Despite Beijing’s ever-increasing crackdown on the cryptocurrency industry, there are still some signs of life in the People’s Republic of China regarding the Bitcoin network and OTC trading.
China intensified its crackdown on cryptocurrencies last week in a bid to crack down on any remaining digital asset-related activity within its borders. The system specifically targeted cryptocurrency transactions, but according to Cointelegraph research, this measure is not new to it. At least 19 similar crackdowns over the past decade or so.
Despite the latest move, there are still 135 bitcoin nodes in operation in China according to data from Sweet and bitter which measures nodes by geographic location. However, this represents only 1.21% of the total 11,262 bitcoin contracts scattered across the planet. There could be more if they work behind VPNs and/or use onion routing with Tor that hides locations
Bitcoin nodes are the software that runs the protocol, and contain the entire ledger or part of it containing the history of transaction data. Distributed and decentralized systems are specifically designed to be difficult to shut down completely, so the system may struggle to extinguish these last few hangers or those running through Tor.
While it is difficult to put numbers on volume due to its opaque nature, over-the-counter (OTC) trading also maintains a foothold in China according to many Reports As is the local currency pair.
Local media outlet Wu Blockchain reported that the Chinese currency pair RMB/USDT, which is still offered by major exchanges such as OKEx and Huobi, is trading at a higher price. He pointed to panic selling last week, which has since fallen off.
OKEx is currently offering 6.35 Yuan for 1 USDT with the effective exchange rate to the US dollar being 6.47 according to XE.com.
Peer-to-peer OTC trading circumvents the use of the bank or spot markets on centralized exchanges – although many exchanges have related OTC desks. according to coexistenceIn China, volumes have been relatively stable since early 2020 with around 7 million yuan (about 1 million US dollars) trading weekly on the P2P platform Localbitcoins.
Former CEO of China’s first BTCC crypto exchange, Bobby LeeIt is believed that Beijing will target OTC offices in its next campaign. Earlier this week, he said OTC platforms operated by major exchanges would be shut down or forced to exclude Chinese users. Speaking to Bloomberg on September 29, Lee added:
“They really don’t want any loopholes where people can use digital currency as a way to move assets offshore.”
Follow it with anticipation Bitcoin markets set to see another FOMO rally Prices can send up to $200,000.