Reports in the Chinese local media indicate that authorities in the country are monitoring offshore cryptocurrency exchanges – a move likely geared towards stepping up policy enforcement prohibiting cryptocurrency trading.
Traders in the country have managed to circumvent the policies and restrictions put in place by authorities by carrying out their activities through offshore exchanges. According to a report, department in charge of supervising the country’s public communications networks has its eyes set on offshore cryptocurrency exchanges, in addition to domestic websites used by traders and investors to facilitate peer-to-peer (P2P) trades.
The department is closely monitoring all those crypto exchanges that moved from China to other countries after a fiat-to-cryptocurrency trading ban was imposed by People’s Bank of China (PBoC) last September. The ban, according to the government, was imposed to prevent citizens from falling prey to pyramid schemes, and other frauds as well as preventing money laundering through cryptocurrencies.
While authorities have been trying to put an end to trading in mainland China, things have moved to P2P and over the counter mode for such trades. Nevertheless, in many respects, authorities have been largely successful in their quest to curtail trading — even if they have failed to stamp it out entirely.
Many cryptocurrency skeptics expected that bans in China would spell doom for Bitcoin and its competitors, but those predictions have been proven wrong. After bans in China, things have shifted to South Korea and Japan, both of which now account for the highest cryptocurrency trades at the global level.