China crypto trading thrives in 'OTC' market despite restrictions

Report shows investors hungry for alternative assets as stock market slumps

Chinese authorities have left little room for the cryptocurrency industry, but data shows growing demand for such assets in the country. © Reuters

ECHO WONG, Nikkei staff writer

September 18, 2024 09:07 JST

HONG KONG -- Cryptocurrency trading activity is on an upswing in China despite regulators' tight grip on the market, a new report shows, as investors look for alternatives to sluggish stocks in a slowing economy.

Trading volume in the China-based "over the counter" market -- where crypto buyers and sellers are connected directly through often concealed networks -- more than tripled to $23.7 billion in the second quarter of 2024 from the same period of 2021, New York-headquartered blockchain data platform Chainalysis said in a study released Wednesday.