Chinese traders pay extra for bitcoin via OTC desks in the middle of Crypto Market Surge

3 min read

Bitcoin's price rise (BTC) last week has prompted Chinese traders not only to return to trading, but also to pay a premium for it, a social media-based news account cnLedger reported on April 7.

Reputation of price differences from cryptocurrency exchanges Huobi and OKEx, cnLedger revealed an increasingly common practice among Chinese traders who want to acquire Bitcoin.

Since China formally prohibited cryptocurrency trading in 2017, investors had few options. Buying stablecoins such as Tether (USDT) via over-the-counter (OTC) services and converting to other cryptocurrencies has become the most important method, cnLedger noted.

Now, in the aftermath of a bullish week for Bitcoin that saw BTC / USD advance by more than $ 1,000, prices for those OTC services have risen steadily in CNY terms, meaning an increase in demand.

"Chinese markets reveal strong purchases," the resource summed up. The tweet stated:

"OTC (Over-The-Counter) transactions, the almost only way to buy bitcoin with fiat in China, shows a substantial $ premium (1 USDT = 7 CNY) above the official rate of 1 USD = 6.7 CNY."

The lively mood among Chinese investors is in stark contrast to the continuing tightening of cryptocurrency-related activities in the country. As Cointelegraph indicated, this has been extended to everything that is considered as propaganda, while associated instruments such as the initial coin offer (ICO & # 39; s) are also prohibited.

The authorities, on the other hand, continue to advocate the development of blockchain technology, both within the government and in the private sector. Last week, Beijing approved nearly 200 companies as part of new plans to register blockchain service providers.

It was previously reported that China has more ongoing blockchain-related projects than any other country in the world, in addition to the largest number of blockchain patents.

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Don Bradman

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