How does the cryptocurrency market get around the fierce Chinese ban?

Since the Chinese government declared all cryptocurrency transactions illegal last week and banned citizens from working for crypto-related companies, the price of cryptocurrency has skyrocketed. Bitcoin Although one of its largest markets is closed.

Cryptocurrencies bypass government regulation

Experts say that Chinese miners for cryptocurrencies such as Bitcoin and Ethereum They will take their high-powered servers abroad, and digital asset exchanges, and several Chinese start-ups associated with commerce, are also expected to regain their place abroad after dropping local customers from their rosters.

The founder of the financial advisory firm said Capronasia Kapronasia in singapore, xenon kapron 

“Digital exchanges need cloud infrastructure, they need developers, they need management to move things in the right direction, and it doesn’t matter if it’s in Taipei, San Francisco, Singapore or Shanghai, these companies are completely virtual.”

"The real impact we've probably seen has been for miners, most of them are now in the process of moving abroad, and some of them have already completed their move."

The most powerful anti-encryption measure to date

in a 24 In September, the People's Bank of China, the monetary authority in Beijing, issued a statement saying that cryptocurrencies lack the status of other monetary tools.

The notice, which was issued along with nine other government agencies, including the Public Security Bureau, declared all related actions illegal and warned that cryptocurrency transactions originating outside of China would be treated as crimes.

The Chinese ban imposes sanctions on international exchanges that deal with people inside China, and news reports indicate that international crypto exchanges have been trying to cut ties with Chinese customers in recent days, but the companies themselves are largely silent.

Capron explained that the growing Chinese pressure on cryptocurrency over the past few years has prompted stakeholders to leave the country, adding that less than a quarter of the country's native crypto-lending startups (small businesses that connect individual lenders and borrowers) remain in the country. China.

It is mentioned here that many countries are considering adopting new digital currencies that would allow people to exchange money without an intermediary, such as banks, and proponents of this move believe that these currencies can offer the benefits of cryptocurrencies that make the exchange of money easy, but without price volatility. Decentralized digital assets such as Bitcoin.

The economist sees the private banking unit in a bank CIMB Malaysian Song Seng Wun Chinese authorities may eventually take a more tolerant approach to cryptocurrencies that are not subject to state sanctions, although they will be subject to strict standards.

He added that Blockchain The core technology behind the transaction public ledger makes cryptocurrency trading transparent, and it could also continue to develop in China for other purposes.