Chinese Crypto Giants Look for Love in New Greener Pastures

Although the recent ban of ICOs in China had very little to do with cryptocurrencies as a whole, there are operators in the country who read this as a precedent for future policy that could shake up the national crypto market.

Some of China’s exchanges and wallet services—among them OKCoin and Binance—intend totap into other Asian marketsin hopes of hedging themselves against potential volatilities exacerbated by any policy changes in their home country.

said Lennix Lai, Financial Market Director of OKEx, an exchange that has ties to OKCoin.

These exchanges don’t have to go very far to look for countries that would be friendly to their business models. Right next door they have Japan, a market that hasrecently come out of the woodwork as a crypto haven.

Its friendly policies towards cryptocurrencies like Bitcoin have given it a massive influence over trade in this particular sector, with two-thirds of trading taking place on the island. That is twice the size of the United States’ trading volume.

Japan’s agencies are more focused on ensuring that exchanges do not participate in money laundering and scandals like Mt Gox, do not happen again. All in all, regulators have been very open and cooperative with new exchanges, granting 11 new licenses last month.

Zhao Changpeng, CEO of Binance, has also thrown his hat into the ring looking for local partners based elsewhere, saying that he would even be willing to acquire an exchange.

Mike Kayamori, the head of Quoine, has just recently received an operating license in Japan. He says that there is an air of desperation among firms that want to join the Japanese market, judging from the ones he has spoken to.

We’re witnessing a financial exodus, something that often happens when a country restricts a sector of its economy. Operators in that industry will eventually leave their home countries in favor of those which offer them the possibility to operate in optimal conditions.

In a stroke of slight irony, China’s economy flourished in much the same way when policies within the United States made it difficult for some manufacturers to operate. The phrase “what goes around, comes around” seems fitting here.