Some information about the peculiarities of national crypto-currency trading in China
In early autumn of 2017, the authorities of China shut down several of the largest exchanges – Huobi, BTCC China, and OKCoin, and their employees had to put up with a ban on leaving for a long time as long as the investigation was conducted.
However, in December last year, exchanges moved to Hong Kong, where the demand of investors is much higher. Despite these prohibitions, the volume of trading by Chinese depositors continues to increase rapidly. Then it is caused?
First of all, it is worth noting the fact that it is quite easy to create a business in Hong Kong. At least in comparison with how messy this procedure is in other cities of China. In December 2017, the major players sent funds to Hong Kong’s personal bank accounts and, using this cunning, managed to circumvent the bans of the Chinese department.
It is worth noting that the demand for tokens in Hong Kong is several times larger than the offer, which is why the local premium market is much higher than the average. While the average price per Bitcoin in the world was about $ 11.5 thousand, on the Huobi Pro exchange, it traded at $ 13 thousand.
Journalist Crystal Hu argues that such privileges of arbitration are actively used not only by Chinese citizens because after buying bitcoin on the same Coinbase and selling it on the Hong Kong market, the potential earnings on each token will be $ 1,200.
By the way, in Hong Kong are in demand and various financial and technical applications. For example, Alipay, valued at $ 60 billion, or WeChat Pay. Today, more and more trading tools are being generated, but unfortunately, along with them, there are a lot of phishing applications.
The Chinese authorities, like the National Bank, are aware of this “loophole”, so they ask for a report on all the “dubious” financial transactions that are somehow connected with Hong Kong. But this is unlikely to help them to prohibit the use of fin-tech applications or to prevent citizens from acquiring digital currencies.