[2017-05-25]In China, the First OTC Bitcoin Trade Over 20,000 RMB

[Bitcoin Kan]

May 25, 2017 by Jon Southurst

Maybe you were excited at $2,400 yesterday. Or even $2,600 later in the day. While all that was happening, a Chinese over-the-counter (OTC) exchange recorded its first 20,000+ RMB bitcoin trade. That’s about $2,900 USD.

The record trade of ¥20,107 happened at 4:06AM on 25th May (China time) on BitKan’s OTC exchange. It’s significant for two reasons: the high price, and the changing nature of bitcoin trading in China.

Shortly after the first above-20,000 trade, the price dropped to around 16,000 RMB ($2,320) but has been rising since.

Over-the-counter trading means users trade directly with each other, rather than on an exchange. BitKan’s system has similarities to an exchange, offering a trading platform with charts — but it still matches individual sellers with individual buyers. They usually use electronic payments like WeChat or PayPal to move fiat funds, so users don’t have to be in the same physical location.

If you sell a bitcoin to a friend, that’s technically an over-the-counter trade. Some brokers can arrange such off-exchange trades worth millions of dollars. Reasons for trading OTC mainly include convenience, speed, privacy.

As mentioned here previously, a sizeable amount of China’s bitcoin trade is moving to OTC markets thanks to recent crackdowns on online, centralized exchanges.

BitKan’s platform now has over 500 traders, and a total 50,000 OTC exchange users.

Reasons for Surge in OTC and Other Trading

In a Chinese article recently, BitKan said this is also causing prices in OTC markets to soar.

“Because the major bitcoin exchange platforms have been banned from processing withdrawals by the Chinese supervision department, a lot of bitcoin traders have moved to OTC trading. Compared to the depression in spot market, the OTC price is rapidly rising at the same time. Because traders can buy actual bitcoins OTC.”

BitKan CEO Yang Liu added there were three main factors worldwide driving up the bitcoin price, whether on-exchange or off.

The WannaCry malware attacks are actually helping, by drawing attention to bitcoin and forcing many to buy. Since it first appeared, BitKan’s monthly new-user acquisition has risen tenfold.

New favorable regulation in both Japan and Australia are also helping. On the other hand, political instability in South Korea is also boosting price — and OTC trades.

The last factor is the new Bitcoin Scaling Agreement out of New York City this week. While bitcoin was definitely on the move before the agreement happened, the prospect of finally solving problems like 200,000 stuck transactions in May could bring money out of altcoins and back into bitcoin again.

Do you trade on exchanges or some other way? We’d like to hear your thoughts.
http://bitsonline.com/china-first-otc-20000rmb/

[1714797510]

1714797510

[1Referee]

Chinese trading has changed from the very moment the exchanges there have been subject to all kinds of ridiculous regulations. It's not for nothing that the P2P market has exploded in a very short period of time. People are sick and tired of all the nonsense verification steps they have to walk through in order to make use of an exchange. Seriously, recording yourself on camera with your ID next to your head is beyond insane. I am glad the western exchanges aren't being forced to abide by these barbaric rules.

[Kemarit]

Chinese trading has changed from the very moment the exchanges there have been subject to all kinds of ridiculous regulations. It's not for nothing that the P2P market has exploded in a very short period of time. People are sick and tired of all the nonsense verification steps they have to walk through in order to make use of an exchange. Seriously, recording yourself on camera with your ID next to your head is beyond insane. I am glad the western exchanges aren't being forced to abide by these barbaric rules.

I have in that kind of verification here in the Philippines but it was approved without any hassle. I know tighter regulations has been put in place by PBoC just to check everything is according to the rules.

And it looks like they are back in the trading scene and recording first 20,000+ RMB bitcoin trade. Such amount only mean that want to be back and be relevant since Japan and South Korea has taken over. I think we just have to wait and see if the Chinese has still has it, in terms of influencing the price of bitcoin.

[CardShare]

Chinese trading has changed from the very moment the exchanges there have been subject to all kinds of ridiculous regulations. It's not for nothing that the P2P market has exploded in a very short period of time. People are sick and tired of all the nonsense verification steps they have to walk through in order to make use of an exchange. Seriously, recording yourself on camera with your ID next to your head is beyond insane. I am glad the western exchanges aren't being forced to abide by these barbaric rules.

I have in that kind of verification here in the Philippines but it was approved without any hassle. I know tighter regulations has been put in place by PBoC just to check everything is according to the rules.

And it looks like they are back in the trading scene and recording first 20,000+ RMB bitcoin trade. Such amount only mean that want to be back and be relevant since Japan and South Korea has taken over. I think we just have to wait and see if the Chinese has still has it, in terms of influencing the price of bitcoin.

I agree with that statement, It dose seem like we will need to wait and see to be honest. Regulations do seem to be the key factor at the moment.

[Wa(t)ch_night()]

Chinese trading has changed from the very moment the exchanges there have been subject to all kinds of ridiculous regulations. It's not for nothing that the P2P market has exploded in a very short period of time. People are sick and tired of all the nonsense verification steps they have to walk through in order to make use of an exchange. Seriously, recording yourself on camera with your ID next to your head is beyond insane. I am glad the western exchanges aren't being forced to abide by these barbaric rules.

I have in that kind of verification here in the Philippines but it was approved without any hassle. I know tighter regulations has been put in place by PBoC just to check everything is according to the rules.

And it looks like they are back in the trading scene and recording first 20,000+ RMB bitcoin trade. Such amount only mean that want to be back and be relevant since Japan and South Korea has taken over. I think we just have to wait and see if the Chinese has still has it, in terms of influencing the price of bitcoin.

I agree with that statement, It dose seem like we will need to wait and see to be honest. Regulations do seem to be the key factor at the moment.

I thought that according to the rules of it there are some laws for carrying out the transaction and in general in this matter, But if they are not then what will happen?

[1Referee]

And it looks like they are back in the trading scene and recording first 20,000+ RMB bitcoin trade. Such amount only mean that want to be back and be relevant since Japan and South Korea has taken over. I think we just have to wait and see if the Chinese has still has it, in terms of influencing the price of bitcoin.

The 20,000RMB trade was done through OTC, and not through the traditional Chinese exchanges - that's a major difference. It's a start of people slowly moving away from the traditional exchanges, and look for alternatives such as trading through OTC, or simply going peer to peer through LocalBitcoins for example.