Legal cryptocurrency trading in China is currently very difficult to access. Due to the recent restrictions of the Chinese government in the field of crypto trading, Chinese users have to look for new ways to implement it.
According to the report of South China Morning Post, traders solved this problem using VPN and Tether cryptocurrency. Chinese traders use “client to client” trades, which operate on conventional e-commerce platforms. Two users, confirming each other through the procedure “know your customer” (KYC), exchange the non-fiat currency for Tether, which is less volatile than Bitcoin. Meanwhile, the crypto exchanges only observe, reacting only in case of an error in the transaction. After Tether is received, traders use the VPN for trading on foreign exchanges.
While the servers of trading platforms are not located in China, and transactions remain decentralized, a complete ban on crypto trading remains the main problem for the Chinese government.
Moreover, experts argue that the process of banning VPN is also very long, as it takes a lot of time for negotiations with various stakeholders to reach a consensus on setting up the “Great Chinese Firewall.” Therefore, while the VPN works on the territory of China, traders will be able to exchange cryptocurrency abroad.
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