Nearly a couple of years after the implementation of a crypto ban, evidence points out that the people living in China (the most populous country in the world) have not lost interest in this burgeoning industry. It is reported that Chinese citizens have discovered the methods to manipulate the system of the country to keep on utilizing digital as well as crypto assets.
Chinese Citizens Remain Steady in Crypto Trading Despite a Ban
Although the authorities in China have prohibited crypto-related activities within the country’s jurisdiction, the demand for crypto assets does not express any impact, as per the reports. The average per-month value of crypto assets entering the country decreased by 50% in the year after the ban imposed by Beijing.
However, the reports point out that the respective figure even now stands at a gigantic figure of $17B based on the data provided by Chainlysis (a prominent crypto intelligence platform). Evidence dealing with this consistent demand for crypto assets in China originates from diverse sources, taking into account the creditor profile of FTX as well as the individual statements made by the residents engaged in trading on crypto-related companies.
In addition to this, the industry players have also made demonstrations regarding the strategies through which the crypto ban could be bypassed. The crash of the well-known crypto exchange FTX turned out to be one of the top events that took place last year. The respective incident pushed the whole crypto industry into a continuous fall. As a result of that, the entire crypto market went through a huge loss of approximately $200B.
As per a report published by the news outlet Bloomberg, FTX’s bankruptcy proceedings indicate that eight percent of the consumer base belonging to the crypto exchange included Chinese people. Jack Ding is a lawyer that represents 6 of the respective Chinese creditors. They have a cumulative claim of almost $10M. Ding commented on this by saying that the trading of crypto assets is forbidden for the Chinese who live within or outside the jurisdiction.
Nevertheless, the lawyer emphasized that the enforcement of this ban is difficult. In Ding’s words, it often deals with compliance systems operating at exchanges and if they will scrutinize the passport holders from China. Keeping that in view, the compliance levels implemented by the respective exchanges are questionable as some investors from the country have disclosed intriguing information.
Crypto Users in the Country Utilize Top Crypto Exchanges for Trading
4 of the respective investors asserted that they have traded on the top crypto exchange Binance. Nevertheless, one of them is considered to have utilized the other exchange called OKX following the implementation of the crypto ban. Even though the respective transfers might have been carried out with the use of a virtual private network (VPN), all the investors claimed that they have accomplished the registration procedure of the exchange.
The investors said that they did so by utilizing a Chinese identification. Apart from that, another sign of the Chinese crypto ban’s vulnerability is related to the reports that the Huobi exchange of China once provided access to the country’s citizens.
At the moment, no remarks have been provided by the People’s Bank of China on the evidence that the residents are continuously trading crypto. In the meantime, several speculate that a reversal of the decision might be witnessed in the case of Beijing for the crypto ban.
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