The Chinese cryptocurrency industry’s news source revealed that OKEX will soon launch peer-to-peer(P2P), bitcoin-to-fiat and over-the-counter(OTC) trading platforms.
According to the news source,
“More OkEx (and likely, Huobi-Pro) will soon launch P2P bitcoin trading’s with various fiat currency support. We believe they’ll support CNY and some others like USD, JPY. They register outside China and are operating independently of OKCoin. They’re not as convenient as exchanges and are less safe (many scammers). But it’s still much better than nothing”.
Are Huobi-Pro and OKEX now based in Hong-Kong?
The headquarter is OKEX is in Causeway Bay, Hong Kong including BTCC and Houbi-Pro company. Since these companies plan to launch P2P OTC markets in Hong Kong. However, it allows investors to trade the Chinese yuan(CNY) for Bitcoin and other crypto assets.
Moreover, it was not possible to process CNY trades and sever clients, without approval from the Chinese government. Therefore, after the launch, it would likely be with permission from the Chinese government and PBoC.
Presently, the popularity of trades is processing via regulated OTC markets like LocalBitcoins. According to Chinese authorities, it is beneficial to regulate OKEX company to trade instead of platforms without server intermediaries and administrators.
According to Xinhua News,
“Virtual currencies have become the top choices of underground economies. We shall adopt zero-tolerance policies towards crimes hidden underneath and take measures such as record-keeping, licensing, AML processes, real-name, limiting large transactions”.
As South Korea and Japan have done in the past months. Moreover, the Chinese government will introduce a strict licensing program for cryptocurrency exchanges. Hence, slowly resume cryptocurrency trading.
Will Re-election Fuel Cryptocurrency Trading Resumption?
Xi Jinping, Chinese President’s re-election is expected to fuel the resumption of crypto trading occurs next year. Since, with the same concern a Bitcoin researcher, Jon Creasy emphasizes the re-election of Xi.
“My prediction is this: as soon as President Xi Jinping is in reelection — and he will be — conservative, free-trade legislation will be put in place, and Bitcoin exchanges will reinstating. In fact, I wouldn’t be wondering to see the Chinese government encouraging certain exchanges and cryptocurrencies, once this legislation hits. Historically speaking, President Xi Jinping has been one of the largest advocates of free markets China and this trend to continue”.
Read Next: Chinese to slacken Bitcoin? Gordan Chang