How Chinese Bitcoin Buyers Are Getting Around Government Ban

[Mystezi]

Another way chinese buyers get around the government ban is by trading OTC themselves on websites (zb.com).There are hundreds of brokers working in wechat group seeling all sorts of coins.For example, if you live in Beijing and want to buy some bitcoins you can login to zb.com where you can find sellers across the whole china willing to accept RMB via wechat pay or alipay as a payment method.

Once your payment is verified by the exchange, the bitcoins will be transferred to you.So this is one way to buy bitcoin in China without complicated account opening and money transfer.

Another method is the traditional exchange method such as buying from exchanges like Coinbase,Bitfinex.However,to find such overseas account with fiat currency,you will be restricted with the USD $50,000 per year limit for cross-border exchanges.

[Sithara007]

The sooner the Chinese government realize that they can't ban Bitcoin, that better. What happened after they banned the crypto-exchanges in mainland China? The users just shifted to exchanges which are based in South Korea and Hong Kong. The main losers are local authorities in China, which are losing valuable tax revenue.

[btcprospecter]

Crypto currencies have spread to epidemic proportions no country can truly ban it. Exchanges on the other hand can but as this shows they can just set up exchanges elsewhere.

[xiaopang11]

I don't think the impact on Chinese bitcoin buyers is huge.
Now China's exchanges have moved abroad.
Chinese buyers only need to go to exchanges in other countries.

[icanscript]

https://cointelegraph.com/news/how-chinese-bitcoin-buyers-are-getting-around-government-ban

Chinese citizens are still investing in Bitcoin and the cryptocurrency market despite the government’s heavy crackdown.

In September 2017, Chinese cryptocurrency exchanges BTCC China, Huobi and OKCoin were ordered by the government to shut down their businesses. At one point, executives of the three cryptocurrency exchanges were prevented from leaving the country, due to a government investigation into local cryptocurrency exchanges.

Three months later, in December of 2017, China’s three largest cryptocurrency exchanges relocated their businesses to Hong Kong. BTCC China, Huobi and OKCoin rebranded to BTCC, Huobi Pro and OKEx, respectively. They intended to address the rapidly growing demand from Hong Kong-based investors.

Shortly after their move, the three trading platforms started to see daily volumes from Chinese investors grow exponentially. Somehow, Chinese investors were managing to circumvent Chinese trading restrictions by using Hong Kong-based exchanges. How is this possible?

In Hong Kong, it is relatively easy for investors to set up businesses. With less than $1,000, businesses can be legally created, which allows the opening of business bank accounts at Hong Kong-based financial institutions. Beginning in December 2017, many Chinese investors moved their funds from their Chinese bank accounts to Hong Kong bank accounts and started to trade cryptocurrencies more actively, effectively bypassing China’s restrictions.

But, unlike China, Hong Kong has a substantially lower supply to meet the growing demand. While China is home to major miners like Bitmain, Hong Kong does not produce much Bitcoin and other cryptocurrencies. As such, premiums in the Hong Kong cryptocurrency market increased, surpassing even that of the South Korean market. On January 18, when the global average price of Bitcoin was around $11,500, Bitcoin was being traded at above $13,000 on Huobi Pro.

Krystal Hu, a Hong Kong-based finance journalist, noted that traders outside of China have also started to take advantage of the arbitrage opportunity presented by the Hong Kong market. For instance, on January 18, the price of Bitcoin on Coinbase was $11,800. Purchasing Bitcoin from Coinbase and selling it on any Hong Kong-based market would have generated $1,200 in profit.

Only stupid government officials can try to prohibit the use of crypto currency.
The task is not feasible at this level of technology development.
People will always find a way to get around these restrictions, simply from the principle.

[1 currency now]

I don't think the impact on Chinese bitcoin buyers is huge.
Now China's exchanges have moved abroad.
Chinese buyers only need to go to exchanges in other countries.

It's not, the China situation is only temporary. People in China should be able to trade with a VPN on their computer.

[kasansa]

Surprisingly they were just continuing to buy bitcoins and the only difference is that they were now using counter sales to buy and sell bitcoins.

[Justin Dowman]

Restrictive measures do not solve such issues. No technical and technological means of control over crypto-currencies.

[bisdsad]

The Chinese government does not completely ban Bitcoin. They simply think that the risks of bitcoin and other cryptocurrencies are too high, and people are not encouraged to participate. If you still want to join, you can get through many ways, such as going to Hong Kong is a good example. Of course, I think the Chinese government will soon introduce corresponding policies.

[Hazaki]

People will eventually find ways to get around bans, restrictions and laws in general in ways that fulfill the same purpose without being illegal and that's what we call finding an ambiguity or inadequacy to circumvent the purpose that the particular law was made for .
Such  practices can be used into several fields and could lead to beat government at their own game .
I remember when our country prohibited the import of a certain chemical component so compagnies just imported the two needed components to obtain it and just mixed them on our soil and thus acquired what they needed without violating any law .
Even if the Chinese government imposes new restrictions i'm sure that people will find a way , with such volumes of bitcoins and altcoins created , such people won't be slowed down by some stupid attempts against fulfilling the purpose of Satoshi Nakamoto and making cryptos a way to exchange and store values without the intervention of third parties and thus avoiding centralization .

[yepaiyique2]

Chinese investors can still trade now!

They trade through the Internet! Trading is also very simple and quick!

There are no technical restrictions, perhaps because government officials are on holiday.

Perhaps limit trading is a fake news that doesn't exist!