You can stop the internet from reaching people but you cannot stop people from reaching the internet. This comes especially true for China who tried to ban crypto from citizens but they found a way. According to reports, many crypto users in China were resorting to using virtual private networks [VPN], registering foreign email addresses, and shifting assets to less centralized exchanges as a means to defy the ban.
China’s crypto ban
2021 saw China take serious opposition to cryptocurrencies and called for a blanket ban around the county. This forced out many local exchanges, while foreign exchanges were also shown the door. Binance and Huobi, two of the major crypto trading platforms were ordered to purge mainland users.
This was followed by many social media crypto groups also being terminated. Things got rough when Beijing noted that any offshore crypto platform serving its citizens will be deemed illegal.
This led the crypto exchange duo to disable transactions in the Chinese yuan. The deadline for this is December 2021, but Huobi has already halted all new user registrations from China. Additionally, the exodus hit the over-the-counter [OTC] trading and ended trading in the yuan.
Investors find a way
Per reports, users are opting for different means to gain access to crypto exchanges and other businesses. One user noted using a VPN t bypass the Great Firewall, signing up with a foreign email service, and choosing a country that does not have an identity system.
China’s judicial authorities have cleared that crypto assets were not protected by law, thus, the users were facing challenges in approaching decentralized exchanges.
But Joe likes Crypto
Although the ban has been stringent, today Alibaba’s vice-chairman shook everyone by tweeting “I like crypto.”
Joe Tsai’s confession comes at a time when it was not only difficult to operate a crypto business in China, but also to buy crypto.
Many from the crypto-sphere hailed Tsai’s views including Binance’s CEO Chang Peng Zhao as he said, “I like Joe.”
China has been firm on its stance and it will be interesting to see how the authorities react knowing Tsai’s take on crypto.