- Investors in China continue to buy crypto amidst crypto ban.
- Cryptocurrency trading on DeFi platforms surge.
Despite the intensified fight to sustain crypto ban in China, reports have emerged that investors have remained defiant and continued to stake more money on crypto.
On Friday, China exercised more pressure in its effort to crackdown on cryptocurrencies. In a statement on its website, the People’s Bank of China declared all crypto transactions illegal and generally hurting prices in the crypto market.
However, locals in China have developed a tough skin despite the PBOC’s show of force. Cryptocurrency investors in the country have continued to buy more coins.
During an interview with Bloomberg on Tuesday, Bobby Lee, the chief executive officer of crypto wallet firm Ballet Global Inc. said local investors see it as an opportunity to buy the dip.
He noted that the crypto ban and crackdown had not been as bad as speculated by many noting that he too has personally bought more as prices have gone down.
Other local cryptocurrency investors seconded Lee’s view in the country. Stephen, another Shanghai-based cryptocurrency investor, said the policies are not new, so they now act as buying signals for them.
“These policies are not new to us, so we view them as a buy signal,” he said.
He also said he bought the dip but said the case might be difficult for new investors. People new to crypto might feel scared. Some of them will quit,” said Stephen.
Amidst crypto ban, trading on decentralized exchanges fires up
Just as Stephen and Bobby analyses, the sustained effort at cryptocurrency ban had no effect on traders who have been in the game for a long time. They simply find other ways of navigating around eventualities.
Also, after the cryptocurrency ban, reports have it that crypto trading volumes on decentralized exchanges (DEXs) like dYdX and Uniswap shot up significantly.
According to Stephen, despite regulators placing a ban on trading and mining cryptos, they are unlikely to implement an outright ban on the holding of digital assets because it would be too difficult to enforce.