“There’s a lot of Chinese retail people reaching out to us, but we can’t handle it…”
In the “golden era” of Chinese crypto trading, mainland operators built up considerable expertise before they were forced out of business. Some of those operators of Chinese exchanges are setting up again in “friendlier” jurisdictions around Asia, as Bloomberg reports, and their aspirations are global.
From OKCoin to Binance.com, Chinese exchanges and wallet services are seeking a second life in friendlier Asian jurisdictions as the mainland clamps down on trading and coin offerings. They’re applying for licenses in Japan – solo or via partners – setting up over-the-counter shops in Hong Kong, or laying the groundwork to operate from Singapore and South Korea. Forced out of their own home turf, the players that once dominated the world’s largest digital currency market are betting that investors harboring an insatiable demand for alternative investments will follow. Going abroad may help operators hedge risks, attract new customers and stake out other corners of the $170 billion industry.
“China used to account for a significant share of the cryptocurrency market, so we think the demand is there,” said Hong Kong-based Lennix Lai, the financial market director for OKEx, which is backed by OKCoin.
“As formerly one of the biggest operators in China, we think we have a good chance of competing globally.”