Chinese Crypto Market Recorded $86.4B in Raw Transaction Volume in a Year, Eclipsing Hong Kong

Photo of author

By BitcoinWiki News

Key Takeaways:

– Chinese investors turn to the crypto market as a safer alternative to traditional investments amidst economic downturn
– Chinese citizens finding creative ways to enter the crypto market, fueling a thriving underground industry
– Mainland investors can trade tokens like Bitcoin on platforms such as OKX and Binance, as well as engage in over-the-counter transactions
– Chinese citizens utilizing their $50,000 annual forex purchase quotas to move money into cryptocurrency accounts in Hong Kong
– Chinese crypto market has experienced a surge in activity, with its global ranking in peer-to-peer trade volume skyrocketing to 13th place in 2023
– Chinese crypto market recorded an estimated $86.4 billion in raw transaction volume between July 2022 and June 2023
– Proportion of large retail transactions ranging from $10,000 to $1 million in China is nearly twice the global average
– Underground crypto market in China thriving, with brick-and-mortar crypto exchange stores emerging in Hong Kong
– Offline shops operate with minimal regulations, enabling customers to purchase cryptocurrencies without providing identity documents
– Despite the crypto ban, Chinese officials recognize the disruptive potential of Bitcoin and endorse crypto trading in Hong Kong
– Tencent and Huawei, major Chinese tech giants, making notable strides in the Web3 space despite the country’s ban on cryptocurrency trading


1. Overview
Chinese investors are turning to the crypto market as a safer alternative to traditional investments in the face of China’s economic downturn and a sluggish stock market. Despite the government’s ban on crypto trading, Chinese citizens have found innovative ways to enter the crypto market, leading to a thriving underground industry. They are utilizing platforms such as OKX and Binance, engaging in over-the-counter transactions, and leveraging Hong Kong’s open endorsement of digital assets.

2. Crypto Market Activity
The Chinese crypto market has experienced a surge in activity, with its global ranking in peer-to-peer trade volume skyrocketing and recording an estimated $86.4 billion in raw transaction volume despite the ban on crypto trading. The proportion of large retail transactions in China is nearly twice the global average, and much of the crypto activity takes place through over-the-counter channels and informal peer-to-peer businesses in the grey market.

3. Underground Crypto Market in China
The underground crypto market in China is thriving, with brick-and-mortar crypto exchange stores emerging in Hong Kong’s business and shopping districts. These offline shops operate with minimal regulations, enabling customers to purchase cryptocurrencies without providing identity documents. Dealers facilitating digital asset purchases report daily volumes reaching millions or even tens of millions of yuan.

4. Chinese Officials’ Recognition of Bitcoin
Despite the ban on crypto trading, Chinese officials appear to recognize the disruptive potential of Bitcoin and its significant growth prospects. Their endorsement of crypto trading in Hong Kong allows China to maintain a foothold in the booming crypto business present in global financial centers such as Singapore and New York.

5. Tech Giants in China Pushing into Web3
Major Chinese tech giants like Tencent and Huawei are making notable strides in the Web3 space, despite the country’s stringent regulations on cryptocurrency trading. They are leveraging their computing resources to cater to web3 startups, similar to how they provide cloud services to established tech verticals, despite the ban on crypto trading in China.

This is sponsored by: Learn Bitcoin Option

Leave a Comment