The major exchanges from China have found a genuine way to continue the operations despite the government of China’s cracking down of cryptocurrency exchanges.
Huobi and Okcoin have stopped the operations on 31st October following the mandate by Chinese Government
Huobi Pro, A P2P trading platform, was recently launched by Huobi. Similarly, a P2P trading platform is to be launched by Okex, an international counterpart of Okcoin. Many fiat currencies which include CNY also will be accepted by this platform. Both Huobi and Okcoin have reacted to the crackdown in China and have located most of their operations outside China and launched P2P trading platforms through global associate companies. The move is seen as a measure by which companies can remain servicing the Chinese cryptocurrency markets and at the same time escaping the actions taken by Chinese regulators.
Okex’s financial market director, Lennix Lai, has said that the cryptocurrency still has the central order-book exchange model in the mainstream. But, the changes in regulatory market has brought uncertainty to crypto market. The exchange model is already ceased by some countries. He says that the motive behind launching a P2P trading platform is to provide better service to its clients worldwide. Okex will correspondingly deliver markets for Ethereum, Ethereum Classic future contracts, and Bitcoin cash.
According to Okex, it has developed a different “market maker model” for its P2P exchange, and is sure that counterparty risks will be reduced during P2P transactions. According to Okex, “when an order is placed by a buyer or seller, the market maker will enter and become buyer or seller’s counterparty, considering their own net exposure and diversifying counterparty risk”. It further says, “all qualified market makers will undergo a tough selection process by Team Okex”.
The rumors about the intentions of Okex to launch a trading platform for P2P cryptocurrency was first informed by Cnledger and a post titled, “Okex” (and likely, Huobi-Pro) will soon launch P2P Bitcoin trading with various fiat currency support” was launched on October 29.
In July, Huobi Announced First Time About Launching New ‘Cryptocurrency to Cryptocurrency’ Trading Platform
The operations of Huobi Pro were launched on July 28 where ETH/BTC, LTC/BTC, BCC/BTC and ETC/BTC traded initially. Like Okex, Huobi Pro didn’t launch fiat trading pairs but, it recently introduced USDT (Tether) pairs, where ETH/USDT and BTC/USDT pairs were launched on October 26, LTC/USDT on October 27, and ETC/USDT and BCC/USDT on October 31.
Recently, Leon Li, founder of Huobi described the end of previous cryptocurrency exchange of Huobi as a milestone and a watershed in Chinese digital assets’ history. Moreover, Huobi has diversified itself in 6 businesses which includes Huobi Pro.
Huobi Exchange (huobi.com) stated that the trading services between digital assets and US dollar will be offered to worldwide qualified investors, after the complete termination of every digital asset against the trading of RMB and clean-up of RMB investors.
Huobi Professional mentioned that it is a digital asset exchange which offers trading services for 10 digital assets and P2P investment services, including the digital asset transactions’ legal tender. The headquarters of Huobi professional are in Singapore and a subsidiary is based in Hong Kong. The Huobi Pro team operates both.
Huobi Korea stated that in this exchange, the trading services are offered between digital assets and Korean Won. Its headquarters are in Seoul and Huobi Korea team operates it.
Huobi China mentioned, it will be soon transformed to a research and information service provider in blockchain field. Its headquarters are in Beijing and Huobi China team will continue operating it.
Huobi Wallet indivated that this service will offer users to securely manage digital asset services. Its headquarters are in Beijing and Huboi China team will continue operating this as well.