Recently the financial authorities of China said the government is going to ban 124 foreign cryptocurrency exchanges. Thus the Chinese Crypto traders won’t be able to access foreign cryptocurrency exchanges.
Currently, According to the latest updates from SCMP Chinese crypto traders are using tether and VPN to bypass the ban imposed by the financial authorities. This way the current traders in China are trading cryptocurrency.
Most of China’s Cryptocurrency exchanges have shifted their servers overseas and transactions are done peer-to-peer and are decentralized. thus makes and its very hard for the financial authorities to stop them.
The Process of Trading Used by Chinese Crypto Traders
Crypto Traders will first convert the fiat currency to Tether. This is done because Tether is a stable cryptocurrency and after converting Fait currency to Tether then they will be able to trade it with any other cryptocurrencies.
To get this converted the traders have to either send money through a bank account or use some third payment system to send their fiat money to individuals who are selling Tether.
Once they have access to Tether, then with the help of VPN they will be able to access foreign crypto exchanges where they will trade Tether with any other cryptocurrencies.
But financial authorities are also working with some of the third party payment systems to block transactions which are related to or being used for cryptocurrency trading. Several other financial institutions in China such as Tencent and Alibaba Group’s affiliate Ant Financial, announced they are going to block and ban on accounts which are associated with cryptocurrency trading.
The Chinese crypto traders have some access to cryptocurrency trading due to the bypass using Tether and VPN. But how long will this method work and will the financial authorities be able to stop this Bypass? let’s wait and see in the upcoming updates.
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