Who Loses, Who Wins After China’s Crackdown On Cryptocurrencies

When cryptocurrencies were launched in late 1990s it might have been just something more than a hobby for many or us, but its immense potentiality has lately started to catch eyes of mainstream financial institutions as well as professionals, and as an aftermath the world’s first Bitcoin exchange-traded fund (ETF) is learned to be getting started later this year.

The vision behind ETF is of the Winklevoss twins. They are more known for involvement in Facebook Inc.

Undoubtedly the popularity of Bitcoin has grown several folds over a decade. Prospects and clients have been showering tons and tons of questions. Financial advisors are facing tough situations answering those and taking decisions. The most common questions are whether there exists any tax or legal issues in one’s jurisdiction or how to identify and purchase such cryptocurrencies or even just what is Bitcoin trading.

In recent months China has heavily cracked down on the cryptocurrency in its territory and this has caused a good volume of it withdrawing from the virtual currency exchanges there.

Hong Kong-based bitcoin exchange Tidebit is now hoping to capitalize the capital displaced from China’s cryptocurrency markets. It is like a once-in-a-lifetime opportunity for it to expand operations as the ban will not stop Chinese investors from buying cryptocurrencies. In past few weeks a lot of mainland customers are found opening accounts at Tidebit. The game still exists and people wants to readily play it too. They may come to Hong Kong or Singapore to buy the cryptocurrencies.

Tidebit is owned by Tideisun Group in 2015 by former think tank researcher Chen Ping.

Currently Tidebit handles about 50 to 100 Bitcoin transactions daily and customer service feature operates through Whatsapp messaging app.

It is learned Tidebit is not just a trading platform, but also have a blockchain ecosystem. Though it presently deals only in Bitcoin and Ethereum, but has plans to offer more financial products to its customers.

During the period between August 19 and September 2 the trading volume on Local bitcoins in Hong Kong was at new record highs with about $5.7 million HKD.

A blockchain event in mid-September was shifted from Beijing to Hong Kong to lower the risks of being cancelled. A two-day event was organized by Chinese Bitcoin company BitKan at the Hong Kong Grand Hyatt Hotel for the Blackchain Global Summit.

If believed to Bitcoin experts the global crypto-token trading activities are now being dominated by exchanges in Hong Kong, Japan, Korea and the United States.

The money movement from China to the outer world has been additionally tightened in past few years and this made cryptocurrencies to become more popular. This lowered the value of China’s own currency.

The government released a long list of such initial coin offering trading platforms and local agencies are instructed to close down trading of those.

In early 2016 the People’s Bank of China announced to be issuing its own digital version of national currency to avoid risks associated with privately-issued cryptocurrencies.