Cryptocurrency trade in China is prohibited, but traders found many ways to bypass locks. One of the most popular is the transfer of Fiat funds in stabilin Tether and exchange directly between wallets using VPN, reports the South China Morning Post.
“Chinese regulators definitely have the technical ability to block a VPN. Although usually there are many discussions with various parties in order to reach agreement on the configuration of the firewall that is delaying the process”, — said the source.
The authors of the article refer to the data of Shanghai Securities News. It is associated with the financial regulators of the country the publication reports that Chinese traders convert yuan to Tether (USDT). The latter then received on various p2p sites.
“Last warning and monitoring foreign platforms aimed at a group of small exchanges, which are considered to be foreign, but actually working in China say that would delegate the operation of a local company”, said Terence Tsang, chief operating officer of the stock exchange of Hong Kong TideBit.
After the ban of the ICO and the subsequent actual cessation of trading digital currencies, many local exchanges brought the servers abroad, getting offshore residence. In response, financial regulators China announced its intention to block access to foreign cryptocurrency 124 sites that provide services to the population.
However, many industry participants believe that while transactions remain decentralized and peer-to-peer, regulators will not be able to completely block the access of Chinese citizens to digital assets.
Recall that in late August, the popular Chinese instant messenger WeChat started to block the accounts associated with bloccano and cryptocurrencies. Later began blocking cryptocurrency topics platform Baidu Tieba.