Are lockdowns in China dampening crypto investments?
How is the pressure exerted by the government on the crypto market in China being met by Chinese investors? The details are in our news.
Do restrictions in China reduce crypto investments?
After the rise of Bitcoin and other cryptocurrencies in the last six months, the government in China is dealing with fraud and corruption. It has begun to put pressure on cryptocurrencies, citing money laundering reasons.
After the crackdown in China, crypto exchanges announce their decision to suspend contract trading services.
BitMart is announcing its decision to suspend contract trading services for all users. announced that it has decided to suspend its services. Huobi completely banned new users from choosing the futures feature.
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OKEx director Lennix Lai emphasized that Chinese users are not prohibited from owning cryptocurrencies.
“China will be stricter on exchanges and mining operations, but people in general, including Chinese citizens, can use and hold cryptocurrencies. Exchanges like OKEx have reduced some services and products only available to Chinese citizens. Any changes resulting from this notice will not affect non-Chinese citizens and will only affect users residing in China and using the Chinese currency renminbi.”
There has been a steady increase in over-the-counter platforms used by Chinese crypto traders since local exchanges were banned in 2017.. According to Feixiaohao, although there was a 4.4% drop in transactions on these platforms last week, half was recouped in a few days.
Investors are flocking to over-the-counter (OTC) platforms, according to a report published in Bloomberg. .
“After the rise in Bitcoin and other cryptocurrencies in China, the government appears to be increasing the pressure on cryptos to prevent losses from individual investors due to money laundering, fraud and excessive volatility.. This pressure has led traders to the over-the-counter markets. These platforms, which are inherently difficult to follow, mean that enforcing the ban will be difficult.”
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