Tether and VPN

China continues to invest in cryptocurrencies thanks to Tether and VPN



Chinese merchants are using virtual private networks (VPNs) as an important tool to bypass the government's crackdown on the cryptocurrency trade, according to a report published on Sept. 8 by the South China Morning Post (SCMP). .

According to SCMP, referring to the Shanghai Securities Times reports affiliated with Beijing, operators have begun using the Tether stablecoin (USDT) as a means to enter and exit the cryptocurrency markets.

In combination with a VPN, two operators can use a trading platform theoretically registered outside of China as an intermediary to exchange cryptocurrencies for trust currency and vice versa.

"People who have completed a 'know your client' procedure with an exchange can negotiate 'fiat currencies' for tethers," the publication reports.

"The exchange plays the role of supervisor of such operations, and is ready to adjudicate in cases of failed transactions or transactions that are not respected."

A Beijing district stepped up the general ban on cryptocurrency exchanges last month, seeking at the local level to ban more than 120 platform websites that try to serve potential domestic consumers.

In Hong Kong and Taiwan, TideBit president Terence Tsang told SCMP that "it is aimed at a batch of smaller exchanges that have been cashed as foreign entities, but in fact they are operating in China claiming they have outsourced their operations to a Chinese company. "

At the same time, the report says, there is currently no successful scheme in place to block VPNs, which allows smarter operators to maintain access to online banned resources.

Chinese merchants have sought various means of crypto trade since the authorities began cracking down on the practice in September 2017.

They have taken the form of using Hong Kong as a place away from home for the platforms themselves, while merchants have resorted to peer-to-peer options, something that the Chinese government has now also tried to close.

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