China’s underground crypto market thrives despite harsh trading ban: WSJ


Despite Beijing’s 2021 ban on crypto trading, a thriving underground market reportedly continues to operate in China. The Wall Street Journal (WSJ) reported that investors circumvent the country’s stringent regulations through informal networks through VPNs, social media, and physical trading.

China is one of the world’s most stringent regions for crypto trading. Authorities actively pursue those involved in the sector, resulting in detentions, fines, and imprisonment. However, according to the WSJ, this has not deterred some Chinese traders. Further, in an exclusive interview, Bitfarms’ Chief Mining Officer, Ben Gagnon, identified a silent return to crypto mining in the region through energy capture technology in residential housing.

How To Get Free Crypto  

The Journal cited Chainalysis data from an October report, showcasing that from July 2022 to June 2023, Chinese traders received a net of $86 billion from crypto transactions. Their trading volume on Binance reportedly reached approximately $90 billion monthly.

Some Chinese traders purportedly maintained access to accounts on foreign crypto exchanges established before the ban, using virtual private networks (VPNs) to mask their locations and allowing them to bypass geo-restrictions. Further, the Journal stated that traders in China also use social media platforms like WeChat and Telegram to engage in crypto trading, assumingly peer-to-peer. They find buyers and sellers through dedicated groups on these platforms, bypassing the need for traditional exchanges.

Physical trades are also reportedly common, particularly in inland cities like Chengdu and Yunnan. Here, enforcement is laxer, and the Journal reports that traders often meet in public spaces like cafes or laundromats to exchange crypto wallet addresses or conduct transactions through cash or bank transfers.

Despite being a former crypto trading and mining hub, China’s stance on crypto remains rigid. The country has advocated using blockchain for applications like digital identities, tracking livestock, and authenticating luxury products. However, unlike decentralized ledgers typical of web3, China insists on using private blockchains for the most part.

Coinbase Banner  

Despite bans, crypto trading persists in China, a testament to its decentralized and global nature and highlighting real-world examples of how hard it is for governments to control blockchain-based digital assets. Nonetheless, China continues to attempt to clamp down on crypto usage.

Go to Source
Author: Liam ‘Akiba’ Wright


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

Crypto Renegade http://cryptorenegade.com

Web developer with a keen interest in the disruptive potential of cryptocurrency and blockchain technology. Experienced investor in various markets, including equities, bonds, real estate, p2p lending, and cryptocurrency. Loves coming up with solid investment strategies based on objective data to mitigate emotional risk. Believes in dollar cost averaging for long term investing while keeping a small allocation in cash for larger market dips.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.