Deribit And OKX Getting Chinese Crypto Trader Customers Amid Ban

A data report noted that many Chinese crypto traders are still actively doing their crypto-related activities on centralized crypto exchanges.

In September 2021, China imposed a permanent ban on the crypto industry. People Bank of China imposed a full crypto blanket ban, where no one company was allowed to do any work related to crypto. While there was some room for the blockchain-related non crypto work based industry. That resulted in a huge market downfall and also an exodus of huge numbers of crypto mining companies to the US and Kazakhstan-like countries.

Similarweb, a website traffic metric provider platform, recently provided data and noted that Deribit and OKX are still getting traffic from Chinese locations. 

 Before 31 December 2021, Almost every crypto exchange like Huobi, and Binance closed their operations for China mainland users fully, to comply with the order of the People Bank of China. 

However it was very normal for the Chinese users to use Decentralized Exchanges (Dex) after the crypto ban announcement but it was something strange, that users are showing activities on centralized exchanges. 

Few reports noted that it may be possible because of the loose security check oe  weak KYC process.

A few months ago, ap report was published on the increment in the VPN use by the Chinese users. The report noted that almost 80% of the crypto investors were investing in cryptocurrencies via the use of VPN on the Defi platforms. 

Before the official ban of China on crypto, Huobi was the main hub for the Chinese crypto traders because Huobi was the biggest crypto exchange backed by Chinese company. 

However, now Deribit leads the chart in terms of Chinese crypto traders’ traffic with a 12% share and OKX with 9.6%.

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