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Truthful News for Cryptocurrency

Your honest source for all things blockchain and cryptocurrency

Chinese ban on cryptocurrency proves unfruitful

Less than a month ago, China announced that they had successfully stopped all trade of Bitcoin and other cryptocurrencies that they do not approve of. Recent reports however, are showing an entirely different reality.

Despite the claims of the Chinese government and despite their laws to make the practice of using Bitcoin illegal exchanges are still working within their borders, by working outside of their borders.

According to reports, there are a multitude of exchanges such as OKCoin that moved outside the borders of China after the government banned such practices. These exchanges are used almost exclusively by Chinese citizens.

OKCoin moved its headquarters to Hong Kong with offices in Russia, Singapore, and Ireland however according to reports still operates everything out of Beijing.

The government has attempted to use its national firewall to prevent access to any exchanges of cryptocurrency however it appears that tighter and stricter measures may be soon to follow.

The thing not mentioned in any reports are the use of decentralized exchanges. As the future of cryptocurrency unfolds and more platforms like the waves platform are created that build the ability to exchange tokens and currencies directly into their blockchains, the more unlikely it is that any government will be able to stop its usage.

Waves platform uses a method known as Matcher within their blockchain which allow anonymous and secure exchange of assets issued on Waves platform and supported by Waves platform.

The transaction is confirmed on blockchain and user account balances of assets are changed according to amount and order execution price. The matcher (user recording to the blockchain) receives a matcherfee for each transaction recorded.

With blockchain based exchanges that are decentralized taking place, there will be no solutions left for countries such as china except to attempt to block access from their citizens to all outside networks, as any user can connect to any other user on the blockchain and the exchange can take place, thus making the exchange itself peer-to-peer, distributed, and decentralized.

The fact that currently centralized cryptocurrencies are already finding ways to circumvent the Chinese laws as well as the citizens proving an unwillingness to obey such laws, is showing that the governments attempts are futile and cryptocurrency will always find a way.

This is perhaps the largest defiance the Chinese government has ever seen and shows the future of socialized communistic governments may be the first of governments to truly be overtaken by cryptocurrency and blockchain technology.

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