According to Express, the government of China has confirmed that the country’s control over the global bitcoin exchange market has fallen from 90 percent to 1 percent.
The UK publication also noted that “experts in China fear losing control” over the cryptocurrency exchange market.
Never Was 90%, Obvious Drop to 1%
The absurdity of local experts expecting a different outcome than China’s cryptocurrency trading activity dropping by a significant margin has to be highlighted, because the government of China banned cryptocurrency trading as a whole in 2017.
In early 2018, the Chinese government tightened its ban on cryptocurrency trading by requesting local banks to prevent dealing with crypto exchanges and trading platforms.
Given that it is illegal to trade cryptocurrencies in China and crypto exchanges are not permitted to operate within the region, it is illogical to expect the trading activity of the Chinese crypto exchange market to not record a major drop.
The majority of investors in China that still continued to trade cryptocurrencies like bitcoin and ether subsequent to the ban imposed by the People’s Bank of China (PBoC) moved to the cryptocurrency market of Hong Kong.
The sudden move of millions of investors into what was once a minor crypto exchange market fueled crypto trading platforms in Hong Kong, leading major platforms to demonstrate a premium on the price of major digital assets.