The traders of cryptocurrency in China seems to have found a variety of options to avoid nationwide restrictions to trade digital currencies. However, the transactions dealing with peer-to-peer and decentralized, regulators will allow them to execute trading activity as per the valid source of the industry expert.
South China Morning Post reports that there are numerous retail investors involved in using cryptocurrency exchanges illegally to convert and exchange fiat into Tether, a stable coin while using cryptocurrency wallets directly. Based on the circumstances in place, the online actions are performed with the help of Virtual Private Network (VPN) in place that protects the anonymity of the trader and to avoid restrictions.
So far the government has not taken any actions to ban VPNs. However, the valid source are in place revealing, Chinese regulators definitely have the technical ability to shut down VPNs. […] However, traditionally it takes numerous conversations with different stakeholders to reach a consensus on configuring a firewall, which lengthens the process.
The Chinese tech giant Tencent has recently affirmed that they would ban all those transactions and accounts associated with cryptocurrency trading activities. However, in order to identify all these transactions and accounts are still questionable. Though the country has restricted certain cryptocurrency based activities, local exchanges are persistent enough such that they have organized their servers outside of the country by registering themselves as legal entities based offshore due to the cut-throat competition in place in the country.
According to China Morning Post, China blocked almost 124 offshore exchanges that caused the decline in volume by 33 percent collectively of seven renowned exchanges. Amidst all these, industry players remained positive about the certain decentralized transactions, peer-to-peer where regulatory or any authority do not restrict the activities.
The Chief Operating Officer of Hong Kong-based centralized cryptocurrency exchange TideBit, Terence Tsang said in his statement, The latest warning and potentially increased monitoring of foreign platforms is targeted at a batch of smaller exchanges that had claimed to be foreign entities, but are in fact operating in China claiming they have outsourced their operations to a Chinese company.
Let us not forget that the ‘hindsight is better than foresight’. So long as the new age technology is used in a fair transparent manner, it can offer cost and time effective results!!