The halt on cryptocurrency withdrawals from Bitcoin exchanges in China may be coming to an end. Bitcoin talked to Bitkan to understand the situation with Bitcoin exchanges and how it has affected P2P trading in the country.
Withdrawals to be Resumed
The halt on cryptocurrency withdrawals imposed by Chinese exchanges is coming to an end, with withdrawals expected to be resumed in June 2017. The moratorium was caused by the task forces assembled by the country’s central bank to inspect said exchanges. While all operations are expected to continue next month, the top three exchanges, BTCC, Huobi, and OKCoin will receive punitive action under charges of not complying with AML guidelines.
A situation that has lasted for more than three months and that has changed the Bitcoin landscape entirely in China, the moratorium on withdrawals may be coming to an end. However, since the removal of several features like the zero-fee policy, margin trading, and cryptocurrency withdrawals, Bitcoin traders have begun to flock towards P2P solutions like Bitkan.
Bitcoinist talked to Bitkan to better understand the current situation with Bitcoin exchanges and how it has affected peer-to-peer trading in the country. Bitkan is a Chinese p2p exchange that has seen an unprecedented growth following the PBoC interventions, seeing its user base grow rapidly at 150 thousand per month.
Bitcoinist: Do you think the upsurge in BitKan’s popularity is due to the withdrawal moratorium in centralized exchanges or due to the steep KYC requirements that these will have to employ?
BK: We have to admit that the both things are sort of reasons for the upsurge these days.
Bitcoinist: What do you think new customers are more drawn to in Bitkan, causing them to choose it over other p2p alternatives?
BK: Bitkan has multiple functions, like market data, industry News, wallet. This one application can meet different needs of each user. The whole trading process on Bitkan is very easy. Just some simple steps then you can sell/buy Bitcoin at a good price. Every trader on Bitkan needs to pass strict KYC. During the trading process, Bitkan does the escrow and frozen Bitcoin for safer trading.
Bitcoinist: Does BitKan see a pattern in the types of services these new customers are interested in (buying and holding/trading/selling BTC payments, etc)
BK: We think these three needs are increasing now. On Bitkan, the most popular part is still trading. Because during these days, there are price gaps between sell and buy side on Bitkan. Also, Chinese people are very passionate in earning a profit in market volatility.
Bitcoinist: Compared to USD exchanges, there is currently a huge discount (~$300) when buying/selling Bitcoin with CNY on centralized exchanges. Is Bitcoin also trading with this discount on BitKan?
BK: No, on Bitkan the price is very fair, equal to international standard. For example, 5.10, the price on the Chinese exchange is 9962RMB, 1450USD, but on Bitkan’s P2P trading platform, the selling price is around 12600RMB, 1855USD.
Bitcoinist: Do you expect the growth of BitKan to continue after the withdrawals are reactivated on centralized exchanges?
BK: Yes. Since the forbidden withdraw thing happened, more and more people know Bitkan. As a P2P platform, we are more easy-using, because we have a mobile application with trading function. Also, Bitkan is not a new company which just pump into this market for short time profit. Bitkan has already been in Bitcoin industry for almost 4 years. We gathered huge user group and earned good reputation during past four years. So, we have the confidence that the market won’t fall down because of the opening withdrawing.
Bitcoinist: Are there any new services or developments coming to BitKan?
BK: Now, Bitkan is optimizing the trading process. Firstly, we are optimizing the recommended mechanism. We wish to offer every trader, especially these traders who have great service, a fair way to earn a profit. Secondly, we are optimizing the KYC process. we wish to provide an easy-to-use KYC way to legal users. Also, optimized KYC process can avoid risk for Bitkan, making a safe platform for trading.
[Full disclosure: Bitcoinist is not owned by and is not associated with BitKan.]
Will the Bitcoin P2P trading continue to grow in China? Let us know what you think in the comments below!
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