$23.7 Billion In 2024! The Black Market For Crypto Is Thriving In China

Despite unprecedented government crackdowns, the underground crypto trade in China is experiencing explosive growth. In 2024, transactions via over-the-counter desks soared to $23.7 billion. This astounding resilience demonstrates the ingenuity and determination of Chinese investors to navigate an increasingly hostile regulatory environment.

The crypto market in China reaches new heights despite the crackdown!

The crypto trade in China continues to thrive despite the rigorous government efforts to suppress this activity. According to recent data, the total volume of crypto transactions in China via over-the-counter (OTC) desks reached an impressive $23.7 billion in 2024.

This figure is particularly striking when considering that the transaction volume in the second quarter of 2024 tripled compared to the same period in 2021, the year when the strict crypto ban was initially imposed.

The resilience of Chinese investors

This resilience of the crypto market in China can be attributed to several factors:

• Firstly, the demand for digital assets remains high among Chinese investors. They see crypto as an opportunity to diversify their portfolios and protect their wealth against inflation.
• Secondly, over-the-counter desks offer a certain level of discretion and flexibility, allowing investors to circumvent government restrictions.

Despite bans, Chinese investors continue to find innovative ways to access the crypto market. Decentralized trading platforms and peer-to-peer exchanges have become popular channels for crypto transactions.

Moreover, the use of VPNs and other technologies to mask the origin of transactions allows users to stay under the radar of authorities. However, this situation is not without risks. Investors operating in this underground market expose themselves to dangers such as fraud, theft, and legal penalties.

The underground crypto trade in China demonstrates the tenacity and ingenuity of investors in the face of strict regulation. While the Chinese government recently dismantled a significant underground crypto network, the demand for digital assets in China remains strong, and investors continue to take risks to participate in this dynamic market.