Cryptocurrency

Bitcoin

when

Billion

<p>The post <a href="https://coinpedia.org/news/no-full-ban-to-crypto-in-china-90-billion-trade-on-binance-tells-a-new-tale/">China Crypto Ban Breached? $90 Billion Traded Despite Restrictions</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>In a twist that challenges common beliefs, recent reports suggest that China’s ban on cryptocurrencies might not be as absolute as widely thought. Contrary to popular belief, there seems to be a buzzing cryptocurrency trade happening within the country.</p> 
<p>Binance, the world’s top crypto exchange, is said to have facilitated an astounding $90 billion in Chinese crypto trade within just one month. Shocking, right? Wrap your head around the details below.</p> 
<h2 class="wp-block-heading" id="h-china-s-cryptocurrency-policies">China’s Cryptocurrency Policies</h2> 
<p>A closer look at <a href="https://www.dehenglaw.com/CN/tansuocontent/0008/024463/7.aspx?MID=0902#:~:text=%E7%9B%AE%E5%89%8D%EF%BC%8C%E6%88%91%E5%9B%BD%E5%B9%B6%E6%97%A0%E6%B3%95%E5%BE%8B,%E8%99%9A%E6%8B%9F%E8%B4%A7%E5%B8%81%E7%9B%B8%E5%85%B3%E4%B8%9A%E5%8A%A1%E6%B4%BB%E5%8A%A8%E3%80%82">China’s stance</a> on cryptocurrency reveals a regulatory landscape more intricate than commonly thought. While crackdowns have occurred, such as the exclusion of financial institutions from Bitcoin in 2013 and the 2017 ban on initial coin offerings (ICOs), the rules are not as black and white.</p> 
<p>Virtual currency exchanges were prohibited from operating openly in China, leading to a significant <a href="https://coinpedia.org/news/chinas-last-goodbye-to-bitcoin/">crackdown in 2021</a>, halting Bitcoin on the grounds that it’s not considered “real money.” Despite these measures, people continue to hold cryptocurrency, and peer-to-peer trading persists.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/china-confronts-the-crypto-corruption-wave-a-new-era-of-digital-bribery/">Can China Finally Stop Crypto Corruption &amp; Digital Bribery? Here’s the Plan</a></p> 
<h2 class="wp-block-heading" id="h-cracks-and-loopholes">Cracks and Loopholes</h2> 
<p>Despite a crackdown on domestic <a href="https://coinpedia.org/guest-post/china-affect-the-entire-cryptocurrency-marketplace/">crypto mining in 2021</a>, China’s restrictions have left noticeable gaps. The rules haven’t prevented people from holding cryptocurrency or engaging in peer-to-peer trading. </p> 
<p>Interestingly, some people found ways around the restrictions. They continued using accounts they had opened on overseas exchanges, sometimes using a VPN and sometimes without it.&nbsp;</p> 
<p>They also kept trading directly using social apps like WeChat or Telegram. Some even went a step further by making companies outside China through others and then using those companies to complete the institutional know-your-customer (KYC) identification on crypto exchanges.</p> 
<h2 class="wp-block-heading" id="h-china-s-dual-dance">China’s Dual Dance</h2> 
<p>China’s cautious crypto approach stems from concerns about potential misuse for evading capital controls. However, the country has demonstrated a consistent interest in blockchain technology, <a href="https://coinpedia.org/news/chinas-web3-white-paper-fuels-crypto-frenzy-in-hong-kong-cz-reacts/">issuing a Web3 white paper</a> and exploring a central bank digital currency.&nbsp;</p> 
<p>This dual approach hints at China leaving the door slightly ajar for crypto, while effectively managing associated risks.</p> 
<p>Read More: <a href="https://coinpedia.org/news/justin-sun-predicts-china-to-join-the-crypto-etf-race/">Justin Sun Predicts China To Join The Crypto ETF Race</a></p> 
<h2 class="wp-block-heading" id="h-hong-kong-s-role">Hong Kong’s Role</h2> 
<p>Operating under the “one country, two systems” model, <a href="https://coinpedia.org/news/hong-kongs-vsfg-eyes-q2-2024-for-spot-ethereum-etf-launch/">Hong Kong</a> emerges as a digital asset hub in Asia. Its favorable stance toward crypto, coupled with approval from Beijing, enables China to maintain a strategic foothold in the crypto sphere while managing risks effectively.</p> 
<p>In summary, labeling China’s crypto policy as a straightforward ban oversimplifies a more nuanced reality. It seems China aims to control and regulate crypto activities rather than eliminate them entirely.</p>

China Crypto Ban Breached? $90 Billion Traded Despite Restrictions

Table of Contents

CoinPedia News

Other articles published on Feb 6, 2024

Genesis bankruptcy plan overpays customer claims, DCG says

Grayscale CEO calls for regulatory approval on spot Bitcoin ETF options

British Columbia Court upholds moratorium on crypto mining projects in Canadian province

Chainlink Rockets 35%: What’s Driving This Surge?

Is Kelexo (KLXO) Crafting the Next Chapter in Crypto? What Part do Avalanche (AVAX) and ORDI (ORD...

Binance Co-founder Unveils $5 Million Reward for Reporting Insider Trading

Join our free newsletter for daily crypto updates!