Evidence suggests that citizens of the world’s most populous nation have found ways to avoid the system in order to continue dealing with cryptocurrencies and other digital assets nearly two years after China’s crypto ban.
Bloomberg reports that the demand for cryptocurrencies in Asia remains unchanged despite China’s ban on cryptocurrency activities.
Data from crypto intelligence company Chainalysis shows that the average monthly value of crypto streaming into China has dropped by half in the year after Beijing’s prohibition, but is still a massive $17 billion, as reported by Bloomberg.
The FTX’s credit profile and first-hand accounts from Chinese crypto traders are only two factors attesting to the inexhaustible appetite Chinese investors have for digital currencies.
Moreover, industry participants have demonstrated strategies to circumvent the cryptocurrency prohibition. The collapse of the FTX exchange was one of the most significant crypto events of last year, as it sent the market into a downward trajectory that led to a total loss of value of $200 billion.
According to a report by Bloomberg, eight percent of the defunct exchange’s consumer base consisted of Chinese nationals.
A common concern is whether or not compliance systems at exchanges would “filter out Chinese passport holders,” he said.
Despite the possibility that these transactions were conducted via a virtual private network, these investors all claimed to have registered for the exchange using Chinese identification.
In addition, it has been reported that prominent cryptocurrency exchange Huobi once permitted Chinese citizens to access its platform by assuming the digital identities of Dominican nationals. This is further evidence of the prominent loopholes in China’s crypto prohibition.
Also Read: Digital Currency Bill Makes Headway In Texas Legislature
Wallets