Chinese Crypto Market Recorded $86.4B in Raw Transaction Volume in a Year, Eclipsing Hong Kong
In the face of China’s economic downturn and a sluggish stock market, Chinese investors are turning to the crypto market as a safer alternative to traditional investments, despite the government’s crypto ban.
Chinese citizens are finding creative ways to enter the crypto market, fueling a thriving underground industry.
According to a new report from Reuters, mainland investors can trade tokens like Bitcoin on platforms such as OKX and Binance, as well as engage in over-the-counter transactions.
Chinese citizens are also utilizing their $50,000 annual forex purchase quotas to move money into cryptocurrency accounts in Hong Kong, leveraging the territory’s open endorsement of digital assets.
As a result, the Chinese crypto market has experienced a surge in activity, with its global ranking in peer-to-peer trade volume skyrocketing from 144th place in 2022 to 13th place in 2023, according to crypto data platform Chainalysis.
Despite the crypto ban, the Chinese crypto market recorded an estimated $86.4 billion in raw transaction volume between July 2022 and June 2023, surpassing Hong Kong’s $64 billion in crypto trading during the same period.
The report also revealed that the proportion of large retail transactions ranging from $10,000 to $1 million in China is nearly twice the global average of 3.6%.
Much of this crypto activity takes place through over-the-counter channels and informal peer-to-peer businesses in the grey market.
CHINESE INVESTORS TURN TO CRYPTO AMID ECONOMIC DOWNTURN
As China faces an economic downturn, investors turn to Bitcoin for safety and returns.
Crypto trading is banned in mainland China, but investors use creative methods such as using bank cards from rural banks and overseas… pic.twitter.com/iloqwFa0ga
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