The relationship between Bitcoin and China has a coloured past, to say the least. The People’s Bank of China has ordered third-party payment processors to stay away from Bitcoin companies; whilst China still remains the world’s largest trading market for the virtual currency. It looks like more and more people in China see Bitcoin as a safe haven, especially now that the Chinese Yuan is devaluating in spectacular fashion.
For some unknown reason, China has been the biggest Bitcoin marketplace for many years now, despite the People’s Bank of China warning merchants not to deal with digital currency payments, for the time being. Many enthusiasts have always wondered why China remained the biggest Bitcoin trading market, despite there hardly being any use for spending Bitcoin. We now have an answer to that question, as China sees Bitcoin how most other people see it as well: an investment vehicle with tremendous potential for daytrading profits.
When it comes to Chinese Bitcoin exchanges, there are only a handful of names that spring to mind. BTC China, Huobi, OKCoin and BTER are major Bitcoin platforms in Asia, and they handle most of the daily Bitcoin trading volume. However, it seems like the hierarchy in China is shifting, as Huobi has apparently become the country’s largest Bitcoin exchange in recent times.