Bitcoin

Is China Making a Crypto Comeback?

from Trust Nodes 5 years ago 0 0 942

It took a year and a half, but smart Chinese cryptonians may have found a way around their Central Bank’s blockade through tokenization.

A Chinese exchange, FatBTC, has suddenly risen in volumes to handle $140 million worth of BTC/CNY trading during the past 24 hours and $60 million worth for ETH/CNY.

Except it isn’t quite CNY, it’s FCNY. “FCNY to CNY is like USDT to USD,” a representative from FatBTC says. “You can deposit it by going to ‘Balances-FCNY.'”

FatBTC is technically based in Belize, a little known central American country next to Mexico. They’re Chinese, however, with the exchange recently launching FatOTC, that being Over the Counter trading.

It appears they’ve been able to secure a CNY bank account somewhere. So Chinese citizens can actually deposit CNY. Then, instead of having a number on some database that says one CNY, they get one FCNY token.eval(ez_write_tag([[580,400],'trustnodes_com-medrectangle-3','ezslot_2',143,'0']));

With that FCNY they can then buy bitcoin, eth, or one of the many cryptos and tokens on offer at the exchange. Making it a fairly direct way of bringing CNY back into the crypto market.

$BTC something to watch during this bull run, Chinese profits from their roaring stock market in recent weeks flowing into #Bitcoin. Largest Chinese exchange has more than doubled volume in past week. cc: @fundstrat @krugermacro @APompliano @cz_binance pic.twitter.com/R1vQG8iAek — Anton Pagi (@AntonPagi) March 17, 2019

We couldn’t establish very much about FatBTC, but apparently this has been operating since 2014. There are some problems, but they mainly appear to be due to cultural or time zone differences or a technical glitch here and there.

What low level front facing personnel they have, appears to be very sensitive to even being asked to comment on some suggestions that volumes are faked.eval(ez_write_tag([[468,60],'trustnodes_com-medrectangle-4','ezslot_5',144,'0']));

We could have of course tried to find someone higher up, but naturally the matter is quite sensitive considering the draconian measures taken by the Chinese government in September 2017 when they closed crypto exchanges.

Overall, based on the limited information we have, it appears Yuan has found its way back to crypto and the reason for why now might be because of some bullishness in the world’s second biggest economy:

Shanghai stocks are up some 20% since December in what looks like a very sharp V recovery after a scare of sorts between October and December.

While cryptos bore the brunt of a 2018 that was one of the worst year for investments due to strengthening USD, stocks too had a difficult year that ended with a u-turn by central bankers.

Since December thus bitcoin and most cryptos have also risen, with BTC now flirting with $4,000. That might suggest investors are back in a risk taking mood. The party, perhaps, shall indeed go on.

In China more than anywhere else. Their inflation is down to 1.5%. Yuan has strengthened slightly against the dollar. Growth is at about 6.5%. Interest rates are relatively high, however, at 4%.eval(ez_write_tag([[580,400],'trustnodes_com-box-4','ezslot_4',112,'0']));

Generally, they’re booming. The middle kingdom, in fact, never had it better. At least not for some centuries.

That means a lot of money is flowing in the world’s second biggest economy, hungry for investment opportunities.

Some of it is probably finding its way to crypto. So welcome back Chinese citizens. The show must indeed go on, and globally so.