China serves as a home to the biggest community of Bitcoin miners in the world. Bitcoin along with its peers can be traded effectively in China. However, they can be traded only in the over-the-counter markets. This might be a slow procedure and many analysts are of the view that this would increase credit risk. Thus, it would be correct to say that Bitcoin in China is a popular trading procedure enabling people to easily carry out online transactions.
How are Bitcoin Prices Dependent on China?
The exchanges in China are a way in which it influences the prices of Bitcoin. Prior to banning against Bitcoin trading initiated in China, the country accounted for more than 90% of the trading volumes in different cryptocurrencies. Chinese exchanges thrived simply by charging very low fees. However, in the recent times, the Chinese exchanges have completely modified their business structure. The exchanges have started serving customers broadly. There are some of the best exchanges that regularly clock the greatest trading amount for Bitcoin. These exchanges provide consumer-to-consumer dealing of digital currency. To explain in simple terms, it means that Chinese exchanges accept foreign currency for trading in Bitcoin. The low fees charged for this service by the Chinese exchanges comes in as an added bonus.
How do exchanges in China Engage in Bitcoin Trading?
The exchanges in China regularly trade Bitcoin and have been successful in adding consumers at a very rapid pace. If estimates are to be believed, the exchanges in China generally add around 200, 000 new consumers every hour. It is only because of this reason that the exchanges in China account for one of the largest Bitcoin trading volumes. Experts are of the belief that China-based exchanges account for around 29% of Bitcoin trading volumes in a week on the whole.
Latest News about Bitcoin Trading in China
Recently, it has been in the news that China has plans of cutting odd its domestic access to exchanges and platforms that help individuals in trading digital currencies like Bitcoin. This led to the fall of Bitcoin and various other important digital currencies. Speculations around the plans of the Chinese government towards cracking down major Bitcoin trading has also contributed to major declines across the world. China is also considering cracking down access to all online services which include both homegrown and foreign services that enable individuals to trade Bitcoin and other digital currencies. These measures have been specifically designed with the objective of discouraging the use of different digital currencies altogether. However, it is still not clear how such platforms shall be defined. But, if reports are to be believed, small peer-to-peer transactions would not be closed or blocked.
Despite the fact that domestic exchanges have already been shut down in China and initial coin offerings have also been banned, the country still remains one of the biggest sources’ of Bitcoin mining in the world. Bitcoin in China comes as a boon for startups and businesses to have a strong grip on their standing in the market.