The world’s largest cryptocurrency exchange in terms of volume yesterday announced the unveiling of a new platform for peer-to-peer trading for its traders in China.
China has imposed a ban on the trading of digital currency through centralized (third-party) exchanges. However, it seems that the state has no reservation against stocking and trading virtual token on a peer-to-peer basis.
Measuring the volume of over-the-counter (OTC) market is next to impossible. However, most analysts vouch that OTC is as important as trading on the exchanges, for the crypto ecosystem or is even bigger.
Launching of secure space for crypto-trading for Chinese traders is a big boost for digital currencies like Bitcoin. Setting up of this P2P platform opens a wide avenue for over 1.4 bn people residing in China into the world of cryptocurrency. At present, Chinese traders have moved around 30,000 Bitcoin on popular P2P Bitcoin marketplaces like Localbitcoins and Paxful.
As per the data published by Anacoinda, this volume of trade on P2P platforms makes China feature on the list of top five nations in the world in terms of P2P crypto trading. The volume of tokens moved by traders on such platforms stands at about $258M. The trade volume will get a boost if cryptocurrency can be easily exchanged among traders.
Injection of money into a virtual token market will lead to an even stable market, a market that is less prone to manipulation. What is worth noting is that many traders having access to the Chinese market also trade in others, which are more traditional markets. However, for most of the Chinese residents, the only short-term solution for trading digital currencies is through P2P platforms and OTC trading desks, like those being offered by Binance.