Expert Says Peer-to-Peer Nature of Crypto Activity Renders China’s Ban Ineffective
Rising instances of Chinese raids on underground gangs and companies using digital assets to facilitate illegal foreign exchange transactions are exposing China’s seemingly faltering crypto prohibition, a Bloomberg report has said. It suggests that the alleged busts of gangs moving more than $140 million (one billion yuan) could indicate that China remains a significant crypto market, despite the 2021 ban.
As previously reported by Bitcoin.com News, China has not only curtailed the use of crypto but also cracked down on cryptocurrency mining. This crackdown is believed to have prompted many miners to relocate to more welcoming countries, resulting in China relinquishing its position as the world’s top Bitcoin miner. However, the Asian nation’s attempts to block or curb cryptocurrency trading have not been as successful.
The Bloomberg report explains that the persistent demand for crypto among Chinese residents can be attributed to their desire for alternative investments and a means to circumvent the country’s strict capital transfer rules. Additionally, understanding the decentralized nature of crypto assets like bitcoin (BTC) may also be sustaining Chinese residents’ interest in crypto.
