Chinese Crypto Market Recorded $86.4B in Raw Transaction Volume in a Year, Eclipsing Hong Kong

China Crypto Trading Hong Kong
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Ruholamin Haqshanas
Author Categories
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

In the face of China’s economic downturn and a sluggish stock market, Chinese investors are turning to the crypto market as a safer alternative to traditional investments, despite the government’s crypto ban.

Chinese citizens are finding creative ways to enter the crypto market, fueling a thriving underground industry.

According to a new report from Reuters, mainland investors can trade tokens like Bitcoin on platforms such as OKX and Binance, as well as engage in over-the-counter transactions.

Chinese citizens are also utilizing their $50,000 annual forex purchase quotas to move money into cryptocurrency accounts in Hong Kong, leveraging the territory’s open endorsement of digital assets.

As a result, the Chinese crypto market has experienced a surge in activity, with its global ranking in peer-to-peer trade volume skyrocketing from 144th place in 2022 to 13th place in 2023, according to crypto data platform Chainalysis.

Chinese Crypto Market Record $86B in Raw Transaction Volume

Despite the crypto ban, the Chinese crypto market recorded an estimated $86.4 billion in raw transaction volume between July 2022 and June 2023, surpassing Hong Kong’s $64 billion in crypto trading during the same period.

The report also revealed that the proportion of large retail transactions ranging from $10,000 to $1 million in China is nearly twice the global average of 3.6%.

Much of this crypto activity takes place through over-the-counter channels and informal peer-to-peer businesses in the grey market.

The underground crypto market in China is thriving, with brick-and-mortar crypto exchange stores emerging in Hong Kong’s bustling business and shopping districts.

These offline shops operate with minimal regulations, enabling customers to purchase cryptocurrencies without providing identity documents.

Dealers facilitating digital asset purchases report daily volumes reaching millions or even tens of millions of yuan.

As traditional investment opportunities dwindle and Chinese stocks and assets underperform, Bitcoin’s price has soared by 50% since mid-October.

Despite the crypto ban, Chinese officials appear to recognize the disruptive potential of Bitcoin while acknowledging its significant growth prospects.

This is evidenced by their endorsement of crypto trading in Hong Kong, allowing China to maintain a foothold in the booming crypto business present in global financial centers such as Singapore and New York.

Tech Giants in China Push into Web3 Despite Country’s Ban on Crypto

Tencent and Huawei, two major Chinese tech giants, are making notable strides in the Web3 space despite the country’s stringent regulations on cryptocurrency trading.

As reported, Tencent and Huawei exhibited their booths alongside industry professionals at the Staking Summit in Istanbul, a two-day conference featuring top minds in proof-of-stake (PoS) protocols.

Over the past year, Chinese tech giants like Alibaba, Tencent, and Huawei have been increasingly visible in various crypto events worldwide, either as official sponsors or discreet attendees.

Although their participation lies at the intersection of Web2 and web3 due to China’s cryptocurrency ban, these companies are leveraging their computing resources to cater to web3 startups, similar to how they provide cloud services to established tech verticals.

More Articles

Price Analysis
Will Trump’s Tariffs Boost Bitcoin: Down 5% Again
Arslan Butt
Arslan Butt
2025-02-08 14:39:24
Price Analysis
Solana Struggles: Price Down Almost 15% in a Week – Is It Time to Buy?
Arslan Butt
Arslan Butt
2025-02-08 13:22:54
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors