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A report revealed that traders based in China have chosen to bypass local crypto laws to continue trading cryptocurrencies.
What Happened: According to a recent Bloomberg report, Chinese cryptocurrency traders have continued to trade digital assets despite more recent government warnings against virtual currency transactions.
A State Council committee headed by Vice Premier Liu He recently reiterated the nationwide crypto ban, resulting in a market-wide mass sale given the committee’s high authority.
The fears appear to have been short-lived, as Bloomberg reported that Chinese cryptocurrency traders have gone to over-the-counter offices to continue trading cryptocurrencies.
“I don’t care,” Charles, a 35-year-old real estate consultant in Shanghai, told Bloomberg. Despite losing $ 11 million in the three days following Bitcoin’s sharp fall, he intends to continue to hold his cryptocurrencies.
“For me, it’s returning the profits that I’ve made over the past few months,” he said. “I am looking at the horizon for 10 to 20 years.”
Another telltale sign that Chinese traders have resumed trading in cryptocurrencies is the resumption of the exchange rate between the Chinese Yuan and Tether Stablecoin (USDT), which is used to facilitate most crypto transactions.
Immediately after the May 19 sell-off, the exchange rate fell 4.4% but has since recouped more than half of the losses, according to China’s crypto-data platform Feixiaohao.
Also Read: Chinese Stock Exchanges Tackle Robinhood By Offering Crypto Features To US Customers
Bloomberg notes that before the country’s crypto trading ban in 2017, China alone accounted for 80% of global Bitcoin trading.
These crypto investors are still believed to be a “major presence” in the crypto space operating through OTC platforms and offshore sites.
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