A government crackdown isn’t enough to quell crypto hopefuls from buying more of their favorite asset class.
Millionaires in China are turning to over-the-counter services to trade and buy Bitcoin and other cryptocurrencies even as the local government says it would crackdown on the sector, as per a report on business outlet today.
Officials in the country said earlier this month they would hunt down and end mining activity in the country. “We will crackdown on Bitcoin mining and trading behavior,” said Vice Premier Liu He and the State Council, citing climate concerns.
Prices fell over 40% across the crypto market after those comments. But while sellers are cutting back on risk, some others are buying more cryptocurrencies via OTC platforms instead.
OTC platforms are simply an exchange platform for assets not listed on a formal exchange or traded via a private book. Such platforms allow wealthy traders or investors (these usually have higher criteria for users) to invest in markets more privately.
And business is booming. The report said the rising exchange rate between China’s yuan and the stablecoin Tether—which fell as much as 4.4% earlier this month—has increased to half of the pre-crackdown value, suggesting OTC platforms are doing big business.