Crypto Traders In China Are Going The Extra Mile Via OTC Services To Acquire Bitcoin At A Premium
Chinese Traders Go The Extra Mile Via OTC Services To Acquire Bitcoin Amidst Surge
As reported on the 7th of April, the previous week’s BTC price spike has bought back its Chinese traders, who are paying a lot more than usual to do so.
While replicating price spreads from exchanges like OKEx and Huobi, common practices were observed amongst Chinese traders interested in acquiring Bitcoin.
Limited Supply Of BTC
Crypto investors have had limited options since the ban of Chinese crypto trading in 2017.
Recent methods involve the purchase of Tether, and other stablecoins being bought over the counter, and converted to other cryptocurrencies.
With the recent spike, the demand and therefore cost of these over the counter services have also skyrocketed, taking advantage of the over $1,000 increase in the Bitcoin/USD pair.
A tweet by cnLedger said that
“OTC (Over-The-Counter) trades, the almost only way to buy bitcoin with fiat in China, showing considerable $ premium (1 USDT = 7 CNY) over the official rate of 1 USD = 6.7 CNY.”
The enthusiasm among Chinese investors contradicts the countrywide government restrictions on crypto related activities.
Cointelegraph was quoted to have described the government perspective on these activities as propaganda. Coin ICOs are also outlawed within the country.
On The Other Hand
On the other hand, the regulators continually promote the use of blockchain tech in the private and public sectors.
The capital city Beijing, just last week relayed plans to register about 200 blockchain based businesses.
It has also been reported that China was the country with the highest number of blockchain based projects and Patents.