BasEx | Reuters: Bitcoin as a Safe Haven for Chinese Investors
Reuters: Bitcoin Becomes Safe Haven for Chinese Investors
01.02.2023
Reuters: Bitcoin Becomes Safe Haven for Chinese Investors

Reuters confirms the existence of a thriving underground crypto market in China, where interest in digital assets is increasing amid the country's economic problems.

Hong Kong serves as a key access point for Chinese investors to cryptocurrencies. As China's economy faces growing challenges, local investors seek ways to acquire cryptocurrency, as traditional value preservation tools lose their effectiveness.

Dylan Ran, a top financial sector manager from Shanghai, stated that he started investing in digital assets when he realized that China's stock market was weakening, calling Bitcoin a "safe haven for investment, akin to gold".

Despite the de facto ban on cryptocurrency trading in China since 2021, with the threat of fines and imprisonment, investors continue to seek ways to circumvent restrictions. According to WSJ, methods include using VPN services, social networks, and personal meetings for transactions.

Ran also added that he used cards from small provincial banks to purchase cryptocurrencies from grey market dealers, ensuring that transaction amounts did not exceed 50,000 yuan ($6978) to avoid detection.

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