Chinese investors are finding innovative ways to tap into the digital assets markets and participate in some of the year’s most profitable trends despite Beijing’s ban on cryptocurrency trading.
The government has banned crypto amid a blaze of publicity numerous times, including a 2013 ban on banks dealing in crypto, a 2017 ban on initial coin offerings and exchanges, followed by a trading and mining ban in 2021.
Despite this, accessing cryptocurrencies in the mainland isn’t that difficult, pseudonymous investor Lowell tells Magazine.
Lowell is a recent university graduate who describes herself as a full-time cryptocurrency trader. She had the option to pursue a career in her field of study but says that a “normal” job cannot match the profits she can make with crypto.
China’s cryptocurrency bans aren’t always crystal clear or effective. Though crypto trading and businesses are prohibited, there are channels for investors to partake in the global market.
Local traders say they buy and sell their cryptocurrencies to other investors via peer-to-peer trading on centralized exchanges like OKX and Binance. While China’s Great Firewall prohibits access, savvy users with VPNs can access the websites and apps they need.
Investors also seek lucrative opportunities in borderless DeFi, like using bots or hiring students to farm airdrops which has become a quasi-industry for some.
Crypto isn’t totally illegal in China
Rumors of China’s crypto ban reversal. (Mike Novogratz)
As it happens, crypto tokens are not themselves illegal in China, Robin Hui Huang, a law professor at the Chinese University of Hong Kong tells Magazine. Exchanging them also falls into a gray area.
“People can hold cryptos in China. They can also exchange cryptos for other properties, but such exchanges are not protected by law, that is, if the other party breaches the contract, no legal protection is…
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