Market Surge Boosts Chinese Crypto Trading, OTC Desks Charging Extra

Chinese crypto traders are paying a premium price to get their hands on stablecoins, revealed cnLedger on Twitter.

As seen on two shared snapshots, over-the-counter (OTC) desks of both Huobi and OKEX are charging a significantly higher premium price for USDT tokens. Backed by USD, Tether is being sold at CNY 7 apiece, while the foreign exchange rate of $1 is only CNY 6.7.

1/ Chinese markets reveal strong buys. OTC (Over-The-Counter) trades, the almost only way to buy Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term with fiat in China, showing considerable $ premium (1 USDT = 7 CNY) over the official rate of 1 USD = 6.7 CNY. pic.twitter.com/bd0n0DGFVU

— cnLedger (@cnLedger) April 8, 2019

Say No to Crypto Trading

In September 2017, the Chinese government banned all crypto trading activities within its jurisdictions. However, crypto traders in the country found a loophole that enables them to engage in trading activities.

As purchasing stablecoins through OTC desks is allowed in China, crypto traders buy these USD-backed assets and transfer them to any exchange listing crypto against stablecoins using a virtual private network (VPN). They can then easily trade digital currencies and encash the profits in local fiat in a similar way.

“Why the USDT premium going up? After the PBoC ICO/exchange ban, the most convenient way to buy cryptos in China is to buy stable coins like USDT first using OTC, and then trade it into any cryptos you want in exchanges,” cnLedger explained in a consecutive Tweet.

The sudden demand for stablecoins among Chinese traders was boosted by the surge in crypto prices in recent days. Following a four-month dip, Bitcoin rose above $5,000 again while the total market cap of the decade-old market reached a 5-month high, according to Coinmarketcap.com.

China, before the crypto ban, was the largest crypto trading market on the globe in terms of volume. Pointing out the present situation in the country, an analyst going by the name of “Light” stated: “We are witnessing a resurgence in Chinese demand for Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. This trend in the making comes after more than a year of relative quiet, a reminder of the time when Chinese volumes were king.”