Topic: How Chinese Bitcoin Buyers Are Getting Around Government Ban - page 2. (Read 285 times)
the Chinese government also does not forbid bitcoin literally in china.they just forbid exchanges, chinese government can not stop people to use it because people have already seen that potential. The reason why so many chinese people go here in hongkong, some change and liquidate their btc for fiat while others buy ... hongkong has improved got 3 atm atm in center and 2 in tsim tsa tsui.so i dont think the government can stop people frm itsaleves china find their own way.
it is a good answer to all those who are always wondering "what if government bans bitcoin". well Chinese haven't banned bitcoin exactly but you can see what happens. people will continue using bitcoin because it is decentralized and government has no say in whether or not people can use it.
That's true. It's incredible how resourceful these guys are. I feel like this more of a way for them to earn easy money by exploiting arbitrage rather than sidestep regulations though, given the fact that traders outside China have also been doing the same.
thanks for sharing this.
it is a good answer to all those who are always wondering "what if government bans bitcoin". well Chinese haven't banned bitcoin exactly but you can see what happens. people will continue using bitcoin because it is decentralized and government has no say in whether or not people can use it.
and that's not all. when they closed down exchanges, everyone's first move was to move on to decentralized way of trading bitcoin. things like localbitcoins for example where the choice.
it is a good answer to all those who are always wondering "what if government bans bitcoin". well Chinese haven't banned bitcoin exactly but you can see what happens. people will continue using bitcoin because it is decentralized and government has no say in whether or not people can use it.
and that's not all. when they closed down exchanges, everyone's first move was to move on to decentralized way of trading bitcoin. things like localbitcoins for example where the choice.
https://cointelegraph.com/news/how-chinese-bitcoin-buyers-are-getting-around-government-ban
Quote
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.
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.
chinese government dont banned the bitcoin literally in china.they just banned the exchange,chinese government cant stop people frm using it coz the people already saw the potential.the reason why so many chinese goes here in hongkong,some change and liquidate their btc to fiat while others buy...hongkong is already improving got 3 bitcoin atm in central and 2 in tsim tsa tsui.so i dont think government can stop people frm it chinese themsaleves finds their own way.
Binance seems to be doing quite well. I noticed that when I was in Shanghai earlier this month I couldn't connect to most websites having to do with "bitcoin." I wonder where the majority of Binance customers are located.
Where there is money to be made, there will be ways to circumvent things that the government says. Though I don't really understand people who are buying Bitcoin in China for no other reason but to go ahead and simply buy, I'd understand if miners were doing this in order to buy and build more and more miners in a time where the chinese government is starting to crack down on everything bitcoin (mostly mining now)
I don't see a purpose here, can't they all just use cash with ease?
I don't see a purpose here, can't they all just use cash with ease?
This definitely lends credence to my theory that Chinese market manipulation is still rife in crypto.
Everybody have been acting as if the Chinese suddenly took all of their bitcoins and vanished into thin air in September when exchanges were banned in mainland China, whereas the reality is they just moved their coins to exchanges located outside China.
Expect to see more shenanigans like January 15 from the Chinese in the future..
Everybody have been acting as if the Chinese suddenly took all of their bitcoins and vanished into thin air in September when exchanges were banned in mainland China, whereas the reality is they just moved their coins to exchanges located outside China.
Expect to see more shenanigans like January 15 from the Chinese in the future..
Yes. It's my belief that they're still players and are acting through the Hong Kong and Korean exchanges (hence the huge volumes that suddenly appeared in the Korean exchanges after the China "ban")
https://cointelegraph.com/news/how-chinese-bitcoin-buyers-are-getting-around-government-ban
Quote
Chinese citizens are still investing in Bitcoin and the cryptocurrency market despite the government’s heavy crackdown.
Indeed it is a fact, because Chinese citizens are very enthusiastic and fluent in the use of cryptocurrency, and they are also very shrewd in the use of cryptocurrency, both with trading and investment.
While the Chinese government didn’t really ban its citizens from using bitcoins, it only banned the exchanges to close down and they were wise to move to Hong Kong where the Chinese government had no jurisdiction there so now they are not breaking the law there at all and Chinese nationals are not breaking the law since Bitcoins is not illegal there.
Yes this is the right news.
The Chinese government simply closes exchange accounts only, because their activities are allegedly contained gambling elements, and this is strictly prohibited by their legislation there.
This definitely lends credence to my theory that Chinese market manipulation is still rife in crypto.
Everybody have been acting as if the Chinese suddenly took all of their bitcoins and vanished into thin air in September when exchanges were banned in mainland China, whereas the reality is they just moved their coins to exchanges located outside China.
Expect to see more shenanigans like January 15 from the Chinese in the future..
Everybody have been acting as if the Chinese suddenly took all of their bitcoins and vanished into thin air in September when exchanges were banned in mainland China, whereas the reality is they just moved their coins to exchanges located outside China.
Expect to see more shenanigans like January 15 from the Chinese in the future..
While the Chinese government didn’t really ban its citizens from using bitcoins, it only banned the exchanges to close down and they were wise to move to Hong Kong where the Chinese government had no jurisdiction there so now they are not breaking the law there at all and Chinese nationals are not breaking the law since Bitcoins is not illegal there.
https://cointelegraph.com/news/how-chinese-bitcoin-buyers-are-getting-around-government-ban
Quote
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.
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.
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