Crypto Exchanges Evades China’s Ban By Changing Domain Name

[fitload]

Despite Crypto crackdown in China, the Chinese cryptocurrency traders have managed to find a way to bypass the ban on digital assets trading in the country, South China Morning Post (SCMP) reports.

The Chinese exchanges are successfully evading the ban by reinventing themselves using new domain names under foreign identities, making them accessible to locals. Crypto investors have also found ways of buying and selling digital assets with little need for exchanges.

As the main instrument for cryptocurrency trading, Chinese residents started using Virtual private networks (VPNs) to effectively enter and exit the crypto market, and Tether tokens as an exchange medium. By activating a VPN, the traders use a platform registered outside the Chinese region and exchange digital assets to fiat and inversely.

According to the South China Morning Post, this newly adopted method has made the anti-crypto war more difficult for the Chinese government. Many local exchanges have also relocated to areas outside of mainland China which have made it extremely difficult to track and control their activities over the internet.

SCMP quoted a source close to one of the foreign exchanges who said regulators have the “technical ability to shut down VPNs” but there are currently no visible restrictions on using VPNs in China—which is a loophole for potential traders to access exchange platforms.

 Read More: https://news.bitzamp.com/