Despite Beijing’s growing attacks on the crypto industry, there are still some signs of life in the People’s Republic of China regarding the Bitcoin network and OTC trading.
China stepped up its ban on cryptocurrencies last week in an attempt to stifle all remaining digital asset activity within its borders. The system is specifically aimed at cryptocurrency transactions, but according to Cointelegraph research, this is nothing new: there have been at least 19 such crashes in the last decade or so.
Despite the latest move, there are still 135 bitcoin nodes operating in China, according to Bitrawr, which measures nodes by geographical location. However, this represents only 1.21% of the total 11,262 Bitcoin contracts spread across the planet. There may be more if they work behind VPNs and / or use onion routing with Tor, which hides places.
Bitcoin Nodes is a program that runs a protocol that contains all or part of a general ledger that contains the history of the transaction data. Distributed and decentralized systems are specifically designed to be difficult to turn off completely, so it can be difficult for the system to turn off the latest add-ons or those that go through Tor.
Although volumes are difficult to determine due to their opacity, OTC trading also holds its place in China, according to various reports, as does the local currency pair.
Local media Wu Blockchain reported that the Chinese currency pair RMB / USDT, which is still listed on major exchanges such as OKEx and Huobi, is trading at a higher price. He pointed to panic sales last week, which have since declined.
OKEx currently offers 6.35 yuan for $ 1, while the actual exchange rate for the dollar is 6.47, according to XE.com.
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OTC transactions are performed on a peer-to-peer network, thus avoiding the use of banks or spot markets on centralized exchanges, even though many exchanges have similar OTC branches. According to Coindance, trading volumes in China have been relatively stable since the beginning of 2020, with around 7 million CNY (approximately 1 million USD) traded weekly on Localbitcoin’s P2P platform.
Localbitcoins volume in Chinese yuan – coin dance
Bobby Lee, former CEO of China’s first cryptocurrency exchange BTCC, believes that Beijing will target OTC schedules in its next campaign. He said earlier this week that OTC platforms operated by major exchanges would be shut down or forced to exclude Chinese users. Lee spoke with Bloomberg on September 29 and added:
“They really do not want loopholes where people can use digital currency as a way to move assets offshore.”
So expect a new FOMO rally ahead of the BTC markets, which could push the price towards $ 200,000.