August 22, 2022
3701
0How to Buy Bitcoin in China
The leadership of China takes a tough stance toward virtual money. Cryptocurrencies and transactions with digital money are prohibited on the territory of the country.
The State Development and Reform Committee of the People’s Republic of China is the main regulator of the virtual market. In 2021, the country banned investments in mining, and then the mining of coins.
Chinese way of cryptocurrencies regulation is here.
This happened against the background of China’s leadership in the cryptocurrency sphere. Mining pools in China produced almost 50% of all BTC in the world. Now China has been overtaken by the USA, Kazakhstan, and Russia. Many companies have managed to transfer mining farms to other states with affordable electricity and loyal legislation.
So, how to buy bitcoin in China?
How to buy bitcoin anonymously? Read more here.
Legal regulation of cryptocurrencies in China
In the fall of 2021, the Central Bank of China announced a ban on all operations with cryptocurrency. According to Chinese financiers, bitcoins and altcoins spoil the economy. Among the main risks of cryptocurrencies, the Central Bank calls:
- Independence of the digital world from the traditional financial system.
- Reducing the role of regulatory and regulatory authorities.
The loud statement affected the rates of bitcoin and altcoins. The first cryptocurrency lost $180 billion of capitalization on the same day. To completely block citizens’ access to virtual money and any information on it, the Chinese government has closed well-known analytical services:
- CoinMarketCap
- TradingView
- CoinGecko, and others
They used different tools for blocking. Under pressure from the authorities, WeChat (a popular resource in China and other Asian countries) closed cryptocurrency groups. Any operations with non-interchangeable tokens (NFT) are prohibited.
At the end of 2021, China conducted surveys of residents regarding the actions of the state. The National Development and Reform Commission (NDRC) has been exploring opportunities to lift restrictions on cryptocurrency mining. Opinion leaders believe that the ban will not be lifted. The authorities want to get a database of people interested in mining.
Such a policy in China is associated with the unwillingness of the leadership to change approaches to managing the economy. China is known for its high level of control of all spheres. Decentralized networks do not fall into the developed system. The government seeks to prevent the withdrawal of capital into the digital world.
China surveillance system details are here.
How to buy bitcoin in China
Crypton Exchange
Crypton Exchange is a decentralized crypto exchange that operates without KYC authorization. The exchange began its operation in 2019. It is closely connected with the Utopia P2P ecosystem, so if the exchange domain is blocked in any country, it will be able to work on the basis of the ecosystem.
Utopia P2P is a decentralized anonymous ecosystem that does not carry out online surveillance of users, as well as a platform free from censorship and hacker attacks. The ecosystem is an arsenal of built-in tools for messaging, browsing, payment, and much more.
Learn more about Utopia P2P here.
Crypton Exchange offers to buy, sell, exchange, or withdraw available cryptocurrencies: Bitcoin, Monero, DAY, USDT. In addition, the exchange has its own cryptocurrency: Crypton (CRP) and UUSD Stablecoin. Both currencies have high development potential and the convenience of anonymous payment or savings storage.
Pluses:
- no-KYC registration
- security and privacy
- the first digital offshore to transfer money
- low commissions
- worldwide availability
- based on Utopia P2P
Minuses:
- only 6 available cryptocurrencies
Read more about Crypton Exchange’s advantages here.
Huobi
Huobi is a cryptocurrency exchange network and franchise founded in 2013 with the assistance of venture capitalists. In 2017, after the Chinese government campaigned against cryptocurrency exchanges, Huobi stops operations in the country and conducts relocation — Singapore becomes its new place of residence.
The temporary closure of Huobi and other Chinese sites caused panic in the market. Soon, the company not only successfully started operations in Singapore, but also opened branches around the world, including the USA.
The main platform, Huobi Global, is in the TOP 10 of Coinmarketcap in terms of trading volumes. About 450 trading pairs are available to traders. The exchange supports working with fiat, it also has its own token — Huobi Token (HT). The commissions are average — 0.2%, but there is an opportunity to get a discount.
Pluses:
- a wide range of trading instruments
- security — the exchange has not been hacked since 2013
Minuses:
- violation of customer privacy
- accusing the team of stealing funds from customers
In addition, the crypto community is not inclined to trust Chinese exchanges, as many of them have proven themselves badly.
Gate.io
The site has been known under the name Gate since 2017, its past name is Bter. Bter was founded in 2012 and is one of the oldest crypto exchanges in the world. Like other cryptocurrency companies, under pressure from Chinese regulators, Bter officially left the country in 2017 and rebranded.
Gate is registered in the Cayman Islands. Little is known about its owners, but it is believed that the company is managed in China.
The platform offers its users over 200 cryptocurrencies, including its own GateChain token (GT), and 380 trading pairs. Trading commissions are standard — 0.2%, there are discounts.
Pluses:
- numerous cryptocurrencies and tools
Minuses:
- repeated hacks in the past and a weak security system
- lack of information about owners and licenses
- charges Gate.io in fraud
BitMEX
BitMEX was founded in 2014 in Hong Kong and is one of the leading platforms in terms of cryptocurrency trading volumes. The current place of registration of the exchange is Seychelles. The company is headed by Arthur Hayes, a well-known financier and an active supporter of bitcoin.
The site maintains a strict listing policy. There are 8 main cryptocurrencies and 11 pairs. The bulk of trading falls on the XBT/USD pair.
XBT is a bitcoin designation, less well-known than BTC, but corresponds to international standards.
The bitcoin/dollar pair is leading not only on the stock exchange but also on the market as a whole.
Pluses:
- a comfortable trading environment
- high level of security
- an experienced team and a good reputation.
Minuses:
- no fiat support
- several supported cryptocurrencies
BitFinex
BitFinex was founded in 2012 in Hong Kong, from where it is managed until now. The place of registration is the British Virgin Islands.
The exchange is behind the Tether (USDT) stablecoin and over the past few years, it has been accompanied by scandals related to the “pumping and dumping” schemes used for this cryptocurrency, as well as failures with bank transfers, during the last of which the company allegedly lost about $900 million.
After such losses, BitFinex launched its own tokens, which are supposed to help cover the multimillion-dollar losses of users.
About 40 cryptocurrencies and 130 trading pairs are represented on the exchange. Commissions: from 0% to 0.2%. There is support for Fiat.
Among the earning tools available to users, it is worth noting lending to other traders.
Pluses:
- user-friendly interface
- a wide selection of cryptocurrencies and trading instruments
Minuses:
- the company is constantly facing lawsuits and accusations of fraud
OKCoin
OKCoin is an exchange launched in China in 2013 and aimed primarily at the Asian market. The current location is Hong Kong, the company is also registered in Cyprus, Malta, and the USA, offering services to traders from different countries. Another type of market participant targeted by OKCoin is institutional investors.
Only the main cryptocurrencies are supported, about 30 trading pairs are available. Commissions — up to 0.1%
Margin trading and futures trading are open.
Pluses:
- comfortable trading conditions and fiat support
- a wide range of trading instruments
Minuses:
- a few available cryptocurrencies.
The latest crypto digest is here.
