China’s leading crypto exchanges OKCoin and Huobi, are now called OKEx and Huobi Pro. Now they are based in Hong Kong. As an alternative for Chinese investors, they now want to offer peer-to-peer-based forms of trading. In addition, trade is being extended to fiat currencies such as the Chinese yuan.
Previously, the exchanges offered only the trade of crypto currency to crypto currency. In addition, the crypto currency headquarters is now in Hong Kong instead of Beijing. The plan is now to switch between the existing system and a peer-to-peer model. In addition one wants to extend the range also internationally. Currently, for example, a platform is being opened in South Korea in cooperation with Bithumb. The exchange operators are also planning to cooperate with Singapore.
Hong Kong has special rights
As a result of the postponement of the location, the stock exchanges can escape the rights of the Chinese supervisory authorities. Hong Kong is a Special Administrative Region of the People’s Republic. Therefore, there are other rights there, the ban is cleverly bypassed. Also, it is no longer pure crypto exchanges, as now also Fiat currency can be traded.
The change of location and system is a reaction to last month’s prohibition of the People’s Republic. Initial Coin Offerings were widely banned and the crypto exchanges were forced to close. Many traders responded by avoiding foreign crypto exchanges.
According to OKEx, the yuan is currently the only currency that can be traded on the P2P platform. Lennix Lai, financial market director of OKEx, has stated that the platform has received 8000 registration requests shortly after launch.
The current development shows once more that prohibitions are not enough to curb the advance of crypto currencies. Precisely because of the heavy traceability in the vastness of the network, state authorities are hardly able to curb trade. Regulatory attempts, such as in Ukraine, seem to be much more meaningful than the current prohibitions, as is currently the case in the People’s Republic of China or in Vietnam.
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