Chinese Traders Evade Crypto Ban
Chinese cryptocurrency traders have managed to find a way to bypass the ban on digital assets trading in the country, South China Morning Post (SCMP) reports.
As the main instrument for cryptocurrency trading, Chinese residents started using Virtual private networks (VPNs) to effectively enter and exit the crypto market, and Tether tokens as an exchange medium. By activating a VPN, the traders use a platform registered outside the Chinese region and exchange digital assets to fiat and inversely.
Prior to exchanging fiat to USDT, traders must pass the KYC procedure on the exchange. The trading platform, in turn, monitors such transactions and is always ready to consider the cases of failed trading or unsuccessful transactions, SCMP informs.
In August, the authorities of the Beijing’s Chaoyang District banned all cryptocurrency transactions on crypto exchanges and blocked more than 120 trading platform websites available for Chinese users. The measures of the authorities were aimed at small platforms that work as foreign organizations, but factually operate on the territory of China, said Terence Tsang, the executive director of TideBit crypto currency exchange, which operates in Hong Kong and Taiwan.
At the beginning of fall 2017, residents of China began searching for alternative ways to enter the cryptocurrency market, when the state authorities initiated their fight against cryptosphere. Since VPNs can not be blocked, the technology has become an excellent way to bypass all restrictions and maintain access to banned Internet resources.
Earlier it was reported that the authorities of Guangzhou, a special economic zone in PRC, banned any activities related to the sphere of cryptocurrencies.