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CNLedger, a trusted source of information in China's cryptocurrency industry, revealed that OKEX would soon launch bitcoin-to-trading platform peer-to-peer (P2P) fiat (OTC)
"More OkEx (and probably, Huobi-Pro) will soon launch P2P bitcoin trades with various fiat currency carriers," CNLedger reports. "We believe that they will support the CNY and others like the USD, the JPY, they are registered outside of China and operate independently of OKCoin. They are not as practical as trade and are less safe (a lot of crooks) but it's always better than nothing. "
OKEX and Huobi-Pro not based in Hong Kong?
OKEX is headquartered in Causeway Bay, Hong Kong, as are companies such as BTCC and Huobi-Pro, which previously operated bitcoin and cryptocurrency trading platforms in China. But, as noted by CNLedger, these companies plan to launch P2P OTC markets in Hong Kong, which would allow investors to trade the Chinese Yuan (CNY) against bitcoin and other cryptocurrency.
Without the approval of the Chinese government, it would be difficult to process CNY transactions and serve Chinese customers, investors and traders. Therefore, if OKEX and Huobi-Pro launch OTC cryptocurrency markets in the coming weeks with CNY-to-bitcoin, it would probably be with the permission of the Chinese government and the People's Bank of China (BPoC).
At present, the majority of transactions in China are handled by unregulated OTC markets such as LocalBitcoins. For the Chinese authorities, it would be more advantageous to have Hong Kong-regulated companies like OKEX to process transactions rather than platforms without network administrators or intermediaries.
Earlier this month, several state-owned news publications, including Xinhua, revealed that the Chinese government was concerned about bitcoin and cryptocurrencies used by underground economies . Xinhua specifically noted that the Chinese government will soon impose "record keeping, licensing, and the anti-money laundering (AML) process," which are, in essence, cadres for the cryptocurrency market.
"Xinhua News, CN's official news agency: Virtual currencies have become the first choice of underground economies:" We will adopt zero-tolerance policies towards hidden crime under "and take action such as record keeping, licenses, AML processes, real name, limitation of large transactions " CNLedger.
As Japan and South Korea have done in recent months, it is likely that the Chinese government will introduce and enforce a stricter licensing program for cryptocurrency trading and eventually will resume cryptocurrency trading.
The re-election of Chinese President Xi Jinping will fuel the resumption of cryptocurrency
The re-election of Chinese President Xi Jinping, which should fuel the resumption of cryptocurrency trading, is expected to take place later in the year. Analysts like Jon Creasy, a Bitcoin researcher, have pointed out that the re-election of President Xi could very likely lead to renewed trade in bitcoins and cryptocurrency.
Creasy wrote:
"My prediction is as soon as President Xi Jinping is re-elected – and will be – conservative, free (er) -trade legislation will be put in place, and Bitcoin exchanges will be reinstated. In fact, I would not be surprised to see the Chinese government encourage some exchanges and cryptocurrencies once this law is passed. "Historically speaking, President Xi Jinping has been one of the biggest advocates for free markets that China has known for some time, and I expect this trend to continue. "
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