Despite the theft of crypto in China, traders are still betting | Banking Issues

Chinese investors are ignoring the government’s crackdown on cryptocurrency trading since 2017, signaling opposition to Beijing’s bid to revive the digital economy.

Knee trading has provided a steady stream of computers on which Chinese crypto retailers have been using since the banned domestic exchange in 2017. One of the key trends in the region – the exchange between the Chinese yuan and solidcoin Tether – has fallen by almost 4.4% after a government warning earlier this month but has returned more than half, according to the crypto platform Feixiaohao, similar to Chinese CoinMarketCap.

China has grown even after the sharp rise in Bitcoin and other tokens in the past six months has fueled the Communist Party’s long-standing concerns about the potential for fraud, money laundering and loss of trade by traders. However, the complexity of what is happening on the local OTC platforms and its peers means that it will be very difficult for government officials to comply with the ban rules.

This may bring relief to crypto lovers around the world after concerns over China’s low purchasing power have helped nearly $ 1 trillion to sell digital goods from high-profile mail in mid-May.

Regarding the loss and destruction, “I don’t care,” said Charles, a 35-year-old real estate consultant in Shanghai who asked to be identified by his first English name. He has been buying crypto currency since 2017 and is said to have lost $ 11 million in three days in recent days. “For me I am repaying the profits I made in the last few months,” he said. “I’m looking for a 10- to 20-year lead.”

Before China scrapped the crypto exchange in 2017, local businesses owned 7% of the global Bitcoin and accounted for about 80% of the trade, according to state media. Exchange restrictions have made it impossible to compare these figures today, but Chinese who still believe they still have a strong history in the world of crypto through OTC domestic platforms and remote locations they access via the network.

Domestic and foreign exchange transactions related to the yuan and digital currency are difficult for the Chinese government to comply with because they occur in two separate states.

The first takes place on OTC platforms used by companies including Huobi and OKEx, which allow traders to send bids and donations. When both parties agree on a price, the buyer will use a special payment method – managed by their bank or fintech company like Ant Group Co – to send the yuan to the seller. Digital currencies, which are usually in the escrow and OTC platform until the full yuan is depleted, are transferred to the buyer. Chinese regulators often do not have the means to link one segment of the transaction with another.

Because the yuan of the trade is fully integrated into China’s financial services, the risk of a major outflow is low. But this has not stopped the government from warning financial companies and investors to stay away from crypto.

Monitors this month reminded Chinese banks and payroll companies of the need to be aware of and detect suspicious activity, and pointed out that running a cryptocurrency business often violates banking regulations. China’s State Council is set to crack down on Bitcoin trading and mining, and has vowed to “make sure” to avoid financial crisis.

Proponents of her case have been working to make the actual transcript of this statement available online.

Following a government statement, Huobi said it had banned China’s miners’ supervision operations and was reducing future contracts and investment in other markets. It is unknown at this time what he will do after leaving the post.

Chinese authorities have so far ceased to say that human trafficking is illegal, but the investigation will also affect the Department of Homeland Security because some of the items are thought to be contributing to money laundering and terrorist financing, according to a source close to the case.

Police in Beijing have issued printed warnings about the dangers of cryptocurrencies. Real money is one of the most common scams of the past, and anyone “in fear, difficult to distinguish or do not know what to do” should call the local police, according to information provided by Bloomberg.

On the financial media, some crypto investors have made unconfirmed claims that they have been summoned by local police recently and warned of the dangers of making money in cryptocurrencies. Another seller said government officials wanted him to sell his property. Another said police asked him to remove the commercial software from his phone.

Chinese authorities believe they have managed to clean up their lending companies two years ago as an example of cryptocurrency embezzlement, the man said, asking not to be named as the matter confidential. The country cleaned up P2P factories after fraud and corruption spread, sometimes leading to suicide and street protests. In its early days this sector had more than 50 million users and $ 150 billion in existing debt.

The shift in prices for cryptocurrensets has already left a mark. In a notorious case, a Chinese man from the eastern city of Dalian killed his three-year-old daughter and tried to kill himself and his wife after losing 20 million yuan ($ 3.1 million) in a betting bet on Bitcoin last June, according to local media reports.

Peter, an expert in Beijing, accumulated 20,000 yuan in cryptocurrencies three weeks ago, just in time for the recent fluctuations. Within a few days, its reputation grew to about 100,000 yuan, then dropped to 14,000 yuan. He also spoke of the carpe philosophy of crypto traders around the world: “It doesn’t matter if everything goes zero. What if one day I find a sudden wealth?”