The Freewallet Family is happy to share another deep dive into Crypto Geography via CryptoGlobe. CryptoGlobe is a trusted source of blockchain news, business-related articles and daily market analysis reports. Here is a sneak peek of the article written by our head of PR Solomon Brown, investigating cryptocurrency regulations in China.
Cryptocurrency Regulation in China
Due to regulations introduced in the last year, Bitcoin is teetering on the edge of getting banned and the Celestial Empire is no longer the king of the crypto jungle.
In 2019, President Xi Jinping declared Beijing’s support for blockchain technology which it values separately from digital currency. In the aftermath of Xi’s remarks China cracked down on crypto, trying to regulate – if not ban – cryptocurrency exchanges, BTC transactions and all things crypto in the country.
Within a month, China has gone so bearish on crypto that the situation is starting to resemble the country’s 2017 trading ban.
How the Chinese Use Cryptocurrency
Despite the Great Chinese Firewall, which normally blocks access to such services, the Chinese actively use crypto exchanges thanks to Virtual Private Networks (VPNs). OTC platforms on OKEx, Huobi or Gate.io are among the most popular methods of crypto trading in the country.
According to the Business Growth Manager of imToken, most Chinese cryptocurrency enthusiasts store their crypto in mobile wallets. Regarding foreign wallets like Mycelim, Freewallet or Jaxx, they are less popular than their Chinese counterparts.
Cryptocurrency Business and Enterprises in China
Despite the ever-growing risks, most cryptocurrency mining is still concentrated in China. The largest ASIC equipment producer Bitmain is located in Beijing and mining farms have become a township forming enterprise. The chart below shows that Chinese mining pools such as BTC.com, F2Pool and Antpool are the largest market players in the industry:
The Prospects of Cryptocurrency in China
Yes, China has a complicated relationship with cryptocurrency at the state level, however, its enthusiasm for blockchain technology is still remarkable. It is safe to say that people can expect a number of breakthroughs in blockchain technology from China, be they tied to big data, the Internet of things or even the future of cryptocurrencies.”
If you want to find out more about the current state of crypto in China click here for the full article.