China has been keeping a tight wrap on the cryptocurrency sector in their nation since it first rose to prominence in the beginning months of 2017.
Along with the ban they placed on initial coin offerings (ICOs) from taking place on their shores in September 2017, they have also halted most forms of crypto exchanges from offering trading services to Chinese residents.
However, it has been revealed that investors in the country have been able to successfully get around this trading ban. This means that no matter what the authorities do to crack down on the sector, it will be tough to keep up with those parties who keep evading their grasp.
While the authorities have been steadily banning crypto exchanges which have been targeting Chinese investors, they are able to circumvent these monitoring protocols by a simple trick.
These exchanges and investors are able to utilize virtual private networks in order to gain access to the overseas exchanges. They can also trade with Tether (USDT) when it comes to turning the fiat into crypto and crypto into fiat.
The exchanges themselves have been able to largely evade the authorities by consistently changing their domain names and utilizing foreign identities in order to still offer services to Chinese residents.
This makes it very hard to crack down on trading with those platforms that are not in China. This is because of the decentralized nature of the transactions which are peer to peer. While the authorities technically are able to close down VPNs, they have not been doing so to date, which allows traders the ability to access these foreign crypto exchanges.
There have been numerous platforms that have banned crypto-related matters. WeChat is a highly popular messaging app and they blocked all blockchain and crypto-related media accounts.
They claimed that these users had been in violation of the regulations of the messaging app. They have been working alongside the authorities in the country to continually monitor and prevent transactions being processed through their platform using cryptocurrencies.