Despite the government’s ban from 2021, Chinese investors remain steadfast in their pursuit of Bitcoin. According to Reuters, Bitcoin continues to attract significant investment from Chinese capital. report today.
Mainland China is still buying Bitcoin
Dylan Lan, a financial executive in Shanghai, epitomizes this trend. Concerned about China’s economic outlook and a weak domestic stock market, Lan ventured into Bitcoin in early 2023.
As detailed in a Reuters report, he adopted a shrewd strategy of using cash cards issued by local banks and keeping each transaction below 50,000 yuan ($6,978) to thwart regulators. evaded surveillance. In his view, “Bitcoin is a safe haven, just like gold.” Mr. Lan now allocates nearly half of his investment portfolio to bitcoin, which has soared and outperformed China’s struggling stock market.
Notably, Lan’s journey reflects a broader movement among Chinese investors who are actively seeking unconventional routes to access Bitcoin. Reuters reports that Chinese Bitcoin investors are in a regulatory gray area, as cryptocurrency trading is officially banned in mainland China and cross-border capital flows are governed by strict controls. It emphasizes that it is active in
Despite these constraints, Chinese investors continue to trade Bitcoin on offshore exchanges such as OKX and Binance, or through over-the-counter channels. Additionally, as noted in a Reuters report, Chinese nationals can use their $50,000 annual foreign currency purchase allowance, usually reserved for overseas travel or education, to fund their Hong Kong BTC accounts. It is cleverly utilized.
This phenomenon is driven by China’s growing desire for diversification amid economic uncertainty. One investor expressed this sentiment succinctly: “Given the economic situation in China, it has become necessary to explore alternative investments like cryptocurrencies.”
Bitcoin, along with other digital assets, has emerged as a sanctuary for these investors as they navigate China’s complex economic landscape. Importantly, this trend extends beyond retail investors. Chinese financial institutions are also exploring opportunities in the crypto space, as highlighted in a Reuters report.
“Facing a downturn in the stock market, weak IPO demand and other business declines, Chinese brokerages are facing compelling growth opportunities for shareholders and boards,” said an executive at a Hong Kong-based cryptocurrency exchange. We need a story,” he said, emphasizing the rationale for this.
Offshore crypto exchanges make trading easier
As the report notes, access to Bitcoin remains relatively accessible in mainland China. Offshore crypto exchanges like OKX and Binance continue to serve Chinese investors, converting the yuan into stablecoins through fintech platforms such as Ant Group’s Alipay and Tencent’s WeChat Pay. provides guidance on how to do so.
Chaineries, a cryptocurrency data platform, reveals the scope of this resilient activity. The report reveals a surge in cryptocurrency-related activity in China, despite regulatory bans.
China’s global ranking in peer-to-peer transaction volume jumped from 144th in 2022 to 13th in 2023. Remarkably, China’s cryptocurrency market recorded an estimated trading volume of $86.4 billion between July 2022 and June 2023, far exceeding Hong Kong’s $64 billion. In cryptocurrency trading. Notably, the proportion of large retail transactions between $10,000 and $1 million was almost double the global average of 3.6%.
According to Chainalysis, the move has “raised speculation that the Chinese government is enthusiastic about cryptocurrencies and that Hong Kong could become a testing ground for such efforts.”
At the time of writing, BTC was trading at $40,268.
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