Despite Harsher Regulations Crypto-Traders Are Able to Slip By Chinese Authorities
In an effort to stop the trade of virtual currencies within China, the Chinese government is taking harsher measures to counteract citizens’ access to crypto trading services. Most recently, Chinese regulators have blocked access to over 100 foreign crypto exchanges, and have also increased their scrutiny of any third-party service that allows access to crypto-related trading. Despite these increased efforts, crypto-traders are still managing to skirt regulations.
As reported by the South China Morning Post, many Chinese traders are able to access crypto exchanges who host servers outside the borders of China, often through the use of Virtual Private Networks (VPN’s). While the Chinese government is aware of this technicality and is actively scrutinizing the exchanges that try to provide services in China, it is proving difficult to find and block access to every exchange. As explained by Terence Tsang, COO of the Hong Kong-based crypto exchange, TideBit, Chinese regulators are faced with the task of finding and determining which foreign-based exchanges are in fact operating in China, and which are not. For the moment, the government is targeting
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 […] Those exchanges whose website landing pages are in Chinese have drawn particular scrutiny by regulators. / Terence Tsang, COO of TideBit
With crypto-traders still managing to find ways around Chinese regulations, evidence suggests that the government has turned the heat on the third-party services who facilitate access to crypto trades. Baidu, a Chinese internet company akin to Google, recently removed access to two popular chat rooms dedicated to crypto trading, and both Alibaba and Tencent have also taken similar measures to try to eliminate crypto-related activities on their…
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