Exchanges in China are beginning to find legal loopholes in the law that will allow them to find their way back to the lucrative Chinese market. One of the first exchanges in the country to do this was ZB Exchange, which opened its doors in November of 2017, just as Bitcoin prices began to surge.
This exchange will no doubt provide people in China with a way to take part in the crypto-coin world. The crackdown in China began in September, and most of the exchanges saw record low levels in October with most eventually closing shop.
The ZB exchange is still relatively small and comes with a warning of some glitches for investors. However, it is still a great reprieve for the Chinese. Shortly after the launch of ZB, OKEx, which was one of the major exchanges in the country before the ban, announced that it was examining legal loopholes that would allow resuming trade in China.
China is Still interested in Crypto
After the government crackdown on all exchanges, it would appear interested in crypto coins did not die. The exchange opened just as bitcoin hit the $7,000 mark before it short to almost $20,000 towards the end of December. The boost was aided by South Korea, where trading volumes had surged just as the government was mulling to ban exchanges in the country.
At the time, it was not known whether the increased interest would help boost the price of Bitcoin, as the bitcoin was on the caps of its SegWith2X hard fork. OKEx was still enthusiastic about crypto despite losing China at the time. They said they were planning to introduce futures trading that would include Ethereum classic, ethereum, and BCH. The platform announced that it would also change the fee structure for opening positions for Litecoin and Bitcoin. They announced that traders would pay 0.015% for both opening and closing a position.
Besides ZB, Huobi, which was a major exchange before the crackdown, announced that it had found a way to continue operations outside China. It has been thriving since then and even added a few new trading pairs. However, it only now works for swapping coins since trading Yuan for crypto coins went down to zero on the exchange.
Rumors Around ZB
The ZB exchange opened on November 1, after other exchanges stopped working in China. It has been rumored that the exchange operates because it has support from the government. The exchange allows anyone, including those from China to use the exchange.
However, the exchange only lists a few coins. There are only about 50 coins listed on the exchange. This is quite small compared to other exchanges where you can find hundreds of coins listed. However, it is still a welcome move that China may be allowing crypto coin exchange to proceed in some form.
To attract customer, it even had a loyalty program in place. At the time it opened, it said that profits originating from its activity during the month of December 2017, would be shared amongst its users.