Russia, one of the few countries alongside China and India to have restricted crypto trading, is seeing an increase in demand for over-the-counter (OTC) investment in Traders in China and Russia are evading local restrictions by trading OTC
China, unlike Russia, has strictly prohibited the trading of cryptocurrencies. Hence, it is not legal for local residents and citizens to purchase or hold cryptocurrencies.
But, according to Hong Kong-based publication South China Morning Post, activity in the cryptocurrency exchange market of China has continued to remain active, in spite of the recent efforts of the government to eliminate connections between fintech platforms like Alipay and OTC platforms in mainland.
Financial authorities of China have made it difficult for investors in the country to allocate their holdings in yuan to digital assets. Through shell company bank accounts in Hong Kong, investors have still been able to invest in cryptocurrencies, in large amounts.
“The latest warning and potentially increased monitoring of foreign platforms is targeted at a batch of smaller exchanges that had claimed to be foreign entities, but are in fact operating in China claiming they have outsourced their operations to a Chinese company,” Hong Kong-based digital asset exchange Tidebit executive Terence Tsang Tsang said.
Even in regions like China, it has been challenging for governments to completely ban out Bitcoin and other cryptocurrencies due to the presence of offshore markets that offer services catering to cryptocurrency investors.
Analysts expect the activity of cryptocurrency investors regions like India, China, and Russia to increase consistently in the years to come, regardless of the state of policies in the three countries.
Images from Shutterstock
Follow us on Telegram or subscribe to our newsletter here.
• Join CLC’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from CryptoLiveClub? Click here.
• Open Positions at CLC: Full Time and Part Time Journalists Wanted.
Twitter Facebook LinkedIn Between September and October, Liqui.io delisted 25 token pairs. A shrill Reddit user believes that signs point…
Twitter Facebook LinkedIn Cryptocurrency mining operations in the Chinese provinces of Xinjiang and Guizhou were suspended so the government could conduct…
Twitter Facebook LinkedIn The Bitcoin Cash civil war is just days away from culminating in a contentious blockchain split, and…
Twitter Facebook LinkedIn Bitmain, the world’s largest bitcoin mining firm, has reportedly undergone a major board reshuffle ahead of its…
Twitter Facebook LinkedIn This week, the U.S. officially removed Iran from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network,…