The forbidden fruit is always sweet. The more the Chinese government tries to restrict the use and distribution of cryptocurrency assets in the country, the more creative Chinese traders become.
The organized and powerful onslaught of Chinese regulators at all levels on the cryptocurrency market is beginning to produce the first results, but not as much as the government would like.
According to the latest data, the total volume of cryptocurrency transactions in the country has decreased by 33 percent. But this does not mean that the number of Chinese crypto investors has decreased. The way to invest in cryptocurrency has simply changed. Now, to protect their crypto assets, traders use cold storage wallets, avoiding storing cryptocurrency on exchanges. Moreover, all actions have moved to private virtual networks (Virtual Private Networks). Chinese crypto traders are using P2P trading to circumvent encryption bans. Under the protection of virtual private networks, investors convert money into Tether (USDT) and send it as payment in exchange for crypto assets, especially Bitcoin (BTC). Another way to avoid control over cryptocurrency transactions is to use peer-to-peer trading, through the exchange of crypto assets directly between wallets, without the participation of intermediaries such as exchanges.
Crypto platforms are not far behind in ingenuity. One method used by exchanges is to switch domain names and locations to avoid detection, and this has worked flawlessly so far.
Additionally, crypto trading platforms that have been operating illegally throughout China are now moving their servers outside the country, making it nearly impossible for Chinese authorities to identify and monitor their activities.
China claims a ban on cryptocurrency transactions in the country is working well, but Chinese Crypto traders continue to invest in Bitcoin (BTC) as they use every possible method to bypass the restrictions.
Blocking crypto discussions on online forums, banning thematic events, restriction 124 foreign crypto platforms, blocking access to crypto news on WeChat, banning Alipay accounts that were suspected of conducting crypto transactions - all this did not stop true crypto enthusiasts..
The only thing that could really complicate direct cryptocurrency transactions is a VPN ban.
So far the government has not yet blocked these tools and traders are successfully using them.
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