Cryptocurrency trading in China is prohibited, but traders have found many ways to bypass the restrictions. One of the most popular ways is transferring the fiat funds to Tether stablecoin, also the direct exchange between purses via VPN, China Morning Post reports.
“Chinese regulators definitely have the technical capability of blocking the VPN. But usually, there is a lot of discussions between various parties in order to reach an agreement on the firewall configuration, that drags the process out”, the source says
Authors of the material refer to the data of Shanghai Securities News.
This media, associated it financial regulators of the country, reports that Chinese cryptotraders convert yuan into Tether (USDT) and the latter then arrives in various p2p sites.
“The latest warning and monitoring of foreign platforms are targeting a group of small exchanges that are considered foreign, but actually work in China and claim they are delegating all operations of the local company to overseas”, – said Terence Tsang, the operating director of the Hong Kong TIdeBit exchange.
After the ICO ban and actual termination of the trade in cryptocurrencies that followed it, many local exchanges moved the server abroad, having obtained an offshore registration.
In response, financial regulators of China announced their intention to block access to 124 foreign crypto-exchange sites that provide services to local residents.
However, many industry participants believe that while transactions remain decentralized and peer-to-peer, regulators will not be able to completely block the access of Chinese residents to digital assets.
Worth to recall that in late August, popular Chinese messenger WeChat began blocking accounts related to blockchain and cryptocurrencies.
A bit later, forums of the Baidu Teiba platform started to do the same.