USDT sell-off against yuan intensifies on crypto OTCs after China's crackdown

[RSRS]

China's intensified crackdown on crypto trading appears to have spooked some retail users into selling USDT on over-the-counter (OTC) markets on crypto exchanges.

Within a day of China releasing its toughened measures, the quotes for buying and selling USDT against the Chinese yuan on OTC merchants on Huobi, OKEx and Binance have dropped below 6.3 yuan per USDT.

As of press time, merchants on the three biggest exchanges that cater to Chinese crypto users are posting quotes for around 6.27 yuan per USDT.

Historical data seen by The Block shows that prior to China's release of the intensified measures, the quotes on these exchanges were above 6.37 yuan per USDT, which already represented a 1.5% negative premium compared to the exchange rate between the US dollar and the Chinese yuan.

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