Binance company, which owns the world’s largest cryptomeria, has launched a new p2p platform for OTC trading in the Chinese market. With its help, the inhabitants of the country will be able to buy Bitcoin, Ether and Tether for yuan, and using a user-friendly interface. However, here it should be noted that potentially benefit from this event will spread throughout the industry of cryptocurrency.
The main value of this event makes that in China today, the trade through centralized exchanges are prohibited by law. However, it turned out that to keep the coins and do cryptotrading in p2p format (that is, from between the two parties without an intermediary in the exchange) are allowed.
Although measurement of the volumes of peer to peer trade is not possible, analysts say that they can be compared with the trading volumes on cryptomeria. Accordingly, for the cryptocurrency ecosystem is equally important. The opportunity for Chinese traders could potentially provoke a strong push for Bitcoin and other cryptocurrencies, because market access will be opened for a huge number of customers.
Now China has a population of 1.38 billion people, and if Binance will cover at least some of these people, the trading volume of the cryptocurrency will increase significantly. For example, on such p2p platforms as Localbitcoins and Paxful this year alone has already sold 30 thousand BTC, according to Decrypt. In dollar terms, adjusted for inflation, it turns out that the volume of Chinese Bitcoin traders equivalent to 258 million. According to the cryptanalytic firms Anacoinda, that’s enough to put China in the top five largest markets for peer-to-peer trade.
Now, however, a relatively simple and direct access to the cryptocurrency could further accelerate these figures. In the long term, we should expect a healthier market. That is, the additional liquidity will allow the stock market to become less susceptible to manipulation.
It must be remembered that traders have access to the Chinese market, unable to act and at other, more traditional markets. However, for most of the 1.4 billion Chinese people the only quick decision to buy cryptocurrencies are p2p platforms and OTC transactions, which now offers Binance.
In the middle of the week also came news that the cryptocurrency is now possible to buy popular in China services Alipay and WeChat. However, a day later representatives of the Alipay denied the rumors and said they would carefully monitor all transactions associated with cryptocurrencies. In turn, WeChat seems more friendly attitude toward the crypt. We wrote about this situation in our telegram channel.
Many traders have managed to speak to the account in social networks. Managing Director of Joyrich Securities Investment Ltd Kenneth Chung called the event “momentous” for the industry and added that the Chinese market has great potential.
Finally, the Chinese residents again had the opportunity to trade cryptocurrencies. And soon this wave will expand to other regions, triggering mass adoption. Another impressive and amazing milestone from the team Binance.
As in his Twitter said the General Director of the Binance Chanpen Zhao, the volume of transactions on the first day exceeded the expectations of the company. However, he noted that China is only the first of many countries in the secret list of the new markets. Here is his tweet.
I can hardly keep up either. Product launches are not the final key, it’s how many people use your product that counts. The transaction volumes for P2P on the first day already exceeded our expectations. Underestimated demand yet again… Good problem to have.
— CZ Binance (@cz_binance) October 9, 2019
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