The total trading of Bitcoin with the Chinese national currency renminbi (RMB) has dropped to less than 1% of the world’s total, as reported by the People’s Bank of China (PBoC).
The People’s Republic of China (PRC) banned all crypto-yuan trading in September 2017 under the pretext of the presumed financial risks associated with the rapid cryptocurrency market expansion. This move forced hundreds of Chinese cryptocurrency exchanges to terminate their activities or relocate to more permissive jurisdictions. Among these were such cryptocurrency trading market leaders as OKCoin, Huobi and BTCChina.
According to statistics quoted by Xinhua outlet, RMB/BTC trading reached its peak in 2016, when it accounted for more than 90% of the global volume. As noted by PBoC representatives, China had ensured a “zero-risk exit for 88 virtual currency exchanges and 85 ICO trading platforms,” since last year.
Zhang Yifeng from the Zhongchao Credit Card Industry Development Company believes that “the timely moves by regulators effectively fended off the impact of sharp ups and downs in viryual currency prices and led the global regulatory trend”.
Chinese cryptocurrency exchanges are, nevertheless, actively expanding to Bitcoin markets abroad. For instance, last week, Huobi announced the commencement of its operations in Australia.
At the same time, one of the China’s oldest cryptocurrency trading platforms BTCC (BTCChina), which seemed to fall victim to cryptocurrency trading ban, has recently announced its reopening and the launch of the tokenized reward system.