China’s Control Over Global Bitcoin Exchanges Falls From 90% To 1%

According to the UK publication named Express, the government of China recently confirmed that the country’s control over the global bitcoin exchange market has significantly fallen. The fall is quite dramatic – from 90 percent to 1 percent.

This made a lot of experts in China fear out of losing control over the market, according to the UK publication.

Local experts claim that the cryptocurrency trading activity in China was never 90%. However, there is still the fact that China banned cryptocurrency trading as a whole in 2017, which is why a fall like this could be expected.

In early 2018, the Chinese government even tightened the ban on cryptocurrency trading by requesting local banks to prevent dealing with crypto exchanges and trading platforms. Since it is illegal to trade cryptocurrencies in China and crypto exchanges are not permitted to operate within the region – everyone should expect a drop like this.

This news also fueled a lot of crypto trading platforms in Hong Kong, leading them to demonstrate a premium on the price of major digital assets. However, the breaking point was the moment local exchanges were requested to implement a no-fee policy when the trading volume of Bitcoin exchanges dropped by 80%.

Still, it is more than evident that China even at its peak, had about 10 to 20 percent of the Bitcoin exchange market.

Knowing that the Chinese government has openly funded blockchain projects in China, it is expected that only local and native projects in the country would thrive over the next couple of years. Since China has banned Google, Facebook and YouTube (replacing them with Baidu, WeChat, and Youku) the sense for market domination is evident and there is big support towards platforms like VeChain, Qtum and other blockchain projects that were created domestically.