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Chinese Exchange Turn to Peer to Peer Trading


Nov 03, 2017 Posted /  2961 Views


Chinese Exchange Turn to Peer to Peer Trading

Government Crackdown on Bitcoin Exchanges

Following to closure of all Bitcoin and other cryptocurrency exchanges across china, many exchange platform shifted their equipment to location outside the country. While remembering the important market back at home some of the exchanges set up peer to peer trading platforms to continue trading in China. According Lennix Lai, financial Market Director at Okex, a Bitcoin trading platform once operating in China, the government is trying to Break the centralized exchange book trading model which is mostly used among the companies in the cryptocurrency industry. He cites that the unpredictable regulations in some some countries brings uncertainties in the crypto market thus the adoption of P2P trading model.

The Aftermath of the Crackdown

Although China was seen as one of the world’s most significant Bitcoin market the government closure of Bitcoin exchanges leading to reduced Bitcoin activity in the country doesn't seem to have affected Bitcoin much. Prices stilled continued rising reaching new records more than 3 times. On the harshness soon by the Chinese government against Bitcoin mr Sebastian Quinn-Watson, of Blockchain Global, a bitcoin exchange operator said,

“Bitcoin protocol does not Need Government acceptance, Countries can try to Ban Bitcoin if they want but the people will still continue using Bitcoin if there is need or wants for it”

Mr. watson Believes that the harsh government reaction is a response to the  high performance Bitcoin has had in 2017 and thinks it's a temporary reaction from regulators which is going to fade out. On the other hand he thinks the success of ICOs in raising Millions of dollars in investment funds to start up companies is also a contributing factor to the final Bitcoin ban in China. The feared  the Billions of dollars being raised through ICOs would cause an effect on the economy such as market crush. He continued saying he expects the regulators to ease on Bitcoin and cryptocurrency as soon as possible.

Reaction from the Bitcoin Traders

A Lot of the major Bitcoin exchanges once operating in china relocated in other cryptocurrency Friendly countries like Japan, Singapore, Hong Kong and south Korea. Some exchanges decided to remain in China but scaled down their operation and continue trading p2p. This is done mostly through smartphone applications like telegram and other specific applications designed for such purposes. Localbitcoin has become another andy option if not the best available for buying and selling Bitcoin in china, many exchanges in china resorted to localBitcoin so as they could still remain operating in the country. Many traders however are still optimistic that soon the government will put in place the necessary regulation and Bitcoin trading will be restored back in the country. But it's still not unexpected for the government to turn around anytime soon and restore Bitcoin trading in china.

 

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Tags: bitcoin cryptocurrency icos bitcoin exchanges Bitcoin in china P2P trading Bitcoin trading Localbitcoin trading in china

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