Chinese crypto traders massively switch to OTC platforms
Against the background of the policy of tightening the policy of the Chinese authorities in relation to the cryptosphere, local traders began to leave for OTC platforms.
As Bloomberg clarifies, the Celestial Empire has banned financial institutions and payment services from providing services for the purchase and sale of bitcoin and other coins. Tether (USDT) stablecoin is a key tool for entering the crypto sphere through OTC platforms for Chinese investors.
Chinese crypto traders massively switch to OTC platforms
Reporters found out that the exchange rate of Tether against the yuan has risen sharply since the beginning of May. OTC platforms use foreign payment services, so Chinese regulators cannot control their operation.
Beijing, increasing pressure on the cryptosphere, is trying to reduce capital flight from the country. A similar situation was observed in 2017. Then the Chinese authorities banned the activities of crypto exchanges in the country. However, such a measure has weakened the activity of local crypto traders who rushed en masse to OTC platforms.
Before the repressions of 2017, investors from the PRC provided up to 80% of trading in digital assets and controlled about 7% of the total supply of bitcoin. Despite the decline in this share over the past few years, Chinese traders still provide the lion's share of BTC trading.
It also accounts for the largest computing power in the network. That is why, after the disconnection of miners from the power supply began in the PRC, the bitcoin hash rate began to fall rapidly.
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