Sep 28, 2018 at 11:00
Sep 28, 2018 at 11:00 UTC
In spite of the Ban, China’s middle Class is Investing in Crypto
China has been one of the hardcore anti-crypto nations since its government has constantly put efforts on the trading activity of the cryptocurrencies. Despite the bans and the unique ways to shut the crypto market and trading by the Chinese government the nations middle class is frequently shifting their interest towards cryptocurrencies investment. surge
Though the middle class is showing an increasing interest in digital currency investments, however, the efforts by the government have proven to be quite effective as the citizens are finding it hard to access the digital investment compared to other countries.
In a paper published by famed financial writer Wu Xiaobo, it noted that the middle class in China does not want to involve themselves in taking risks and are mainly concerned with stable financial growth. The 10% of the middle-class population taking interest in the crypto investment, in spite of the volatility and uncertainties involved with the crypto, the figure seems like an incredibly high rate of middle-class crypto ownership.
The People’s Bank of China (PBoC) recently released a warning to citizens that highlighted the dangers involved with the trading of crypto and Initial Coin Offerings (ICOs). The note from the bank stated to investors that in addition to being risky, ICOs are also “suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes and other illegal and criminal activities.”
The ICO and crypto ban success rate has concurrently reduced the global Yuan trading volume from 90% to less than 5%. The citizens are trading in crypto by the means available to them.
The use of Virtual Private Networks (VPNs) by some citizens have become popular as well as they are using it to access offshore exchanges, which allows them to access foreign domain without getting intercepted by the official’s securities.
The use of peer-to-peer transactions, where a buyer and a seller utilize cold-storage solutions to exchange fiat currency for digital currency, is another way investors have found, however, being effective these can make it hard for investors to rapidly sell their holdings.