CryptoQuant analysts see signs of China’s return to the crypto market

Crypto transactions have been completely banned in the country since 2021

11.01.2023 - 10:10

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3 min

What’s new? Experts at CryptoQuant, a blockchain analytics company, have admitted that China is moving toward a return to the cryptocurrency market. In their opinion, this is indicated by the fact that China’s first bitcoin futures ETF (exchange-traded fund) raised $79 million during the first trading. The second indication, analysts said, was the growing volume of trading on both the spot market and the derivatives market on the OKX crypto exchange. Meanwhile, domestic exchanges have been banned in the country since 2017, and since September 2021 any cryptocurrency transactions are considered completely illegal.

3/3 There are signs of China coming back to the crypto market.- The first Bitcoin Futures ETF in China raised $79M in trading debut.- Growing volumes in both spot and derivatives markets in @okxLive Dashboard 👇https://t.co/8grPPTBVjp pic.twitter.com/IdPBm9NrYY — CryptoQuant.com (@cryptoquant_com) January 10, 2023

Situation with cryptocurrencies in China. In April 2022, local financial associations proposed a series of restrictions for NFTs because of threats of illegal financial activity. In June, the messenger WeChat began blocking accounts associated with NFTs and cryptocurrencies.

Amid the Chinese authorities’ total hostility toward cryptocurrencies, Hong Kong announced plans to ease its approach to regulating this sphere. In December, the Hong Kong authorities passed an amendment that would put cryptocurrencies on an equal footing with traditional financial institutions in terms of their licensing regime.

In January, Hong Kong Financial Secretary Paul Chan said that China’s special administrative region aims to become a regional crypto hub and would work to attract new projects from around the world.

For a look at how China’s comeback to the crypto market will affect digital assets, read an essay by former BitMEX CEO Arthur Hayes.

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