China to Close Another Crypto Trading Loophole
China is now cracking down on a trading loophole that allowed their investors to trade crypto on overseas exchanges, Bloomberg reported, citing people familiar with the matter.
Having blocked platforms that offer exchange-like services in the country, regulators are now moving to scrutinize the Chinese banks and online-payment accounts of businesses and individuals who may be trading on offshore crypto exchanges, according to the report.
Should they be found guilty of trading, the owners of these accounts would be looking at having their accounts frozen or even themselves being blocked from the domestic financial system.
This comes after a general crackdown on crypto in China – after banning ICOs, domestic crypto exchanges and, most recently, blocking platforms that offer any services even remotely resembling exchanges, some firms found ways to get around these measures.
They opened offshore platforms that would enable Chinese citizens to buy crypto via local bank and online-payment accounts, according to the sources of Bloomberg, who asked not to be identified. Now this venue of action is closed as well.
This is not the first time crypto world finds its way in post-crackdown China, as previously reported by Cryptonews.com.
Following the previous crackdowns, major Chinese exchanges such as OKEx and Huobi Pro have redirected their business development into over-the-counter (OTC) trading, which typically uses private dealers rather than centralized exchanges, as well as overseas crypto-to-crypto venues. What these new sanctions mean for them remains to be seen, but speculations abound.
However, buying crypto in spite of obstacles has been a topic of debate for a long time, and Chinese investors who still want a piece of that cake, but prefer not to relocate to a more crypto-friendly country may still have a few options.