The newest reports out of China show bad news. Bitcoin trading in Chinese currency, renminbi (RMB), has dropped to less than 1% of global totals. This is the result of the crackdown by Chinese authorities at the end of last year.
Data reported by Xinhuanet, the official mouthpiece of the Chinese government, noted about its peak. The rate of RMB/BTC trade was for more than 90% of trading volume.
Since September of last year, China has banned all ICOs. ALs, the government have stopped direct trading between RMB and virtual currencies. They have also taken a harsh stance on crypto exchanges and OTC outlets. It forced many to move out of the country.
Zero-risk Exit for Exchanges
The People’s Bank of China said the country had ensured a zero-risk exit for 88 virtual currency exchanges and 85 ICO trading platforms, since September 2017.
As noted by Zhang Yifeng, a blockchain analyst at Zhongchao Credit Card Industry Development Company,”The timely moves by regulators effectively fended off the impact of sharp ups and downs in virtual currency prices and led the global regulatory trend”.
Many of the bigger Chinese exchanges, such as Huobi, OK Coin, and Binance, were forced out of the country and have since relocated in jurisdictions with more favorable laws.
Huobi is now headquartered in Singapore. And Binance has announced plans to expand its operations to Malta. Binance is currently the largest crypto exchange in the world and is projected to bring in $1 billion in profit over the course of 2018.