Today Binance has announced the launch of peer-to-peer trading for Bitcoin (BTC), Ether (ETH), and Tether (USDT) against the Chinese Yuan (CNY).
This launch will make it possible for Chinese cryptocurrency traders to trade Bitcoin, Ethereum, and Tether against the Chinese Yuan. The company also revealed that the P2P Trading platform would exclusively be accessible to Android users (Version 1.12.1) with 30-day old Binance accounts.
Binance has urged its users to update their Binance Android app to the latest version to gain access to the new service. The platform has also promised to roll out the service to iOS and web interfaces in the coming days.
Reviving the Chinese Crypto Market Amidst Hostile Regulations
Binance announcement comes at the backdrop of hostile regulations from the Chinese government that has negatively impacted cryptocurrency growth.
In September 2017, the Chinese government imposed a ban on crypto exchanges, ICOs, and any trading platform dealing with cryptocurrency. This ban consequently drove all crypto startups out of the country.
Nonetheless, this move towards P2P and over-the-counter (OTC) trading seem to have halted these hostile cryptocurrency regulations and have become a critical on-ramp for China’s crypto traders.
What You Should Know about the P2P Trading Systems
P2P trading systems is indeed a solution to the hostile cryptocurrency regulations imposed by governments. It allows sellers and buyers to transact directly with each other without a third party to process trades.
The P2P form of cryptocurrency trading requires buyers and sellers to sign up on a website (P2P exchange, P2P marketplace, or a P2P platform) and buy or sell their preferred cryptocurrencies at a specific price, or within a certain price range in a particular location.
OTC also operates in the same way as P2P trading and allows cryptocurrency traders to hide behind the hostile regulations. For instance, Huobi and OKEx, two of the major Chinese exchanges that closed down following the regulations, have continually serve Chinese customers from abroad locations using OTC platforms.
The launch of Binance’s P2P trading to the Chinese is indeed critical to the growth of cryptocurrency. It is projected to revive the Chinese crypto sector, which until its ban had the highest trading volume in the globe.
Binance’s co-founder and chief marketing officer, He Yi, stated that the launch of the new P2P trading platform in China is part of an extensive plan to expand Chinese crypto sector by dedicating more time and resources. The exchange is also planning to open an over-the-counter (OTC) market, primarily supporting Chinese yuan.
The company’s CEO Changpeng Zhao, has also signaled that P2P platforms for other countries subject to crypto trading regulations will soon follow.