Topic: China’s Crypto Custody Sector Is Growing despite the Mainland Ban (Read 151 times)

China didn't ban cryptocurrencies. It's a half story being used as FUD for a long time now.

China blocked China based cryptocurrency exchanges from selling crypto for Chinese Yuan. They are allowed to trade crypto to crypto and you can buy and sell for Chinese Yuan as long as it is not from an exchange based in China.

They are basically trying to regulate the crypto environment in their country in such a way that it doesn't effect their internal economy as it helps ultra rich to transact in overseas market. They have been putting such regualtions on online sphere for a long time now.

It's always going to be the same results: Government X bans bitcoin, bitcoin drops heavily in a sharp big red candle, then this dip gets bought by the smart money as they understand the fundamentals (the fact that a government bans bitcoin is irrelevant long term, and they see the dip as it is: another great chance to accumulate at cheap prices.



And most people going OTC are the ones that own most of the money. Rich people never use exchanges, the real whales go for OTC deals, so all these bans just don't matter.

What could be really banned if its technological ?

In many countries the VPN  usage is sky high and people keep going to websites the government has banned. That is just one example, I have seen bans on all kinds of tech related stuff in some countries that people keep finding solutions to by pass that ban.

China is a huge country and yes if they allowed people to use coins the way they want and let them be the bitcoin deal would have been a lot bigger there however no matter how much you ban crypto, it is not something you can just go and ban, the things you ban are the exchanges and people can still trade OTC some how.

China’s Crypto Custody Sector Is Growing despite the Mainland Ban
The debate on whether the central authorities can ever regulate the cryptocurrency industry intensates further with the launch of a Chinese crypto-startup.

In a right-in-your-face stunt, InVault begins offering its cryptocurrency custody services last week in China despite the mainland ban. The Shanghai startup proposes to attract cryptocurrency exchanges as its primary clients, believing they should avoid the moral hazard of holding clients’ assets.

A custodian, in a traditional sense, holds clients’ securities or cash for safekeeping – in both electronics and physical form. China’s implicit ban on keeping and trading cryptocurrencies could arguably disallow an organization to hold assets that 1) are virtual currencies, and 2) belongs to companies with no legal status in the mainland.

But InVault seems to have found a way to circumvent the ongoing crackdown. The startup offers a decentralized corporate cryptocurrency wallet service, meaning that there would not be a central control over the safeguarded funds. InVault will instead be the custodian of users’ private keys. Local media reports hint that the startup will keep the users’ private keys secured in several Physical Vaults. Only authorized personnel will have access to these safes.

Kenneth Xu, chief executive and founder of InVault, said the only way by which cryptocurrencies can be secured is with the absence of human oversight.

“Today, the vast majority of cryptocurrency exchanges globally still involve their senior management in managing the transfer of digital tokens ordered by clients. Putting the private keys to your cryptocurrency assets in the hands of senior management is akin to putting all your money in their control,” said Xu, speaking to the South China Morning Post. https://www.ccn.com/chinas-crypto-custody-sector-is-growing-despite-the-mainland-ban/