Crypto Investment By Chinese Middle-Class -Chinese middle class is constantly investing in cryptocurrency day by day. So there seems to be no solution for this problem except warnings and unparalleled actions from the Chinese government to stop their citizen’s ingress to cryptocurrencies and to prevent their investment activity. Regardless of this, Chinese middle is not showing any lack of interest in this matter.
Anti Crypto Actions
The Chinese government’s anti- crypto actions are becoming more powerful to prevent its middle-class citizen’s interest in cryptocurrencies investments. Similarly, Compare to other countries anti-crypto laws, Chinese government anti-crypto laws are much effective. Despite of this, there is no downfall of interest among its middle-class people.
A report from Tech Node titled The New Middle Class scrutinizes Chinese Middle-class investment and spending practice has claimed for the first time that Bitcoin and other cryptocurrencies have become their new investment option.
Crypto Investment By Chinese Middle-Class -The report also claims that 10% of middle class in China has invested in digital currency, although it is less compared to another form of investment such as private equity, debentures, cash savings, and others. It is clear evidence of growing interest in digital currency investment among China’s middle class despite the government’s strict rules and bans.
Recently there was a paper published by writer Wu Xiaobo, records that China’s middle class is impressively risked adverse and are anxious with fixed financial growth.
Chinese government’s solution
There is no doubt that the Chinese government has a tough time in resolving this situation.
The People’s Bank of China known as PBoC recently warned citizens to stay away from cryptocurrencies. And primarily initial Coin Offerings knew as ICOs.
The PBoC stated investors that ICOs are not only risky but also “suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes, and other illegal and criminal activities.”
Crypto Investment By Chinese Middle Class-Citizens in China is finding new methods to access in digital currencies. The increase in Cryptocurrencies investment in China has resulted in a 5% decrease in global Yuan trading volume to 85%.
Chinese citizens getting access for offshore transactions with the help of VPNs called Virtual Private Networks. It helps them to transact internationally without any risk of being held liable by the government’s internet agencies.
The other way the investors have found is peer to peer transactions. Where the fiat currency is exchanged for digital currency with the help of cold storage solutions. This can create difficulties for investors with more effectiveness in-laws.
Some cryptocurrency exchanges are often changing domain names to escape from the government’s efforts of blocking it. Those exchanges are also serving the underground Chinese crypto market.
Social media platforms such as Wechat, Tencent are being used by Chinese companies. They are working with PBoC to restrict crypto news publication and illegal trading activities.