Bitcoin trading in China blooms despite the government ban

26 December 2017

Despite the ban imposed on Bitcoin trading by the Chinese government, Internet users in the country are increasingly trading the cryptocurrency using backstairs like peer-to-peer exchanges. On P2P platforms buyers are directly linked to the sellers as compared to conventional exchanges with centralized control or intermediary service.

According to the report from the South China Morning Post, government in China has noticed this activity and the National Committee of Experts on Internet Financial Security provided a comment, noting that trading cryptocurrencies over the counter is in full bloom and it means that authorities will be making more efforts to surveil the citizens.

Matthew Graham, chief executive at Sino Global Capital, a technology advisory company based in Beijing, notes that following the period of some caution in the wake of the measures taken by the Chinese government, citizens are again open for taking part in cryptocurrency trading with the number of market participants expected to grow further.

There are currently 21 active over-the-counter services providing access to trading cryptocurrency, as compared to just four recorded before October this year. P2P trading of Bitcoin has shown a vigorous growth by 250%.

Apart from P2P platform used for trading Bitcoin, users are actively sticking with messengers, where they can agree the terms of a potential transaction. A great number of traders performing large volume transactions prefer to use Telegram, as the messenger has an encrypted communication protocol, while less paranoid buyers and sellers are still using WeChat.

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