Crypto Facilitates Money Transfer for Restricted China

Crypto is not illegal in China, but it is illegal for banks and financial institutions to deal in crypto. It’s also illegal to send or receive over $50,000 in fiat money without government permission. Restrictive banking regulations, international trade wars, and a surveillance state in the midst of political unrest mean that transferring money can be difficult. In spite of bitcoin’s somewhat precarious legal standing within the nation, Chinese are nonetheless finding a ready avenue of non-draconian, free market exchange in all things cryptocurrency, using these channels to prosper even in the face of economic oppression.

Also Read: Gathers 56K Accounts and $200M Worth of Trades Initiated

The State of Crypto in China

Since a series of government bans in 2017, there’s been a lot of debate and misunderstanding as to the actual nature of crypto regulation in China. The long and short of it is that crypto is not illegal, per se, but is viewed as property under Chinese law. ICOs, non-OTC exchange of crypto, and brokerage services involving cryptocurrencies are all illegal. Basically, any transaction directly connecting government fiat like the yuan, and cryptocurrencies, is off-limits. Banks may not deal with bitcoin, and exchanges cannot facilitate the