Offshore Cryptocurrency Exchanges Being Monitored In China
Once again China steps up on enforing the policies of banning cryptocurrency trading. According to the report, domestic traders have tried to circumvent these restrictions by accessing offshore exchanges.
The Shanghai-based publication Yicai says the department had begun closely monitoring offshore cryptocurrency exchanges. The department has placed particular scrutiny on cryptocurrency exchanges headquartered in China, but having relocated their operations in response to the fiat-to-cryptocurrency trading ban.
The government claims that it has implemented these policies to prevent pyramid schemes, money laundering, and other fraudulent activities associated with the cryptocurrency industry.
Authorities have spent the ensuing months struggling to maintain enforcement of those stringent policies, despite actively policing these cryptocurrency trading venues, because small-scale traders have begun trading through P2P and over-the-counter (OTC) platforms, while others have successfully opened accounts at offshore platforms that offer conventional order-book trading.
Authorities have been largely successful in their quest to reduce trading- even if they have failed to stamp it out.
These movements caused cryptocurrency trading volume to drop in value according to CCN report, from 90 % to less than one percent.
Many experts predicted, that such a dramatic drop would spell doom for Bitcoin and its competitors, but those expectations were wrong.
This pressing on mainland RMB trading failed to have a lasting effect on the global cryptocurrency market. Both South Korea and Japan have emerged in the incident’s wake as major forces in both the regional and global ecosystems.
