More

    Russia, China and India Crypto Limitations Cause OTC Bitcoin Trading Volumes to Rise

    Similar To China, Bitcoin OTC Trading Is On The Rise In Russia

    Despite having prohibited cryptocurrency trading, the demand for over-the-counter digital asset investments in Russia has been intensifying of late.

    Apparently, the daily trading volume for established cryptos such as BTC and ETH can peak at $50 million. While this figure is a small fraction of the typical crypto exchange trading volumes, is of significance due to the ambiguity of Russia’s crypto regulatory space. As of now, Russians are allowed to invest in digital assets. However, the source of the crypto assets must be legitimate. According to Aleksei Karpenko, a senior Russian lawyer, investors are permitted to carry out transactions that are not explicitly prohibited by the state.

    Ambiguous Regulations

    The sluggishness in the development of Russia’s crypto space is heavily attributed to the absence of relevant regulatory framework. Though citizens can freely invest in cryptos, companies have reservations due to the lack of clarity in the regulations. Moreover, this ambiguity is expected to persist for the near future, especially after the postponement of 3 bills seeking to introduce crypto regulations. The government-drafted bills are scheduled for approval at the end of the year.

    Since they depend on global cryptocurrency exchanges, the Russian OTC platforms charge high commission rates which go up to 2%. As a result, these enterprises make profits worth thousands of dollars on a daily basis, despite having a low number of active customers.

    China Following Suit?

    Unlike Russia, China’s ban on cryptocurrency trading cuts across all types of transactions. Therefore, Chinese locals can neither buy nor hold digital currencies. Nevertheless, the Hong Kong-based South China Morning Post recently reported that Chinese activity on crypto exchange platforms is still noticeable. Seemingly, the recent elimination of fintech and OTC platforms form China’s mainland has been ineffective.

    In China, it is impossible to buy cryptocurrencies using the Yuan due to the stringent laws imposed by local financial regulators. However, local investors are circumventing this by creating shell accounts in Hong Kong, enabling them to acquire digital assets easily. As per Terence Tsang Tsang, an executive ta the Hong Kong-based crypto exchange Tidebit, the increased monitoring of alien companies aims to identify small exchanges that were masquerading as foreign platforms and illegally operating within Chinese territory.

    Evidently, no government can entirely abolish cryptocurrency trading within its borders. Usually, crypto enthusiast in such countries direct their assets to offshore markets as alternative to unfriendly regulations. Therefore, it is highly likely that crypto trading will persist in China and Russia, irrespective of the stance adopted by the local administrations.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,366FansLike
    2,782FollowersFollow
    4,137FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Galaxy Digital's Mike Novogratz: This Is The Year For BTC Or I Might ‘Hang Up My Spurs'

    Bitcoin proponent, Mike Novogratz is still “most excited” about the world's leading cryptocurrency but “if it doesn't go all out by the end of...

    National Internet Finance Association of China Warns Against Manipulative Crypto Exchanges

    The National Internet Finance Association of China(NIFA) has issued a warning for investors who have been associated with the crypto-verse about the growing risks...

    Cash is King in Coronavirus Ravaged Economy But Bitcoin is “Next in Line to the Throne”: Hedge Fund Manager

    Mark Yusko, the CEO at Morgan Creek Capital Management says coronavirus is unleashing a once in a lifetime downturn. Yusko appeared on CNBC’s “Trading Nation”...

    Bitcoin’s is Gold 2.0; Billionaire Chamath Palihapitiya Lays Out BTC’s Path Forward in Macro Backdrop

    In the latest episode of The Pomp Podcast, host Anthony "Pomp" Pompliano had Chamath Palihapitiya, the CEO of Social Capital as a guest who...

    Binance ‘Leak' Signals Possible Bitcoin Options Trading Launch On The Exchange

    The competition across cryptocurrency exchanges in the crypto derivatives markets is heating up to a boiling point as yet another big player hints at...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.