Chinese Crypto Investors Continue To Buy More Despite Recent Crackdown

By Bhushan Akolkar
Published September 28, 2021 Updated September 28, 2021
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Chinese Crypto Investors Continue To Buy More Despite Recent Crackdown

By Bhushan Akolkar
Published September 28, 2021 Updated September 28, 2021

Last week, in another major effort to crack down on crypto, the Chinese central bank – People’s Bank of China (PBoC) – declared crypto transactions as illegal. This move seems to have a little effect on local investors who continue to show the skin in the game.

Speaking to Bloomberg, some of the local investors said that the move rather turned out as a new opportunity to buy. Bobby Lee, the chief executive officer of crypto wallet firm Ballet Global Inc. said that crackdown hasn’t been as bad as many thought. “I have bought some when it dipped. a dark cloud is removed,” he said.

Other local crypto holders from China also shared similar views. A Shanghai-based crypto investor Stephen said: “These policies are not new to us, so we view them as a buy signal”. He further stated that he bought the Bitcoin dip through OTC counters. However, he added that new investors might find it difficult o deal with it. “People new to crypto might feel scared. Some of them will quit,” said Stephen.

Long Term Investors Find Workarounds

Chinese investors said that such moves won’t deter players who have been in the crypto game for a long time. These players usually find workarounds. As we already reported, post the China ban, crypto trading volumes on decentralized exchanges (DEXs) like dYdX and Uniswap shot up significantly.

Stephen told Bloomberg that while the Chinese government has mined trading and mining of Bitcoin and other digital assets it won’t put an outright ban on holding them since a decision is too difficult to enforce. “The government is smart,” he said. “They won’t issue a policy they cannot implement.”

While there was a knee-jerk reaction post the China ban, whales and institutional players like JPMorgan bought the Bitcoin dip.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
762 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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