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Chinese Traders Are Circumventing Cryptocurrency Ban En Masse: Report

  • Alex Morris
    📰 News

    Chinese crypto enthusiasts might be struggling, but the effect of the government’s ban on cryptocurrency trading was definitely overestimated


Chinese Traders Are Circumventing Cryptocurrency Ban En Masse: Report
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South China Morning Post reports that the infamous Chinese crackdown on crypto did not produce a desirable effect– local cryptocurrency traders will always find the way to gain access to exchanges despite the ban.

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The ban proved to be ineffective

On Aug. 23, China started putting offshore Chinese exchanges under intense scrutiny, which subsequently made their trading volume plunge by 33 percent. However, it turns out that this effort to completely block exchanges wasn’t a big success in the long run. P2P exchanges that locate their servers outside of China are still thriving.   

P2P, Tether, VPN– the starter back of a Chinese trader          

First of all, traders have to buy Tether (USDT) with Yuan. Tether is their primal choice, because this stable coin, as its name suggests, tends to be less volatile than Bitcoin. The decentralized peer-to-peer exchange only facilitates the trading process between a buyer and a seller that are usually required to fully complete their KYC before making any trades

Chinese investors who would like to buy Tether normally send money to an exchange with the help of a bank transfer, or they can simply use an online payment platform of their choice. After buying Tether, Chinese traders are able to use any crypto-to-crypto exchange by enabling VPN.


There is no way to easily identify crypto transactions

As of now, China still hasn’t issued a ban on using VPN (implying that it would be technically possible). However, the country’s authorities are already trying to prevent the aforementioned payment services from conducting crypto-related transactions. While Ant Financial (formerly known as Alipay) has pledged to block any accounts that were suspected of cryptocurrency trading, some industry experts remain skeptical about the possibility of identifying and restricting such transactions.

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It Would Take Several Seconds to Hack Every Cryptocurrency in the Nearest Future


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Blockchain is commonly known as an immutable ledger that is impossible to hack, but there is always a looming threat of quantum computers. HCASH Chief Scientist Dr Joseph Liu, who claims that every single cryptocurrency can be hacked in a matter of seconds, has come up with his own coin that won’t be threatened by quantum hackers.

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The inevitable quantum takeover     

Quantum computers are generally considered to be the Achilles’ heel of Blockchain-based cryptocurrencies, including Bitcoin. IBM has already announced its first quantum computer with Google and Intel also working in that direction in 2019.


IOTA, which is powered by DAG dubbed ‘Tangle’, is considered to be the only quantum-proof cryptocurrency on the market, but there could be yet another option – Hypercash that recently presented its post-quantum secure Ring CT protocol.    

‘If you want to use this computer to break the … normal security, it’ll take maybe 500 years to break the system. If you use a quantum computer, maybe several seconds. Hcash is trying to provide security, even in the existence of this future computer,’ – he claims during a recent interview.

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A precursor to Monero     

The aforementioned quantum-resistance cryptocurrency is based on Liu’s research paper about a ‘linkable ring signature.’  Fun fact: that paper, which was published back in 2014, was used by the creators of Monero as the basis for the flagship privacy coin.

The Ring Confidential Transaction (RingCT) allows having an external verifier without exposing who that verifier is. Liu didn’t expect the coin to produce any significant impact, but now he is eager to improve the protocol of the billion dollar currency without getting any financial gains.

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High hopes for Blockchain

Despite his gloomy prediction about the quantum takeover, Liu is still certain that the future of Blockchain is bright. He is certain that there will be an increasing number of Blockchain-related jobs that will be coupled with growing academic interest in cryptography. There is will be many use cases of Blockchain technology in different spheres of our life.

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