scrutiny by regulators.”
According to reports, would-be traders are getting around bans by first using a VPN, then converting their Chinese yuan to Tether, before then completing whichever trades they wish to. This is happening despite the redoubled efforts of the government to completely eradicate crypto trading and ICOs in the country. Search engines have had crypto-based sites blocked and even messaging apps have been affected, with crypto forums and chat groups also the subject of a crackdown.
The Chinese government have, unsurprisingly, received high-profile support from huge firms, Ant Financial and Tencent. Both have said that they will block transactions that are linked to crypto, although in practice this could be hard to do, as the issue of proof would need to be overcome. It is also probable that VPN usage will have a limited shelf life, as regulators will almost certainly move to restrict this avenue into trading.
Despite a gradual shift in favour of crypto in many countries in Asia, China remains steadfast. Indeed, it was only two weeks ago that the Chaoyang district in Beijing banned any kind of promotional activity in public places in the area.
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