Chinese traders bypass government control on crypto trading – OTC, P2P trades

China’s Communist Party government has tightened its control of crypto trading.

Bloomberg with a piece on the greater use of over-the-counter platforms and peer-to-peer networks since domestic exchanges were banned in 2017

  • OTC platforms operated by firms including Huobi and OKEx are used to arrange trades
  • separate payments platform are used to send yuan to the seller
  • digital coins usually held in escrow by the OTC platform until the yuan payment clears, are then transferred to the buyer

Says Bloomberg:

  • Chinese regulators often have no way to connect one step of the transaction to the other.

BTC update:

China's Communist Party government has tightened its control of crypto trading.

Source

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