- China banned bitcoin exchanges at the end of last year.
- But the trade has simply gone underground, says the CEO of China’s oldest exchange BTCC.
- CEO believes rules will eventually be relaxed, although not anytime soon.
LONDON — China’s crackdown on bitcoin has simply led to the trading going underground, according to a key player.
Bobby Lee, the founder and CEO of China’s oldest bitcoin exchange BTCC, told Business Insider: “It’s gone underground.
“The point is the demand is there. It’s not like you ban alcohol and you can’t get alcohol — alcohol is physical, you can stop it at the borders. Bitcoin you can’t stop at the borders. You ban all bitcoin but if the demand is there for bitcoin, it seeps through the borders. People are still buying person to person.”
China banned all bitcoin exchanges at the end of last year over concerns about the level of money flowing into the sector. Yuan to bitcoin volumes collapsed from around 90% of the global market to nothing over the last year and BTCC was forced to pivot to bitcoin mining and a mobile wallet product.
Lee said trade is still taking place in a less obvious way. He said: “You have centralised companies who assist the person to person buyers.
“Let’s say you want to buy and I want to sell, [but] I don’t know you. You might go to a real estate broker or a bitcoin broker and say, ‘hey I want to sell’. They’ll say, ‘ah! I know exactly who wants to buy some’. Then they introduce us and we pay them $500 as a commission and then I just buy from you.
“It could be done person to person offline, it could be online. It could be on a Read More Here