Underground Chinese Crypto Market Thriving + More Crypto News
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China’s stock market has been falling for three years. Hence, more and more Chinese investors are finding ways to own bitcoin (BTC) and other cryptocurrencies. They are looking for an investment safer than China’s “crumbling stock and property markets,” according to a crypto news report by Reuters.
One such investor saw his crypto investments increase by 45%. In early 2023, Dylan Run, a Shanghai-based finance sector executive, moved some of his money into crypto upon realizing the state of the Chinese economy. He said that “Bitcoin is a safe haven, like gold.”
Now, Run owns about 1 million yuan ($141,100) in crypto – half of his investment portfolio, compared with just 40% in Chinese equities.
Reuters found that
“Access to bitcoin isn’t that difficult on the mainland.”
Actually, the underground crypto market in China is thriving.
Michael Wang, a dealer who helps individuals buy crypto, claimed that,
“Daily volumes run into several million yuan or even dozens of millions.”
Given China’s total crypto ban, investors must operate in a grey area. They still manage to trade on crypto exchanges, including OKX and Binance, or through other over-the-counter channels. They can also open overseas bank accounts to buy crypto.
Reuters wrote that,
“As retail investors make a dash for cryptocurrencies, China’s brokers and other financial institutions aren’t far behind. Starved of growth opportunities at home, many of them are exploring crypto-related businesses in Hong Kong.”
The Hong Kong subsidiaries of Bank of China, China Asset Management, and Harvest Fund Management Co are
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