Contrary to all prohibitions: China continues to be a crypto major power

Last year, the Chinese central bank made tabula rasa on the crypto market and banned both ICOs and crypto exchange activities in the People’s Republic. Instead of throwing in the towel, the Chinese Exchanges became creative. Today they are as influential as ever. An inventory.

China as a promising Bitcoin revolution location

September 2017 was a black month for traders, Exchanges and Token-Issuer in China. Let’s take a look back at the Bitcoin revolution: On September 4, BTC-ECHO reported for the first time on the ban of all ICOs in the People’s Republic. The market for ICOs had really gained momentum for the first time in summer and Initial Coin Offerings were considered a “killer app” in the industry. The absolute Bitcoin revolution on the part of the government was a severe blow to China’s crypto economy.

But the Chinese government went one better. In the middle of the month, all crypto-exchanges operating in China were asked to “voluntarily cease” their activities by 30 September. The Exchange BTCC, one of the world’s oldest crypto trading centres, already announced the closure as a preventive measure.

Not only the Chinese crypto market suffered from the actions of the central bank, traders and investors around the world had to watch their portfolio turn red. Many panic sales caused prices to tumble, and total market capital shrank by a good third. During China’s period of weakness, its neighbour Japan also managed to rise to become the world’s largest crypto market.

The end of the Bitcoin loophole? Not by a long shot!

However, the Chinese crypto market was neither dead nor about to die. He went rather into cover, only to come back in full strength after the passing of winter. Look here: This explains the move of the largest crypto exchanges, which transferred their operational business to the Chinese Hong Kong Special Administrative Region. OKCoin and Huobi, under the new names OKEx and Huobi Pro, expanded the Exchanges on that occasion to include crypto-fiat Bitcoin loophole trading. Previously, the platforms had only offered crypto-to-crypto exchanges.

Another Hong Kong-based exchange even rose to become the world’s leading crypto exchange in the wake of the crypto ban in China. During the price rally in December and January in particular, a large proportion of all transactions were carried out via Binance. In the first quarter of 2018, Binance made a profit of around USD 200 million, a larger profit than Deutsche Bank (USD 146 million), Germany’s largest investment bank. The company also maintains its own crypto currency on the platform, the Binance Coin (BNB). If you trade against this, you as an investor receive discounts on transaction fees in the first four years.

And BTCC, which is rich in tradition, also continues to be active. Having also moved its headquarters to Hong Kong, it recently announced its relaunch. Following the example of Binance, the company wants to offer its own token for crypto trading in the future. In addition, the crypto-fiat trade has been extended to several trading pairs. However, the newly introduced points system is truly innovative: users are rewarded with points for actions on the platform, which they can later use for discounts on the platform.

The Exchanges, an important part of the Chinese crypto economy, have thus managed to stay on the ball and make the most of their situation. This is another reason why China continues to be a haven of innovation when it comes to blockchain technology. In 2017, more than half of all blockchain-related patents came from the People’s Republic, and this year it is unlikely to be less.

In addition, there are major projects that are already playing a major role in the current global crypto economy. The TRON project around the charismatic Justin Sun not only announces cooperations in a continuous loop, but since the launch of the Mainnet at the end of June has also been able to issue real tokens. Meanwhile, NEO is preparing to challenge Ethereum as the leading platform for ICO projects. Qtum should also be mentioned here, which quickly fades into the background due to the success of the other two Chinese crypto projects.

In terms of mining, the People’s Republic is a world power anyway. Bitmain, for example, comes from China, the global market leader in the production of ASIC miners. Although the supremacy of Bitmain’s Antminer has recently been challenged by its Japanese competitor GMO, Bitmain still retains its market power for the time being. In addition, Chinese miners still account for the largest part of the computing power of the Bitcoin network – even though the Chinese government has also attempted to regulate the network.