Two years ago, on September 4, 2017, the People’s Bank of China (PBOC) shut down local cryptocurrency exchanges over concerns that unregulated assets like bitcoin allow residents to bypass strict capital controls.
Despite the formal ban, Chinese traders have continued to explore methods to trade bitcoin and similar cryptocurrencies, often by using offshore platforms registered in Singapore and Hong Kong. Interestingly, many of those platforms were operating from the mainland before the PBoC’s order forced them out. That indicates that China’s so-called crackdown on cryptocurrency exchanges merely allowed them to work from somewhere else – away from the Chinese jurisdiction.
Today is anniversary of 9/4 China crypto BAN. It may seem remotely relevant to western community now, but it was the inflection point for everybody there and has completely changed the landscape in Chinese crypto industry pic.twitter.com/ItPjgow6KJ
— Dovey Wan (@DoveyWan) September 4, 2018