The framework for conducting transactions in cryptocurrency is not illegal in China. However, it is illegal for banks and financial organizations to engage themselves in the crypto market and the crypto industry. Additionally, it is illegal for nationals to remit amounts over USD 50000 in fiat money in a single day without the government’s approval and permission.
Such stringent banking regulations and governance and the international trade wars have made sure that the transfer of money in China becomes difficult. Notwithstanding, the structure of Bitcoin and cryptocurrency in China the Chinese are every day finding ways for autonomous, permissionless and free-market exchange by the employ of cryptocurrencies and are using these ways to fight the government and economic oppression.
China has built up stringent measures to prevent its citizens from exploring or using cryptocurrencies without regulations and governance. This notwithstanding, crypto is now high on the convenience scale in the nation as the overseas exchanges can still be accessed using virtual private networks. The use of virtual private networks has made it possible even for major corporations to engage themselves in business in the obstructive cyberspace of China.
The country’s Central Bank, the People’s Bank of China is well aware of this but has done nothing, as any move to curtail this will have the resultant effect of hurting the economy. A source in the country opines that “whether or not it is legal or illegal to use a virtual private network in China it is still a very big and a grey area and the government deliberately makes it so. Many businesses in China need to use VPNs in order for them to operate.”
VPNs have enabled Chinese residents to have access to peer-to-peer, OTC trading sites and even apply economic independence freely by buying and selling bitcoin cash and other fiat currencies through a diversified payment channel. In the country, according to statistics, the trade volume on the exchange on sites continues to be steady, which goes a long way in proving that despite the government regulation and the stringent governance, crypto has and will find ways around the situation.
Other cryptocurrencies such as the stable coin tether USDT have come to be predominantly used by Chinese merchants, investors, and enthusiasts. It is noteworthy that Tether Holdings has recently launched a Chinese yuan stablecoin called the CNHT. It is critical to state that with the persistent government meddling in financial and almost everything in China, the Citizens of the country are moving towards a more autonomous way of handling and controlling their finances. This is in the form of cryptocurrency.