Recent development in the Chinese crypto space hints at a shift of its capital to the crypto market of the country. Investors seem positive as the number of trading platforms will likely multiply, but it’s also being suspected that Chinese capital will take control of the country’s digital money space. Earlier this month, a co- handled Korea and China formed digital currency exchange on May 29 as Zeniex.
Zeniex has been the result of collaboration between financial experts from China and Korea. The project was invested in by Qihoo 360, the largest security solutions provider in China. Many Chinese companies have also given their inputs like China’s blockchain and coin media Bishijie and Jinse Chaijing.
Before the rise of Zeniex, another Chinese exchange named gate.io started its operations in the market earlier this month. CoinMarketCap revealed that Gate.io holds the 18th rank in the top crypto exchanges of the world.
Last month, OKCoin, world’s biggest digital currency exchange, partnered with NHN Entertainment to enter their market. World’s third largest digital currency exchange, Huobi Korea, has stepped in this market too. They recently partnered with a local company named Danal for developing identification services.
Unlike other crypto havens of the world, Korea has not launched any policies in regard to the launch of ICO and the regulation of digital currencies. As of now, there are no roadblocks for entrance in their crypto space. They may have some strict KYC and AML laws and anonymity is not welcomed in their exchanges. But simply complying with these laws does the job for most new businesses.
According to experts, if the government does not come up with gatekeepers for its crypto space quickly, Chinese investors will put in all their money in the country. It would eventually shift power in the hands of Chinese exchanges that will exploit the country’s crypto growth. Eventually, China will start dominating the crypto market while putting up a façade of strict regulations.
An official from the virtual currency exchange said, “Chinese virtual currency exchanges are not yet competitive, but they are key players in the global market. If the Korean virtual money market moves into the system and Chinese exchanges receive real name accounts in the future, the Chinese exchanges will become a big threat to Korean exchanges.”
Currently, it seems like the local government is backing digital currencies in the country. Members in their National Assembly have requested to lift the ban on Initial Coin Offerings.
The ban was launched eight months ago which ceased every activity related to ICOs in the country due to the increasing concerns of theft and consumer protection. But, now the government will likely be implementing new policies to re-start ICOs to boost the developing digital currency space.
On the other hand, China has been against digital currencies since their inception. It has banned the mining and trading of digital currencies without any exceptions. The local investors did not have any option but to invest in foreign currencies to raise their love for digital currencies.
It is to be noted that bitcoin and other altcoins are hinting towards an eventual rise in values. Market experts believe that bitcoin will surpass the $20,000 mark by the end of the year.
