The Chinese crackdown on crypto has been one of the hottest topics in the media over the past weeks and months, contributing to a deteriorating sentiment in Bitcoin and also the broad market.
Valuations tanked more than 50% as China resumed in full force to make sure cryptocurrency-related businesses no longer operate within the country.
Cryptocurrency mining had been hit the worst, an important development considering the country accounted for over half of Bitcoin’s production in the past. Companies are already adjusting to new norms, as local governments put pressure.
Chinese local governments ban mining
According to Reuters, the local government of Sichuan, the second BTC mining center in China, issued a ban for cryptocurrency mining in the second half of June. Since May, China’s State Council vowed to crack down on Bitcoin trading and mining, aiming to reduce financial risks, at a time when cryptocurrencies were posting solid gains.
Disruption or economic order as well as facilitating illegal asset transfers are two of the reasons why the Chinese government continues to treat crypto as a threat. This isn’t good news for some of the local crypto mining hubs like Inner Mongolia, Xinjiang, or Yunnan, which are now shifting operations abroad.
Mining companies moving abroad
Russia is among the countries having a significant contribution to the Bitcoin hash rate and it should be no surprise now that Chinese mining companies are moving their operations there.
Other neighboring countries like Kazakhstan, Malaysia, and Iran are also favored, considering the regulatory pressures has not yet intensified in these nations.
Even though goods and services can’t be priced in Bitcoin, Russia has decided to adopt a policy of allowing cryptocurrency trading. However, crypto regulation is expected to become more prominent across the globe and that is why investors and traders are already looking for regulated ways to get involved inthe market.
Regulatory fears make people rush into crypto trading
Until the issue of cryptocurrency regulation is in the rearview mirror, trading derivatives based on Bitcoin, Ether, and other altcoins becomes the most viable approach.
The high influx of new providers, such as Maxwise, facilitates any individual to open an account, make a deposit and start trading crypto from anywhere in the platform.
Traders can use the Maxwise trading platform to conduct proper technical analysis with the help of advanced charting, and choose from a variety of order types to get in and out of the market at the desired price.
Maxwise and other similar crypto-oriented trading platforms are now gaining traction in the retail trading sphere as they provide an opportunity to benefit from cryptocurrency volatility without having to gain physical exposure via traditional exchange platforms.
These providers are compliant with AML/KYC, operating transparently and in line with some of the highest trading standards.
Ultimately, cryptocurrency trading provides a safety net even when valuations are falling, enabling traders to take advantage of bear markets via short selling. Regardless of how the China crypto crackdown will evolve, this will continue to be a trusted way to be part of the digital asset revolution.