China's Ban on Crypto Trading: What was Really Restricted?

China sports a curious brand of crypto-patriotism, so it is nowhere restricting crypto coins in general.

Some believe the news of China restricting access to ICO sites and possibly trading platforms may be exaggerated worrying news. So what did China really ban or restrict?

The cryptocurrency ecosystem has grown a lot and is very complex in 2018. Exchanges are crucial, and in fact their business is booming. In addition, the activity of LocalBitcoins for China is not abating, with extremely high levels, especially at the end of last year.

Moreover, China is in the top 5 of countries trading on LocalBitcoins, and volumes accelerated even more after the September ban on ICOs. The trend tracked by SimilarWeb also shows that while other countries are seeing limited interest, in China the trend is in the reverse.

Curiously, China has relatively few full nodes, given its large territory - only around 791 nodes, while Holland sports 562 nodes. At this point, it is unknown if the Chinese government has decided to attack the node system and restrict access to the distributed Bitcoin network in any way.

NEO, TRON and Other Chinese Projects

At the same time, projects like NEO and TRON seem to feel quite secure and plot a bright future in exploiting the Chinese Internet. There has been talk of the best project receiving a form of state approval and even support.

In fact, the recent involvement of the government in the otherwise unregulated, global world of cryptocurrencies may create an exclusive crypto space for Chinese projects.

After the events in September, the crypto community is becoming more skeptical of the hawkish speech related to Bitcoin and crypto coins in general. The series of proposed bans or restrictions for now turn out to be not really serious, and have not been enforced.

What may have influence on crypto trading and exchanges are banks, which individually or as a group have the bargaining power to refuse services and hamper the actions of both exchanges and investors.