Bitcoin Trading In China: Maintaining Investments Despite Crypto Ban

The Chinese Government claims that their cryptocurrency ban is successful. However, it appears that traders are capable of finding new ways to bypass the ban and help exchanges to avoid being shut down so Chinese citizens can trade uninterrupted.

Shanghai Securities Times reported that at the end of August authorities have blocked access to exchanges that still operate illegally and blocked more than 120 offshore exchanges that provide services for Chinese citizens. However, offshore exchanges regularly changed their domain names in order to avoid detection and moved servers in countries outside China.

Following the so-called successful ban, the government shut down high-profile exchanges and crypto projects and scaring citizens away from the crypto market. Despite the many efforts of the Chinese regulators, it is very unlikely that the government will be fully able to forbid all access to crypto exchanges.

The COO of TideBit, Terence Tsang said in an interview: “The latest warning and potentially increased monitoring of foreign platforms is targeted at a batch of smaller exchanges that had claimed to be foreign entities but are in fact operating in China claiming they have outsourced their operations to a Chinese company. Those exchanges whose website landing pages are in Chinese have drawn particular scrutiny by regulators.”

The government still hasn’t acted against VPNs but is trying to ban on the use of these tools in order to complicate the peer-to-peer transactions. WeChat, a popular Chinese company and a social platform have also taken action to block all crypto trading so they will be compliant with the government’s regulators.