Earlier this week, it was announced that Binance had made their first strategic investment in the Chinese market since it’s departure back in 2017 due to the ban that was implemented on cryptocurrencies by the country. However, since then China seems to be a more conducive environment for the crypto industry and is even rumored to be developing their own national cryptocurrency in response to the Libra token. Even as the launch of their national token is on the way, many crypto businesses are finding their foot within the Chinese market.
Binance has also announced on September 17, 2019 that they will be rolling out an over-the-counter service for fiat-to-crypto conversions for the Chinese yuan in October 2019 and this marks it further forray into the Chinese market.
Coming for China
Some details of new projects have been given by Yi He, Binance co-founder and chief marketing officer who specified that when the platform will launch in October 2019, it will target only the Chinese market as their current plans envision servicing the Chinese market.
Over-the-Counter services have proved to be rather profitable for Binance as they already have a platform that deals in large conversions and in April 2019, they saw $80 million in profits from the platform. Despite the ban on cryptocurrency in China, Chinese people have continued to make trades using virtual private networks and from all indications, they will likely be very supportive of this new venture.
OTC trading has also been the primary method by which Chinese crypto enthusiasts have been able to purchase crypto and this is done through the purchasing of a stablecoins such as tether using Yuan and then converting it to other cryptos.
It is rather remarkable that despite the ban put in place, the Chinese crypto community has been resilient in their use of cryptocurrency and show no signs of stopping. Only time will tell how successful this venture by Binance will be once it is fully takes root and if others will follow in their footsteps and also establish over-the-counter trading platforms as well. Also, once the Chinese national token launches next year, the crypto space within China will be even more viable.