In the wake of stern regulatory pressure, Chinese Bitcoin exchanges have begun shifting their business models to adopt the ‘over the counter’ market.
Despite rumours that indicated that Chinese government may allow licensed Bitcoin exchanges to resume trading on November 1st, no such move has been announced – and now local exchanges have begun to adapt their business models in a bid to beat regulatory pressure.
OKEx and Huobi Pro have both previously announced their intent to introduce new peer-to-peer platforms that will support fiat currency transactions, including the Chinese Yuan. The bid comes as a new move to offer alternatives to local cryptocurrency investors who have been hindered by the Chinese government’s crackdown on ICOs and exchanges.
OKEx has subsequently launched its peer-to-peer platform, where the only fiat currency presently accepted on the service is the Chinese Yuan. Lennix Lai, financial market director at OKEx, recently announced that the service had received some 8,000 user applications per day since the service’s launch on November 1st.
Huobi Pro is reportedly eyeing an expansion into international markets – the company’s CEO, Lin Li, recently confirmed that the firm is seeking to establish a new trading platform in South Korea.
Local exchanges may not have to wait for much longer to resume trading within China according to state-owned news publication Xinhua, local government is considering the possibility of licensing and record-keeping cryptocurrency trades in a move that may lift the nationwide ban on cryptocurrency exchanges in the country.
According to Xinhua, Chinese government is concerned with criminal activity that may leverage cryptocurrency to perform anonymously, and that the nation might well implement a license program with strict Anti Money Laundering (AML) systems in place.
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