BTCC CEO Bobby Lee: Investors in China are Still Trading Crypto Even After Bitcoin Ban

At the Blockchain Open Forum in Seoul, South Korea, China's first crypto exchange BTCC CEO Bobby Lee said that investors in China are still trading cryptocurrencies even after the Chinese government imposed a ban on crypto trading in September 2017.Weird Regulatory State of Crypto in China.

While the country's government officially banned cryptocurrency trading 10 months ago to prevent the outflow of the Chinese yuan to other major economies, the government has been supporting local blockchain projects and public blockchain protocols like Ethereum ever since.

Merely two months after the investment of the Hangzhou government in a billion dollar blockchain fund, China Central Television, a state television network controlled by the government, reported that the blockchain has the potential to become 10 times the value of the Internet with wording that demonstrated absolute certainty from the Chinese government about the long-term success of the blockchain.

For speculators and investors outside of the Chinese cryptocurrency market, the government's support towards blockchain projects and its antipathy for cryptocurrency trading may be difficult to evaluate.

Bobby Lee, the CEO of BTCC, said at the Blockchain Open Forum that the ban on cryptocurrency trading imposed by the Chinese authorities can be attributed to the idea that the value of major digital assets is currently overvalued and an outright ban on trading would cause the price of cryptocurrencies to decline.

Lee also revealed that many investors and traders within China are still initiating cryptocurrency trading, adding that the volume of cryptocurrencies in China continues to remain high after the ban.

In February 2018, Hong Kong-based mainstream publication South China Morning Post reported that the Chinese government ordered its banks to completely stop cryptocurrency trades by cutting out services to exchanges.

The report of SCMP referred to the statement of People's Bank of China, the country's central bank, that the majority of investors in China moved to markets like Hong Kong to continue investing in cryptocurrencies.

"To prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs. ICOs and virtual currency trading did not completely withdraw from China following the official ban after the closure of the domestic virtual currency exchanges, many people turned to overseas platforms to continue participating in virtual currency transactions".

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