China is Closely Monitoring Over the Counter Bitcoin Trading After Successfully Closing Bitcoin Exchanges in the Country
Nov 08, 2017 Posted / 2429 Views
The chinese government is once again analyzing Bitcoin trading via over the Counter options some Bitcoin traders have adopted to use. In a report published last week by the National Committee of Experts on Internet Financial Security Technology the status of the over the counter Bitcoin Market in China. The committee which was established last year in august under the guidance of the ministry of Industry and Information technology is in charge of monitoring internet activities relating to national monetary policies. Using the National Internet Financial Risk Analysis Technology Platform, the committee established the volume of trade settled in Chinese Yuan at the major OTC platforms in the country.
The report classified cryptocurrency trading in two forms, intrapay and OTC trading. The report stated that OTC Trading has no fixed trade venue, rules and regulations or membership. It continued explaining that OTC comprises of mainly one on one transactions organised through private negotiations between the parties involved. In addition the report issued that a wide range of platforms like whatsapp, QQ, Slack are being used to conduct trading with payment methods ranging from Bank transfer, gift cards to third party payment personnels.
Meanwhile the chinese government were busy putting bans on Bitcoin exchanges in china other trading platforms oversea were minting all the money from china used in purchasing crypto currency including Bitcoin, the committee report pointed out. The report further explain how the ban in Bitcoin trading in the country has affected the volume of BTC-CNY trades in overseas OTC market indicating out that volume of trades increased just after the Ban was effected. Both the effects of the bans effected on February were clearly stated in the report. On the other hand the data on the intraday trading showed an opposite trend with major heights around June and July and a continuous decline in September to October.
According the data obtained from three leading Over The Counter Trading platforms, major platforms like Localbitcoins, paxful and coincola accounts for up to 70% of all over the counter trading volumes done in Chinese yuan, the report highlighted. The report analysed the Bitcoin to Chinese Yuan transaction data that are provided on these platforms.
Amidst the increasing Crack on Bitcoin and the ban on Bitcoin exchanges, over the counter trading is expected to boom in china without the coming months. At the meantime OTC is the best option for Bitcoin trading since other possibilities involves risks of financial losses. The chinese Government action is getting to the nerves of many people within the Bitcoin community as stated by this anonymous reader,
“I'd be worried about Chinese bashing of Bitcoin if it wasn't for the fact that hundreds of thousands of new subscribers are entering this new market every day OUTSIDE China. For example it's apparent to almost everyone in the third world who don't trust their banks that this is a opportunity to protect their money. Plus, they all have smartphones which is all that's needed to acquire BTC. Currently .5% of the world's population is involved with BTC. What do you think will happen as it climbs to 1%, then 5% & onwards?”
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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