The five-nation BRICS group comprising Brazil, Russia, India, China and South Africa will work on creating a payment system based on blockchain and digital technologies, a report by Russian news agency TASS said.
Bitcoin Is Hitting All-Time Highs Around the World
Bitcoin is trading at a premium in many of the world’s currencies because of their relative weakness to the USD
China Never Completely Banned Crypto
Despite government crackdowns and widespread reports that crypto is outlawed in China, crypto trade is still very much alive. How is that possible?
Bitcoin Attracts Millions In Chinese Capital Despite Ban: Report
Chinese investors remain resolute in their pursuit of Bitcoin, despite the government’s ban since 2021. Bitcoin continues to attract substantial investment from Chinese capital, as Reuters reports today.
Mainland China Is Still Buying Bitcoin
Dylan Run, a finance executive in Shanghai, epitomizes this trend. Concerned about China’s economic outlook and the sluggish domestic stock market, Run ventured into Bitcoin in early 2023.
As detailed in the Reuters report, he employed an astute strategy, utilizing bank cards issued by rural banks and keeping each transaction below 50,000 yuan ($6,978) to evade regulatory scrutiny. In his view, “Bitcoin is a safe haven, like gold.” Run has now allocated nearly half of his investment portfolio to BTC, which has surged heavily, outperforming China’s ailing stock market.
Remarkably, Run’s journey reflects a broader movement among Chinese investors who are actively seeking unconventional pathways to access Bitcoin. The Reuters report highlights that Chinese Bitcoin investors operate within a regulatory gray area, as cryptocurrency trading is officially banned in mainland China, and strict controls govern capital flows across borders.
Despite these constraints, Chinese investors persist in trading Bitcoin on offshore exchanges such as OKX and Binance, or via over-the-counter channels. Additionally, as noted in the Reuters report, Chinese citizens have ingeniously leveraged their $50,000 annual foreign exchange purchase quotas, typically reserved for overseas travel or education, to fund BTC accounts in Hong Kong.
This phenomenon is driven by a growing appetite for diversification amid China’s economic uncertainties. One investor succinctly expressed the sentiment, stating, “Given the economic climate in China, exploring alternative investments like cryptocurrencies has become a necessity.”
Bitcoin, along with other digital assets, has emerged as a sanctuary for these investors as they navigate China’s complex economic landscape. Importantly, this trend extends beyond retail investors. Chinese financial institutions are also exploring opportunities within the cryptocurrency sector, as highlighted in the Reuters report.
An executive from a Hong Kong-based cryptocurrency exchange underscored the rationale, stating, “Faced with a sluggish stock market, weak demand for IPOs, and contraction in other businesses, Chinese brokerages need a compelling growth narrative for their shareholders and boards.”
Off-Shore Crypto Exchanges Facilitate Trading
As the report observes, access to Bitcoin remains relatively accessible within mainland China. Off-shore crypto exchanges like OKX and Binance continue to offer their services to Chinese investors, providing guidance on converting yuan into stablecoins through fintech platforms like Ant Group’s Alipay and Tencent’s WeChat Pay.
Chainalysis, a cryptocurrency data platform, shed light on the extent of this resilient activity. Contrary to the regulatory ban, the report reveals that crypto-related activities in China have surged.
China’s global ranking in terms of peer-to-peer trade volume skyrocketed from 144th in 2022 to 13th in 2023. Astonishingly, the Chinese crypto market recorded an estimated $86.4 billion in transaction volume between July 2022 and June 2023, far surpassing Hong Kong’s $64 billion in crypto trading. Notably, the proportion of large retail transactions, ranging from $10,000 to $1 million, nearly doubled the global average of 3.6%.
According to Chainalysis, the developments “have created speculation that the Chinese government may be warming to cryptocurrency and that Hong Kong may be a testing ground for these efforts.”
At press time, BTC traded at $40,268.
Bitcoin Unphased by China’s Stimulus Plan
Hong Kong’s Hang Seng Index and the CSI 300 both responded to Beijing’s plan to reboot China’s domestic stock market, but bitcoin remains in the red.
China’s Illegal Crypto Activities Are Taking Place in Laundromats and Cafes: WSJ
Physical trading is most popular in China’s inland, as places further from the coast are generally poorer so local governments are preoccupied with other matters.
China Vows to Clarify Web3, NFT Development Path
Moving forward, China’s Web 3 strategy would encourage the development of new business models such as NFT and accelerate the innovative application of Web3, the Ministry of Science and Technology said.
Chinese government plans for blockchain-based identity verification
The Chinese Ministry of Public Security plans to implement a blockchain-based identity verification system that it claims will help keep personal data and identity credentials safe.
China to Verify Citizens’ Identities With New Blockchain-Based Platform
The announcement follows a government rule change to require social media influencers to display their real names.
China to Verify Citizens’ Identities With New Blockchain-Based Platform
The announcement follows a government rule change to require social media influencers to display their real names.
China to Verify Citizens’ Identities With New Blockchain-Based Platform
The announcement follows a government rule change to require social media influencers to display their real names.
China to Verify Citizens’ Identities With New Blockchain-Based Platform
The announcement follows a government rule change to require social media influencers to display their real names.
AI regulations in global focus as EU approaches regulation deal
Concerns over potential misuse of AI have prompted the U.S., U.K., China, and the G7 to speed up regulation of the technology, though Europe is already way ahead.
Canaan secures new financing as revenue falls 55% in Q3
Despite a downturn in its bottom line, the company has secured a deal with an institutional investor to potentially raise $125 million in capital.
More foreign banks join China’s CBDC pilot trials
A total of four foreign banks have integrated China’s e-CNY CBDC thus far.
Bitcoin traders’ bullish bias holds firm even as BTC price dips to $37K
BTC’s correction reveals a disconnect between pro traders’ confidence and retail investors’ skepticism amid regulatory shifts.
IBM brings ‘utility-scale’ quantum computing to Japan as China and Europe struggle to compete
Experts predict the global quantum computing sector will have grown from about $930 million in 2023 to $6.5 billion by 2030, but some global markets may be better poised for growth than others.
Standard Chartered China Offering Exchange Services for Digital Yuan
Can blockchain supply the guardrails to keep AI on course?
Some believe that hybrid blockchains with both private and public aspects can solve AI’s black-box problem.
Cambodian digital currency bakong amps up use case with Alipay agreement
The CBDC-like bakong provides digital payment services in riel and the U.S. dollar. It has been steadily extending its regional scope.