On May 11, all financial institutions and payment companies in China were blocked from providing any services related to cryptocurrencies.
Beijing has warned investors not to make crypto investments based on speculative. Although stern warnings have been issued, Chinese crypto traders have not wavered as this rhetoric is nothing new, it has been repeatedly chanted since 2017.
Data from China’s crypto platform Feixiaohao showed that the exchange rate between the Chinese yuan and Tether (USDT) only recorded a 4.4% decline after the government’s announcement of a strict ban on anything crypto -related.
The nature of crypto transactions on OTC platforms and P2P networks makes it increasingly difficult for governments to implement a full ban. Before China banned crypto exchanges in 2017, local investors owned about 7% of Bitcoin in the world and accounted for about 80% of trade based on data released by Chinese local media. With the recent ban on crypto exchanges it has become increasingly difficult to make projections .
Chinese investors are still believed to play a leading role in the crypto world through domestic and international OTC platforms. Even so, regulators have warned Chinese banks and payment firms to identify and block all suspicious transactions involving cryptocurrencies.
