Over-the-counter (OTC) buying and selling desks in China are on their approach out because the nation cracks down on cryptocurrency actions, a veteran of the native crypto scene predicted.
“I think OTC platforms that are operated from the big exchanges will close down,” mentioned Bobby Lee, founder and CEO of the Ballet pockets service and former head of BTCC, as soon as one of many greatest bitcoin exchanges in China.
“They will stop offering their services to Chinese mainland users,” Lee mentioned in an look on CoinDesk TV’s “First Mover” Monday. “There are still OTC users making transactions but I think that will just taper off.”
OTC desks, which commerce exterior exchanges, are a preferred approach for buyers in China to purchase and promote crypto, and should quickly be the one approach. Huobi, one of many world’s largest crypto exchanges, suspended service to Chinese customers over the weekend after Beijing’s newest crackdown on crypto mining and buying and selling final week.
Lee additional predicted crypto and digital belongings will grow to be “foreign assets,” related to actual property.
“I think bitcoin will become that kind of asset where you can’t sell that foreign property within mainland China but if one day, you were to travel to that country … you can then take care of buying or selling these foreign assets, but while inside mainland China, you won’t be able to do that,” Lee mentioned.
Earlier this week, the People’s Bank of China banned any crypto-related transactions, together with providers from offshore crypto exchanges, one other step within the nation’s transfer to additional management its monetary system.
Nevertheless, Lee informed CoinDesk TV viewers he nonetheless thinks the worth of bitcoin will surpass $100,000 by the top of the 12 months.
Watch the complete interview right here: