The soaring price of Bitcoin has raised the profile of internet users in mainland China, where some crypto-related activities continue despite a blanket ban by the government.
Bitcoin, the world's largest and most valuable cryptocurrency, has risen more than 16% in the past five days, surpassing US$59,000 on Wednesday and rapidly trending on all major social media platforms in China. It became a hot topic.
At one point Wednesday, Bitcoin ranked 11th among the most searched terms on microblogging service Weibo.
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Bitcoin's popularity on Chinese super app WeChat, which tracks keyword traction across in-app searches, videos, live streams, and blog posts, also increased by more than 358 percent from the previous day, according to Tencent Holdings' official WeChat Index.
In 2013, the Chinese government banned banks from handling Bitcoin, and in 2017 it forced virtual currency exchanges to move overseas. In 2021, the country's regulator reiterated that it will prohibit all financial institutions from engaging in crypto-related activities. Photo: Shutterstock alt=The Chinese government banned banks from handling Bitcoin in 2013 and forced cryptocurrency exchanges to move overseas in 2017. In 2021, the country's regulator reiterated that it will prohibit all financial institutions from engaging in crypto-related activities. Photo: Shutterstock>
This was followed by a 676% increase in Bitcoin's popularity on WeChat on February 13th, the same day Bitcoin reached the USD 50,000 level for the first time in over two years.
Bitcoin has risen 40% since early February after remaining below US$30,000 for much of last year following the 2022 crypto market crash.
Buoyed by the launch of a Spot Bitcoin ETF in the US in January, Bitcoin is currently trading at its highest price since reaching a historic high of US$69,000 in November 2021.
The intense interest in rising Bitcoin prices on Chinese social media reflects how the mainland's community of crypto enthusiasts is thriving despite the Chinese government's strict stance on all crypto-related activities. It reflects whether you are continuing.
A Reuters report in January said investing in cryptocurrencies had recently become more attractive for some people on the mainland as the stock market continued to plummet amid economic hardship.
Cryptocurrency trading through many major exchanges also remains active in mainland China, with traders employing various workarounds to circumvent loosely enforced regulations.
Tests conducted by the South China Morning Post show that despite warnings on the site, Binance does not allow mainland users to create accounts and trade on the exchange through several workarounds. ing.
Still, the Chinese government has ramped up its scrutiny of all activities related to cryptocurrencies over the years, citing risks to financial stability.
The Chinese government is currently grappling with money laundering risks associated with cryptocurrencies, while supporting Hong Kong's ambitions to become a major hub for crypto assets.
In the ranking of virtual currency adoption in 20 major countries by research firm Chainalysis, mainland China was ranked 10th in 2022, but last year it was ranked 11th.
The trading volume ranking of mainland China's centralized cryptocurrency exchanges was second in 2022, but fell to 10th last year, while the country ranked 13th in peer-to-peer trading volume last year, according to Chainalysis. It has risen from 144th place in 2022. .
Before cryptocurrency exchange FTX went bankrupt in 2022, mainland Chinese traders accounted for 8% of the platform's user base, according to the company's bankruptcy filing.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative news organization on China and Asia for more than a century. For more stories from SCMP, explore the SCMP app or visit SCMP on Facebook. twitter page. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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