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Despite ban, Chinese citizens persist in cryptocurrency trading

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TL;DR

  • Despite the cryptocurrency ban in China, Chinese citizens are actively defying the restrictions and engaging in cryptocurrency trading.
  • China accounted for 8% of FTX’s total revenue, indicating significant Chinese participation in cryptocurrency trading.
  • Huobi Global denied involvement in facilitating Chinese users’ sign-up process and asserted that it had completely withdrawn from the Chinese markets.

Chinese citizens have been defying the ban imposed by Chinese authorities on cryptocurrencies and persistently engaging in cryptocurrency trading activities within the country. Reliable sources indicate that these traders and investors utilize popular cryptocurrency exchange platforms like Binance, FTX, OKX, and Huobi to conduct their transactions.

A significant segment of China’s vast population, which amounts to approximately 1.4 billion people, is actively exploring alternative avenues for investment, moving away from traditional options like stocks and property, and gravitating towards cryptocurrencies. This shift reflects their growing interest in the crypto market.

Various sources provide evidence for the continuous Chinese demand for digital tokens, including the creditor profile of FTX and personal statements from Chinese citizens actively trading on crypto platforms. FTX’s creditor profile and statements from Chinese traders contribute to the growing body of evidence supporting this claim.

Chinese citizens who engage in cryptocurrency trading have openly expressed their interest and involvement in digital tokens, further reinforcing the notion of sustained demand.

According to the firm’s most recent US bankruptcy documents, advisors analyzed approximately 9 million client accounts and discovered that China accounted for 8% of FTX’s total revenue. According to reports, the total amount of money creditors demand is $11.6 billion.

Jack Ding, a partner at Duan & Duan Law Firm specializing in crypto regulations, informed Bloomberg in a statement that he currently represents approximately six Chinese creditors affected by the collapse of the FTX cryptocurrency exchange. Jack said these Chinese creditors are seeking around $10 million from FTX.

In March, reports emerged stating that Huobi Global offered Chinese users the opportunity to apply for a “digital identity” with Dominica. These applications would display the users’ profiles as Dominican citizens.

Huobi promptly responded, asserting that it had completely withdrawn from the Chinese markets and had not permitted Chinese individuals to register. Huobi’s statement denied involvement in facilitating Chinese users’ sign-up process.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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