Last week, Bitcoin’s price ascend has led to the return of several Chinese traders. Interestingly, they are allegedly paying a premium for doing so. The development is reported by the social media-based news account cnLedger reported on April 7.
cnLedger exposed a progressively more common practice among Chinese traders who wish to get hold of Bitcoin, by reproducing price spreads from crypto exchanges OKEx and Huobi.
It is to be noted that China formally banned crypto trading in 2017. Since then, crypto investors have had few options. cnLedger noted that purchasing stablecoins such as Tether by means of OTC services and converting them to other cryptocurrencies and digital assets has become the principal method.
Now, subsequent to a bullish week for BTC which saw BTC/USD gain by over $1,000, prices for those Over-The-Counter services have progressively risen in CNY terms, marking an increase in demand.
The resource summarized that Chinese markets divulge sturdy buys. The tweet further stated that Over-The-Counter trades, the almost only way to buy BTC with fiat in China, showing substantial dollar premium (1 USDT = 7 CNY). Notably, the official rate is 1 USD = 6.7 CNY.
Notably, the upbeat mood among Chinese investors contrasts with the ongoing crackdown on crypto-related activities in the country. As several crypto media outlets reported, this has extended to anything interpreted as indoctrination, while associated instruments such as ICOs are also outlawed.
By distinction, authorities carry on advocating the development of blockchain and DAG technology, both within the private and state sector. Moreover, Beijing approved almost two hundred firms, last week, as part of the latest plans to register blockchain service providers.
Beforehand, it was reported by various cryptocurrency media outlets that China has more crypto and blockchain-related projects underway than any other country globally. Moreover, China allegedly has the biggest number of blockchain patents.