Chinese Crypto Firms Unfazed by Bans, Eye Sector Innovations
Chinese exchanges never really left, but transformed - and in fact, China once again becomes the engine behind the growth of crypto.
When it comes to China, the attitudes toward crypto projects look opposed. On the one hand, strict capital controls led to the crackdown on exchanges. A ban on locally-based Initial Coin Offerings (ICOs) further cut down optimism that China would allow the proliferation of crypto.
But in fact, China remains the powerhouse of trading and new projects, transforming its stance over the past nine months. The Chinese exchange and ICO ban turned out to be a flash in the pan, swallowed by the renewed enthusiasm and the record trading and prices in December and January.
Among the survivors are the current hot exchanges, Binance, OKEx, and Huobi, which replaced trading against the Chinese Yuan for other pairings, including Tether (USDT), as well as exchange-based tokens, successfully replacing the lost liquidity.
Another giant may be returning, BTC China, or BTCC, one of the top exchanges that saw a slower transformation into a new type of marketplace:
Innovative exchanges are only one way that China will stoke the fires of the crypto world. Together with Korea, trading and liquidity are building the confidence that crypto is here to stay.
“When it comes to crypto, China is a central focal point these days for investors and entrepreneurs alike - much of the innovation, dynamism, and cash fueling advancing cryptocurrencies and blockchain emanates from this crypto epicenter,” said for Cryptovest Eiland Glover, CEO of Kowala, an autonomously stabilized cryptocurrency.
The other promise of China relates to the prominent platform coins: NEO, TRON (TRX), QTUM, and smaller projects.
“Expect to see more projects work more closely with the Chinese government to create the infrastructure — complete with thorough government oversight — required for a nation with China’s technological and geopolitical ambitions. Neo, a Chinese challenger to Ethereum, has already taken this approach with great success,” said Glover.
The recently dropping hashrate of Bitcoin also showed the influence of China - the floods in Sichuan province that wiped out ASIC farms took down the BTC hashrate from more than 44 million TH/s down to 30 million TH/s. And of course, China is the home to Bitmain, seen as the hegemon in ASIC production, way ahead of smaller companies who may have difficulties catching up as the mining arms race continues. Chinese ASIC production has boosted several blockchains who now see the inflow of new machines, and many have accepted the move to farm mining, including ZCash (ZEC), and Decred (DCR).
And the Chinese government itself is releasing a monthly rating of what it considers the most innovative crypto coins. One thing is certain - China is not looking for a way to suppress crypto, but to use it in the right way.