Crypto Ban by China has been almost 2 years completed. Still, global crypto firms are thriving. At first, the Chinese customer base was slaughtered in many firms. Not to state that Huobi suffered a major wipeout. Now, the crypto exchanges have found ways to get out of this ban. About 8% of the exchange’s customers are Chinese according to a document submitted as part of FTX’s bankruptcy. The Chinese crypto firms have revived themselves as international business minded.
Besides Crypto Ban Chinese Customers Allowed in Borderless Metaverse
Crypto ban causes market fall of Huobi. Chinese firms like Huobi have found a protective space in Hong Kong. Hong Kong has emerged as one of Asia’s dominant crypto hubs. Huobi has become one of the complaint exchanges there. As per reports by Bloomberg, it fell from 21.6% in 2020 to just 4% in 2022. And in the coming months, the condition will worsen.
It has made a huge comeback after hitting. Justin Sun, a Huobi investor estimated that the business will turn a 111 million USD profit in Q2, 2023. Huobi facilitates Chinese crypto traders. Besides limiting sign-ups from the IP addresses of China, Huobi does not implement any other prevention.
China is the leading economy as we all know but it has announced that it will ban digital assets. The mining of the digital asset will lead to a severe blow to the industry. This country is basically not enthusiastic when it comes to cryptocurrency. Bitcoin has had a lot of disputes with China since its invention. Though it is not welcomed in China, it has helped Bitcoin achieve its current fame. It has provided a lot of miners and servers from China.
The government’s intention here is negative when related to cryptocurrency. They became very clear and precise by imposing a ban. The cryptocurrency ban includes crypto trading, and crypto transactions which are considered illegal activities here. Also, the services provided by offshore exchanges are not favored. The Bank of China has written on its website that bitcoin and tether are not real fiat currencies and thus not be in circulation.
Crypto mining
Crypto mining, money laundering, and excessive energy consumption are also some reasons why the crypto industry is under scrutiny. China declared tough action against crypto mining for Crypto Ban by China. It is already facing an energy crisis. According to data the country has 50% of the globe miners and a 46% share of the global hash rate. This is the majority of the computing power used in mining and processing.
Well, the cryptocurrency market is surviving without China. There is a bit of mistranslation; it really emphasizes crypto buying and selling, crypto purchasing from the crypto exchange. Private buy and sell are still allowed. It’s just that the enterprise-led exchanges that action is now deemed illegal, and is prosecuted. This is the reason that exchanges announced the stopping of registration of Chinese users.
The Caribbean nation and Huobi’s partnership is a representation of a strategic alliance. It has played a main role in delivering the TRC-20 token Dominica Coin (DMC). The kind of borderless digital environment Huobi is using to challenge China’s crypto ban. By building a digital state in Metaverse, Dominica will go beyond the geological limitation.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/08/crypto-ban-by-china-still-the-global-crypto-firms-thrive/