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| January 23, 2018

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CNN

Why can’t a rich economy fund its health care?

January 14, 2018 |

A spike in winter-related illnesses in the U.K. is pushing its hospitals over the edge.
CNN.com – RSS Channel – World

Economy caps a solid year of labor market growth with a somewhat disappointing gain of 148,000 jobs

January 6, 2018 |

The U.S. labor market ended a year of solid growth on a disappointing note last month, but economists said tax cuts are set to breathe some new life into the gradually decelerating jobs recovery.

December’s gain of 148,000 net new jobs, reported Friday by the Labor Department, was well below analyst…


L.A. Times – Business

The Biggest Risk to the Eurozone’s Booming Economy: Inflation

January 4, 2018 |

For the first time in a decade, economic forecasters appear to be unambiguously optimistic about the prospects for the eurozone economy. What did forecasters miss in 2017 and what might they be missing this time?
WSJ.com: What’s News Europe

Southern California wildfires trigger mass destruction, hurting families, economy

December 26, 2017 |

In light of the Thomas Fire, here’s what you need to know about California wildfires.
FOX News

Shoppers feeling good about the economy are boosting holiday sales

December 25, 2017 |

Shoppers who are feeling good about the economy and spending more than expected on items like kitchen gadgets, toys and coats could make this the best holiday season in several years.

That’s good news for retailers, some of which have had few reasons of late to be merry. But there’s no question…


L.A. Times – Business

Tax bill runs risk of overheating an already revved-up economy, analysts warn

December 20, 2017 |

For President Trump and Republican lawmakers, economic prospects may never look better than today.

The economy is poised for what most analysts expect to be the best performance in years — a rare moment of synchronized global growth that has been lifting U.S. manufacturing and demand at home.

Mere…


L.A. Times – Business

Trump’s View of the World: Economy Is Security

December 19, 2017 |

Declaring that “economic security is national security,” President Donald Trump aimed to reframe a national debate over his domestic economic and trade policies by thrusting them into a national-security context.
WSJ.com: What’s News Asia

Delta adds bag fee on basic economy seats to Europe

December 16, 2017 |

The bare-bone fares that Delta Air Lines adopted to compete with low-cost airlines just got a bit more expensive.

Travelers flying from the U.S. to Europe or North Africa on Delta’s cheapest seats, dubbed basic economy, will have to pay $ 60 for the first checked bag and $ 100 for the second.

The…


L.A. Times – Business

Despite Warnings China’s Over the Counter Bitcoin Economy Is Booming

December 4, 2017 |

Despite Warnings China's Over the Counter Bitcoin Economy Is Booming

Bitcoin in China has deep roots as a vast majority of mining takes place in the region, and the country once accounted for the lion’s share of the world’s BTC trade volume. These days, however, renminbi and bitcoin volume coming from mainland exchanges is virtually non-existent, but there’s a whole lot more international and underground action happening within the over-the-counter (OTC) crypto-economy.

Also read: Japan Increases Lead – Approves Another Four New Cryptocurrency Exchanges

CNY/BTC Trade Volume Is Virtually Non-existent As China’s Market Action Has Moved to Hong Kong, OTC Markets, and Tether

In the past Chinese bitcoin trade volume captured the majority of global trades for quite some time, and the renminbi (¥ CNY) was usually the top currency traded with BTC. However, these days CNY represents less than 0.03 percent of the world’s bitcoin trade volume and ranks number 20 amongst all the other global currencies. Even though CNY volume is down, Chinese exchanges are still functioning internationally in places like Hong Kong according to the Bitcoin Association of HK’s founder and tech-columnist Leonhard Weese. The top three Chinese exchanges Huobi, Okcoin, and BTCC now only capture 7 percent of the global trade volume Weese explains. For instance, at the time of writing, Huobi is swapping $ 194M USD worth of BTC paired with Tether. Okcoin only accounts for $ 11M worth of BTC trades and BTCC is trading $ 146M in BTC, ETH, BCH, and ETC. The controversial Tether (USDT) medium of exchange has interestingly replaced the CNY as far as worldwide volumes by currency.

Despite Warnings China's Over the Counter Bitcoin Economy Is Booming
China used to be the #1 currency by volume for bitcoin trade but now represents #20. The CNY only captures 0.03 percent of the global share.

Over-the-Counter Dealers Reap the Benefits, But China’s Government Is Watching

Even though Chinese exchange volume is lower than in the past, and renminbi pairs are not taking place within the region  OTC trading is booming. This week Chinese Localbitcoins trades are at an all-time high outpacing the last time exchanges went on hiatus. Additionally, other OTC platforms are also seeing a surge in demand like Poim, Richfund.pe, and Coincola. These companies not only provide substantial orders of bitcoins to investors, but also contribute liquidity to the top three Chinese exchanges who are utilizing international borders as a shield. Richfund is well known as a significant bitcoin hedge fund and OTC dealer within the region and supplies funds to many institutions.

“[Richfund] makes a very large contribution for depth and volume and is a is a strategic partner of Huobi, explains CEO Lin Li on the company’s website.

However, as news.Bitcoin.com reported last month, the Chinese government doesn’t seem to appreciate the peer-to-peer markets. On November 11, China’s Central Television (CCTV-13) warned viewers of the risks involved with OTC bitcoin trades. The warning has not stopped people from trading underground via Telegram channels, Wechat, and Alipay. Chinese trade volume on the peer-to-peer platform Paxful is at an all-time high as well.

Even though there’s a lot of underground action PBOC officials seem pleased that they shut down mainland bitcoin exchanges from utilizing CNY trades. According to the regional news outlets Yicai Global the vice governor at the People’s Bank of China (PBOC) explains that the central bank was right to intervene in regard to China’s cryptocurrency economy. The central bank’s Pan Gongsheng explains;

If we didn’t shut bitcoin exchanges and crack down on initial coin offerings (ICOs) a few months ago, and if more than 80 percent of the world’s bitcoin transactions and financing activities were still taking place China, which was the case back in January, what would it be like today?

Despite Warnings China's Over the Counter Bitcoin Economy Is Booming
Localbitcoins volumes in China continue to break new records.

   Four OTC Providers Competing for China’s OTC Spillover

The top three exchanges Huobi, BTCC, and Okcoin alongside Localbitcoins, Poim, Coincola, and Richfund are also not the only businesses competing for OTC customers. Other over the counter dealers have moved into that area including Circle Financial, Gatecoin, Octagon Strategy, and the newcomer Genesis Block. The privately owned Octagon Strategy Limited says they specialize in providing digital asset liquidity offering cryptocurrencies like ethereum and bitcoin. The Hong Kong-based cryptocurrency exchange Gatecoin is receiving a lot more attention these days since Chinese exchanges ceased operations. The platform founded in 2013 caters to both retail investors and large market makers as well.    

News.bitcoin.com reported on the creation of Genesis Block in Hong Kong and how the company also helped jumpstart the Bitcoin Cash network. These OTC-centric companies have a minimum amount of how many bitcoins are required for purchase which is typically no less than $ 100,000 to $ 10Mn per order. Circle Financial had previously set up a strategic position in the region creating a Beijing-based subsidiary called ‘Circle China’ back in June of 2016. Its liquidity services arm ‘Circle Trade’ is doing quite well in the area dedicating its resources to OTC markets.

What do you think about the bitcoin and cryptocurrency situation in China? Do you think exchanges will come back and renminbi will dominate again? Or do you think China’s bitcoin dominance days as far as trade volume is concerned is over? Let us know what you think in the comments below.


Images via Shutterstock, Crypto Compare, and Coin Dance. 


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The post Despite Warnings China’s Over the Counter Bitcoin Economy Is Booming appeared first on Bitcoin News.

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