2024

Strong

when

Billion

<p>As per <a href="https://www.cointribune.com/en/23-7-billion-in-2024-the-black-market-for-crypto-is-thriving-in-china/" rel="nofollow noopener" target="_blank">crypto reports</a>, the Chinese crypto black market ‘suffers’ from a severe regulatory crackdown; nonetheless, the underground trade in the country has grown to $23.7 billion in 2024. This tremendous growth, largely propelled through OTC desks and DEs, underlines the zeal of Chinese investors to curb all odds in the pursuit of engaging in the global crypto market.</p> 
<h2 id="strong-china-s-crypto-black-market-thrives-despite-heavy-crackdown-strong"><strong>China’s Crypto Black Market Thrives Despite Heavy Crackdown</strong></h2> 
<p>The Chinese government’s clampdown on cryptocurrency, which began in earnest in 2021, had an overbearing impact, causing ripples to spread across the international crypto frontier. However, data from different financial regulators prove that the clandestine BTC sale is not only alive but also thriving. As the 2024 market volume can be seen, the separate sales of OTC desks went past $23.739 billion.</p> 
<figure id="attachment_45765" aria-describedby="caption-attachment-45765" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" loading="lazy" decoding="async" class=" wp-image-45765" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/09/Bitcoin-Below-50000-as-Crypto-Market-Loses-620B-in-Major-Sell-Off.webp" alt="Crypto Black Market " width="1436" height="808" title="China’s Crypto Black Market Surges to $23.7 Billion in 2024 Despite Crackdown 33">
 <figcaption id="caption-attachment-45765" class="wp-caption-text">
  Crypto Black Market
 </figcaption>
</figure> 
<p><a href="https://demo.chainalysis.com/demo/?utm_source=google&amp;utm_medium=cpc&amp;utm_campaign=dra-search-brand&amp;utm_content=get-demo&amp;utm_category=emea&amp;utm_term=chainalysis&amp;qgad=702159167233&amp;qgterm=chainalysis&amp;utm_source=google&amp;utm_medium=cpc&amp;utm_campaign={campaign}&amp;utm_term=chainalysis&amp;utm_content=702159167233&amp;gad_source=1&amp;gclid=Cj0KCQjwgL-3BhDnARIsAL6KZ6-HDcgtyDmwxnr3X1XDtLLrkOiXDiHH2g40KOhlf25OmKl4PtaRn7oaAtucEALw_wcB" rel="nofollow noopener" target="_blank">Chainalysis</a> stated in its reports that “The local buyers and sellers anonymously traded cryptocurrencies in China in the second quarter 2024 three times of that recorded in the second quarter 2021.” This increase comes alongside disclosed penalties that include 10 years in prison for anyone involved in cryptocurrency transactions as Beijing carries on with the campaign against decentralised finance.</p> 
<h2 id="strong-why-chinese-investors-continue-to-trade-crypto-strong"><strong>Why Chinese Investors Continue to Trade Crypto</strong></h2> 
<p>The remarkable resilience of China’s underground crypto market can be attributed to several key factors:</p> 
<p>1.<strong> Strong Demand for Digital Assets:</strong> Despite this, various Chinese investors still believe that cryptocurrency offers ways to diversify their investments. Where people still fear the old enemies like inflation and have limited choices in terms of investment, crypto is a chance to protect and increase wealth.</p> 
<p>2. <strong>Circumventing Government Control:</strong> OTC desks provide an opportunity for digital asset transactions that do not directly involve platforms as exchanges. Such desks, in addition to decentralizing the platforms, provide investors with means to avoid government monitoring. According to one unnamed financial analyst, “OTC desks give the freedom that many traders require to remain unseen.”<br> Besides, most resourceful traders employ virtual private networks (VPNs) to conceal their identities and the source of their transactions.</p> 
<h2 id="strong-risks-involved-in-china-s-underground-crypto-black-market-strong"><strong>Risks Involved in China’s Underground Crypto Black Market</strong></h2> 
<p>The growth of the crypto black market regarding crypto demonstrates the initiative of Chinese investors, but it does so at the expense of their safety. They opt to carry out their trade in this uncontrolled environment, which exposes them to cheating, theft, and legal consequences. As reported by Global Financial Integrity, offshore crypto trading inside China is especially prone to scams, where numerous people get scammed into investing in projects that claim exceptionally high yields but mostly end up as empty propositions.</p> 
<figure id="attachment_45766" aria-describedby="caption-attachment-45766" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" loading="lazy" decoding="async" class=" wp-image-45766" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/09/maxresdefault-1.jpg" alt="Crypto Black Market " width="1493" height="840" title="China’s Crypto Black Market Surges to $23.7 Billion in 2024 Despite Crackdown 34">
 <figcaption id="caption-attachment-45766" class="wp-caption-text">
  Crypto Black Market
 </figcaption>
</figure> 
<p>Also, exposing oneself to underground trading of cryptocurrency within China bears severe legal implications. The Chinese government has shown it’s more than willing to chase after or apprehend people and companies involved in cryptocurrencies. The undermining of a primary global sewer that manages pet banknotes in cryptos was completed in June 2024, which led to the arrest of 50+ people. Still, Chinese investors take that risk on purpose, given the high returns on investment possible through trading in cryptocurrencies.</p> 
<h2 id="strong-the-future-of-china-s-underground-crypto-trade-strong"><strong>The Future of China’s Underground Crypto Trade</strong></h2> 
<p>There seems to be no letup on the side of the government when it comes to the draconian regulation of digital assets. Nevertheless, the longevity of the underground economy means that China’s demand for crypto will not abate anytime soon.</p> 
<p>The use of decentralized finance (DeFi) solutions is believed to remain on an upward trend. While CE can close their business depending on the country’s laws and policies, decentralized platforms work within P2P connections, which are nearly impossible to shut down. In addition, there is evidence that other developments in the blockchain may enhance anonymity and security for investors.<br> As cited by Elliptic in their report, it is clear that “So long as there is demand, the black market for crypto in China will remain resilient and will transition to suit prevailing conditions.”</p> 
<h2 id="strong-conclusion-on-the-chinese-crypto-black-market-strong"><strong>Conclusion on the Chinese Crypto Black Market</strong></h2> 
<p>With the Chinese government’s enforcement measures to curb cryptocurrency usage, the black market remains buoyant, reaching $ 23.7 billion in 2024. This is rather impressive growth, which proves that Chinese investors are still quite inventive and willing to find a way how to work around government restrictions.</p> 
<p>Chinese traders are eager to continue trading despite advances in the cryptosphere and will adapt their methods accordingly. But at the same time, such a business carries really enormous potential risks, starting with fraud and ending with legal consequences. To what extent the Chinese government will someday allow the liberalisation of the crypto market is still unknown. Keep following <a href="https://thebitjournal.com/">TheBITJournal</a> and keep an eye on the Chinese crypto Black market.</p>

China’s Crypto Black Market Surges to $23.7 Billion in 2024 Despite Crackdown

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The Bit Journal

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