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China monitors offshore cryptocurrency: local report

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China is once again intensifying its enforcement of policies banning cryptocurrency trading, while domestic traders have managed to circumvent these restrictions by accessing offshore trade.

According to a report from Shanghai's Yicai publication, the department responsible for overseeing the country's public communications networks has begun to closely monitor offshore cryptocurrency trading, in addition to the national websites used by traders and investors for facilitate exchanges. peer-to-peer transactions (P2P).

The department paid particular attention to the cryptocurrency exchanges that had previously been headquartered in mainland China, but relocated their operations in response to the prohibition of trading between cryptocurrency, which was enforced by the People's Bank of China (PBoC). September.

The government claims to have implemented these policies to prevent pyramid schemes, money laundering and other fraudulent activities related to the cryptocurrency industry.

Despite the active surveillance of these crypto-currency platforms, the authorities spent the next months struggling to maintain these rigorous policies, as small traders began trading on P2P and OTC platforms, while others has successfully opened accounts on off-shore platforms offering a conventional trading of order books.

Nevertheless, in many ways the authorities have been largely successful in reducing trade – even though they have not been able to eliminate it completely.

As CCN reported, these restrictions have plummeted Chinese renminbi-denominated (RMB) cryptocurrency trading volume from a peak of 90% to an estimated current value of less than 1% .

Many crypto-currency skeptics were expecting such a dramatic decline in trade in China to be fatal to Bitcoin and its competitors, but these predictions proved to be false.

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Indeed, this contraction in the continental RMB market did not have a lasting effect on the world's cryptocurrency markets, nor on South Korea nor Japan, and emerged as strong forces. in regional and global ecosystems.

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