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Cryptocurrency exchange platform Binance launched its P2P trading facility for trading cryptocurrencies against the Chinese Yuan. This way, the company is opening a kind of a “safe space” for Chinese traders who want to trade cryptos.
Two days ago, the biggest cryptocurrency exchange in the world in terms of trading volume, Binance announced it’s launching its new P2P trading facility for trading cryptocurrencies against the Chinese Yuan. Currently, this facility is only available for Android users. However, it has promised to roll-out this facility on iOS and web interface as well.
That seems like a huge deal because in June this year, the People’s Bank of China (PBOC), the central regulatory authority that regulates financial institutions and drafts the monetary policy of the country, said that “it would block access to all domestic and foreign cryptocurrency exchanges and ICO websites.” Still, it seems they could be changing their views.
Actually it’s pretty hard, if even impossible to decide on the size of the overall OTC market but analysts claim it’s at least “as vital to the crypto ecosystem as the trading that happens on exchanges – and perhaps even much bigger.”
With this step, Binance is opening a kind of a “safe space” for Chinese traders who want to trade cryptocurrencies. It is also a good thing for Bitcoin and all other cryptocurrencies since it’s opening a crypto-trading territory for around 1.4 billion people in China.
Just for info, on p2p Bitcoin marketplaces such as Localbitcoins and Paxful, Chinese traders have traded with more than 30,000 BTC so far this year.
Statistic site Anacoinda says that even though crypto in China is “forbidden”, China seems to be among the top five nations in the world in terms of p2p crypto trading. This actually means Chinese Bitcoin traders traded with more than $258 million this year.
With Binance, trading cryptocurrencies should become even easier and it’s important to mention that many traders that are doing their business on the Chinese market can trade on other markets as well. However, for more than 1.4 billion Chinese residents, the only short-term solution to do crypto-business is with the help of p2p platforms and OTC trading desks, such as Binance.
Managing director at Joyrich Securities Investment Ltd, Kenneth Cheung, said this Binance’s step is “huge” for the industry, noting that the Chinese market holds lots of potential. He wrote:
Wow that's huge from @cz_binance. Can't believe Binance can start P2P trading so quickly from China! 1.4bn people can now trade cryptos easily, and it's expanding to other regions soon and driving fast adoption. Another impressive and amazing milestone from the @binance team. https://t.co/W3gdl8nwEH
— Kenneth Cheung (@Kenneth67841996) October 9, 2019
Binance CEO Changpeng Zhao (“CZ”) tweeted that transaction volumes on day one had already “exceeded the company’s expectations, and once again reiterated that China is but the first of many countries on his yet undisclosed list of new markets to explore.”
Last night, @Binance Launches P2P Trading, starting with China. Most of CT probably can't use it yet, but 1.4 billion people can. We will expand the service to other regions soon.
— CZ Binance (@cz_binance) October 9, 2019
In other news, CZ also announced Binance began to accept fiat currencies through online payment service Alipay and mobile messaging and payment app WeChat. Zhao was quick to clarify that Binance is not working directly with WeChat or Alipay, and users are still able to use them for peer-to-peer transactions.