How do the Chinese get around the cryptocurrency trading ban?

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Chinese People Continue to Buy Bitcoin and Other Cryptocurrencies Even as the Government Works Hard to Stop Itactivities.

Last September, the Chinese governmentclosed the country's largest exchanges (BTCC China, Huobi and OKCoin), and banned their leaders from leaving the country until the investigation was completed. However, the trading volume on the part of Chinese investors also continues to grow. So how did they get around the ban and use the Hong Kong stock exchanges?

In December, these exchanges moved to Hong Kong, wherethere is a huge demand from investors. The conditions for setting up a business in Hong Kong are pretty simple. Since the end of 2017, many Chinese investors have transferred their savings to Hong Kong bank accounts, allowing them to bypass the Chinese government's ban.

But at the same time, in Hong Kong the demand forcryptocurrency significantly exceeds supply. Due to the general excitement, the cost of cryptocurrencies on the local market is higher than the statistical average. Thus, the average price of Bitcoin was $11,500, and its price on the now Hong Kong Huobi Pro exchange exceeds $13,000. Consequently, many users, not only from China, are taking advantage of arbitrage, because by buying Bitcoin on Coinbase and selling it on the Hong Kong market, you can earn $1,200 per coin.

At the same time, Hong Kong started using popular Chinese fintech apps (Alipay, which is valued at $ 60 billion and WeChat Pay, which has also grown significantly).

Although the government and central bank of Chinarequire a report on all "suspicious" transactions related to Hong Kong, in order to prevent the Chinese from buying cryptocurrency, they will not be able to restrict the use of these applications.

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