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China Cracks Down on Crypto Again, Here's Who May Benefit

Tue, 28/09/2021 - 14:44
China Cracks Down on Crypto Again, Here's Who May Benefit
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Alibaba bans mining rig advertising; CoinGecko, CoinMarketCap and TradingView are blacklisted by "Great Chinese Firewall"; and Binance and Huobi shut down Chinese accounts. Here's who may make billions on this Orwellian drama.

America should not miss its chance

Every time that Chinese authorities announce another anti-crypto witchhunt, the United States is declared among the most obvious beneficiaries of this scenario. In May 2021, when China banned cryptocurrency mining, America, among others, was named the most obvious destination for exiled miners.

Bitcoin (BTC) Miners Might Be Leaving China. Is This Good or Bad?

However, in these predictions, the U.S. was mentioned together with exotic locations like Kazakhstan, Pakistan and Africa.

Nowadays, politicians and industry experts, including Senator Pat Toomey, Circle Inc. CEO Jeremy Allaire and Morgan Creek Digital's Anthony Pompliano, treat this attack as a "chance" for the U.S.

U.S. Senator Pat Toomey Sees "Big Opportunity" for the U.S. in China Crypto Ban

Sen. Toomey stressed that the U.S. can show its "structural advantage" over the Chinese authoritarian system of total control as it attempts to suppress free Internet and cryptocurrencies.

Yet another catalyst for DeFi

To comply with the latest regulatory requirements, more and more major centralized exchanges stop delievering their services to Chinese accounts. In recent days, Huobi banned Chinese traders from using the exchange, while Binance stopped new registrations from mainland China.

As such, many crypto enthusiasts will migrate to decentralized exchanges like 1Inch, dYdX and Uniswap.

In the past 24 hours, the dYdX trading volume surged almost 50% and surpassed $11 billion for the first time, while Curve Finance DeFi witnessed a 127% overnight spike, according to CoinMarketCap data.

Telegram welcomes refugees

As China restricts all businesses from providing services to cryptocurrency users, the largest Chinese social media platforms, Weibo and WeChat, are also subject to these draconian restrictions.

That is why crypto enthusiasts are leaving these platforms in favor of Telegram messenger.

Chinese journalist and insider Colin Wu also adds that this "migration" is proactive as no media services shared plans to shut down crypto-focused groups and chats.


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