China’s Traders Become Mainstream Heroes By Defying Exchange Ban
China’s new crypto bans are already failing to deter investors, who are openly flouting orders on ICOs and exchanges.
Chinese investors are defying the ICO and exchange ban to such an extent that their rebellion has even made mainstream news.
Citing traders and commentators in mainland China and over the border, Reuters notes that despite “sensitivities” on the topic, cryptocurrency holders are seeking any reasonable method to continue trading.
“They can’t set rules to stop me from investing in what I want to invest in,” an anonymous Chinese user told the publication Friday.
“They say you are protecting me, but as long as I think this is good, they have no way to intervene.”
China’s original ban on ICOs and impending ban on crypto-to-fiat trading seriously dampened market appetite for expansion earlier this month. A rebound has been slow to materialize, with each announcement from the country’s authorities serving to quash growth once again.
As the renminbi dropped almost two percent this week - the most since its 2015 devaluation - suspicions are mounting the Bitcoin ban was too well timed.
As with China’s previous exchange ban in February, however, traders appear broadly unfazed.
“I can do over-the-counter trades or I’ll go offshore...My wallet is my wallet. I’ve never registered my identification card,” the anonymous investor continued.
China’s LocalBitcoins market posted its highest-ever weekly volumes of 115.1 mln yuan for the seven days to Sep. 23.
A shift in focus to offshore meanwhile is something not just users, but industry insiders foresee as increasingly common once the full exchange ban in place by the end of October.
Investment guide author Zeng Danhua told local news outlet Yicai this week:
“The trend of digital currency transactions moving offshore is inevitable. The regulators may have needed to shut the platforms to guard against financial risks, and there may be a Bitcoin bubble, but its investment value persists.”