Chinese Exchanges Migrating to crypto-friendly countries

Various exchanges of China are reportedly looking to migrate their services to other Asian countries that are more crypto-friendly, after the Chinese governance shutter the crypto trading and initial coin offerings (ICOs).

According to Bloomberg:

“They’re applying for licenses in Japan — solo or via partners — setting up over-the-counter shops in Hong Kong, or laying the groundwork to operate from Singapore and South Korea.”

Lennix Lai, the financial market director for Okex exchange, considers that there is enough demand. He said, “As previously one of the biggest operators in China, we feel that we have the great opportunity of competing globally.”

Licenses and Partners in Japan

Japan legalized Bitcoin can be utilized as a method of payment in April. As a result of this legalization, exchanges are needed to register with the country’s Financial Service Agency (FSA).

For the first time, the FSA offered licenses to 11 Bitcoin exchanges in Japan last month. Therefore exchanges of China looking to operate in Japan, Bloomberg noted:

“There’re at least 19 companies applying for a Japanese license.”

Some of the Chinese exchanges are applying for a Japanese license, while others are seeking for local partners.

For instance, Binance, Hong Kong-based exchange is looking for local partners along with that Bixin. The Beijing-based exchange also shown interest, the news outlet detailed.

Head of the Quoine, Mike kayamori, the Singapore-based exchange has a strong appearance in Japan. He commented, “we are discussing with all those guys. They are all desperate now.”

Also Read: China and Japan are propelling cryptocurrencies to greater success

He is about to sign a partnership deal with a Chinese partner by the end of 2017, the publication noted, and quoted him saying:

“There’s a lot of Chinese retail people reaching out to us, but we can’t handle it. So if a Chinese partner can handle all of those and they connect to us, that will be much easier.”

Reportedly, that Coincheck, one of the Japan’s largest Bitcoin exchanges receives many proposals to list tokens on its exchange.

“We are receiving bundles of requests form the startups of China and various other startups around the world requesting us to list their tokens, following Chinese government forbidden ICOs,” Kagayaki Kawabata, International Business Developer at Coincheck said Global times.

Other Friendly Shores

Japan is not only the contender for Chinese exchanges to depart to. Several Chinese investors have “utilized peer-to-peer trading over messaging apps like Telegram since the crackdown: commonly investors of China can still purchase from individuals who have access to overseas markets,” Bloomberg described.

To consume this overseas market, Bitcoin exchange Okex is establishing its over-the-counter trading platform in Hong Kong, which Lai believe strongly to engage customers primarily from Russia, China, and the U.K.

Additionally, some of the exchanges are eying to depart to Singapore as a backup plan. Recently, managing director of the MAS, Ravi Menon, saying the central bank has no plans to regulate cryptocurrencies.

The country is working hard on formalizing the payment service regulation which will influence some activities concerning to digital currencies.

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Sara K

Sara is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.

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