The government of China according to reports has announced that the country’s control over the international bitcoin exchange market has declined massively.
According to Express, “experts in China fear losing control” over the cryptocurrency exchange market.
The irrationality of local experts wanting a different result than China’s cryptocurrency trading activity by a massive margin has to be listed, due to the fact that the government of China restricted cryptocurrency trading as a whole last year.
Earlier in 2018, the Chinese government stiffened its restriction on cryptocurrency trading by ordering local banks to stop dealing with crypto exchanges and trading platforms.
Because it is illegal to trade cryptocurrencies in China and crypto exchanges are not allowed to deal with in the region, it does not make sense to expect the trading activity of the Chinese crypto exchange market to not go through a significant decline.
Many investors in China that remained to trade cryptocurrencies such as bitcoin and ether after the ban made by the People’s Bank of China (PBoC) shifted to the cryptocurrency market of Hong Kong.
The abrupt shift of millions of investors into what was once a small crypto exchange market operated crypto trading platforms in Hong Kong, prompting leading platforms to show a premium on the price of leading cryptocurrencies.
Another rumor that was spread by local experts is China has control over 90 percent of the bitcoin exchange market. Several reports in 2017 have confirmed that the daily trading volumes of Chinese exchanges in early 2017 were drive-by trading as a result of no-fee trading policies that were made.
After local exchanges were asked to embark on a no-fee policy, the trading volume of bitcoin exchanges in China declined by 80 percent, signifying that China, even at its peak, merely has about 10 to 20 percent of the bitcoin exchange market.