
Amidst a national stock market slump in China, Chinese investors are turning to cryptocurrency as a way to seek earnings and profitability. Despite the ban on purchasing and trading cryptocurrency, these investors have found ways to allocate significant portions of their portfolios to crypto. They utilize exchanges such as Binance and Okx, as well as traditional payment methods like Alipay and Wechat to purchase stablecoins from local dealers. Over-the-counter exchanges also provide access to crypto. This movement towards crypto has been confirmed by a senior executive of a Hong Kong-based exchange, who highlighted that the current market conditions on the mainland have made investment risky and uncertain, leading people to seek offshore assets. Both individuals and institutions that have suffered from the underperformance of traditional investment markets are now exploring opportunities in cryptocurrency. Chainalysis, a blockchain intelligence company, has observed that Chinese crypto numbers have significantly increased, rising to 13th place in global peer-to-peer markets in 2023, compared to 144th place in 2022. Transactions amounting to $86.4 billion were recorded between July 2022 and June 2023, surpassing trading volumes in Hong Kong during the same period.
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