China has a ban on crypto and ICOs but the Chinese crypto enthusiasts keep on coming, with tokens available for those that want to flout state rules.
ICOs banned in China are increasingly coming under pressure and most of the big names have set up overseas to avoid becoming entangled in complicated prohibitive regulations. Thus, any advertising relating to ICOs is quickly jumped on by the authorities in an attempt to eradicate them from mainland China.
Clearly, the way to survive the ban is to do your business quietly, which is what many investors have learned to do, ensuring that their crypto life goes on as normal. The latest method to circumvent rules and buy tokens is for buyers is to log in on a platform for over-the-counter (OTC) transactions, where WeChat, Alipay or bank transfer mainstream currencies are readily available. Even setting up an ICO is possible if you know how, according to local media, as many Chinese companies are setting up overseas.
Despite the obvious continuation of trading and increase in peer-to-peer activity, the Chinese government recently called its a ban a “success”. Zhang Yifeng, a blockchain analyst at the Zhongchao Credit Card Industry Development Company, commented on recent government data which suggested that Chinese yuan (CNY) was currently being used in less than 1% of crypto-trades:
“The timely moves by regulators have effectively fended off the impact of sharp ups and downs in virtual currency prices and led the global regulatory trend.”
However, the word “success” may be purely subjective on this occasion, seeing that the ban drove out Binance, one of the world’s largest cryptocurrency exchanges, along with other hugely “successful” platforms, taking along with them an enormous investment pool.
With the latest revelation that the Industrial and Commercial Bank of China (ICBC) intends to focus on developing blockchain technology, China’s blockchain growth goes from strength to strength regardless, and this is clearly where China sees its future regardless of any later decision they may take on lifting the current crypto ban. Financing events this year have involved far in excess of CNY 6 billion, with over 10% of blockchain businesses being able to obtain more than CNY 100 million yuan of financing to further develop their enterprises.
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