The Chinese government could have prohibited cryptocurrency commerce and initial coin offerings (ICOs), however those failed to stop hardcore digital currency investors within the country to shop for and sell cryptos.
A report by the South China Morning Post claims that Chinese cryptocurrency investors area unit mistreatment Tether (USDT) and virtual personal networks (VPNs) to bypass the tight government rules on digital currency commerce, as well as a ban on over a hundred and twenty foreign exchanges.
The report cited information from the Shanghai Securities News, a newspaper coupled with the country’s monetary regulators, stating that Chinese traders convert their yuan to USDT to leverage what insiders describe as “client-to-client” trades, that area unit just like peer-to-peer transactions of act for Tether that typically transpire on specialised on-line platforms with bank transactions.
The theme permits traders to leverage a VPN to realize access to their desired cryptocurrency exchange and trade digital assets like in any country that enables crypto commerce. The report claims that Chinese regulators don't have the technical capability to dam these trades from gaining access to VPNs effectively.
“Chinese regulators undoubtedly have the technical ability to stop working VPNs. However, historically it takes various conversations with completely different stakeholders to achieve a accord on configuring a firewall, that lengthens the method,” the report adscititious.
Crypto exchanges have additionally found the way to skirt round the ban by transferring to different countries or reincarnating their businesses underneath completely different domain names. this permits them to continue prosperous despite the suppression obligatory since Sep last year.
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