Beijing Says ‘No’ To Crypto, But That Doesn’t Affect Many Chinese Citizens Who Continue To Trade Digital Coins Sanctions – reportedly, on exchanges including binance, ftx, okxAnd Huobi,
According According to a Bloomberg report, some portion of the country’s 1.4 billion people are looking for alternatives to traditional investments, including stocks and property, and are turning to crypto.
The article cited “various sources”, including FTX’s creditor profiles, citizens who said they have used the crypto platform, and industry insiders describing solutions to the ban.
ftx We bankruptcy filing showed that Sugar Users account for 8% of the exchange’s clients, with advisors counting more than 9 million client accounts, and claiming some $11.6 billion from creditors.
A Partner with Jack Ding, Crypto Exchange Expert Duane and Duane Law Firmtold Bloomberg that he represents six Chinese creditors with a combined $10 million in FTX claims.
Meanwhile, Chinese investors noted the compliance challenge during interviews: four said they traded on Binance after the ban came into force, and another said they also used OKEx.
The four claimed that they resided in mainland China and had passed Know-Your-Customer (KYC) procedures using Chinese identities.
Another Chinese investor, who lives in the United States’ Silicon Valley, said his $8 million worth of crypto on Binance has been frozen since July at the request of police in the central city of Chongqing, allegedly from illegal online casinos. Checking the attached coins.
OKEx declined to comment, the report said, while a Binance spokesperson denied that the company operates in mainland China in any way.
“Following the September 2021 ban, the Binance platform, including the website and mobile application, has been blocked following great firewall,” a Binance spokesperson was quoted as saying.
Ding said that, while crypto trading is illegal for the Chinese both at home and abroad, it is “difficult to enforce.”
Similarly, Caroline Malcolm, global head of public policy at the leading blockchain analytics firm Chainalysisargued that “essentially, sanctions don’t work.”
“The decentralized nature of cryptocurrencies and the fact that they can be transferred peer-to-peer and traded on global exchanges make it difficult for any government to eliminate them completely.”
While exchanges reportedly try to block Chinese IP addresses, many users turn to VPNs to hide their locations.
Bloomberg informed of In March Huobi Global was giving Chinese users the option to apply for a “digital identity” with Dominica, with app profiles showing them as Dominican citizens. Huobi responded by saying that it has completely pulled out of the Chinese markets and is not allowing Chinese people to sign up.
So far, no restrictions have been announced by the Chinese authorities on offshore exchanges for mainland users to sign up.
Chainalysis’ Malcolm argued that the ban has either been ineffective or is loosely enforced. Citing Chainalysis, the report states that,
“The average monthly value of crypto flowing into China is set to nearly halve in 2022 compared to a year ago, but still at $17 billion in size.”
Malcolm concluded that if the crypto sector is legalized in China in the future, “this could lead to an increase in demand for cryptocurrencies.”
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learn more:
, Binance Employees Are Reportedly Helping Users Bypass China’s Crypto Ban – Here’s What You Need to Know
, China Says It Has Shut Down All Crypto Exchanges — But Traders, Miners May Still Be Active
, State media says some Chinese crypto websites are ‘still operational’
, Hong Kong Financial Secretary Double Down on Crypto Hub Positioning Despite Crypto Winter
, Countries Where Bitcoin Is Banned Or Legal In 2022
, Countries where Ethereum is banned or legal