Chinese and USDT: How to get around bans
After imposing strict measures against cryptocurrency transactions, including blocking cryptocurrency exchangers and banning mining, Chinese authorities have significantly restricted local users' access to popular cryptocurrencies and stablecoins such as Tether (USDT). Despite the heavy bans, however, Chinese users continue to look for ways to use USDT for transactions and asset retention. In this article, we look at how the Chinese bypass USDT bans, what methods they use to access stablecoins, and how it affects the cryptocurrency market in China.
1. Why are the Chinese using Tether (USDT)?
Tether (USDT) is one of the most popular stablecoins, tied to the value of the US dollar. It allows users to keep their assets digitally, avoiding the volatility of traditional cryptocurrencies such as bitcoin or ethereum. Tether is used not only for trading cryptocurrencies, but also for transfers, savings and even to hedge risks in a volatile economy.
In addition, USDT is actively used in international transfers and in decentralized financial systems (DeFi). Despite the fact that Chinese law limits the use of stablecoins, Tether continues to remain in demand in the crypto market, including among Chinese users looking for a stable asset amid severe economic and financial restrictions.
2. How do the Chinese get around USDT bans?
2.1 Use of international cryptocurrency platforms
Despite the ban on cryptocurrency exchangers in China, Chinese users are finding ways to continue using USDT through international cryptocurrency platforms. Many of them provide VPN services and other tools to bypass locks, allowing users to access stablecoin sharing platforms.
P2P (peer-to-peer) platforms such as LocalBitcoins and Binance P2P are also popular among Chinese users, as they allow you to directly exchange USDTs with other users, bypassing centralized exchangers, which helps bypass restrictions.
2.2 Using Decentralized Exchanges (DEX)
In response to the restrictions, Chinese users began to actively use decentralized exchanges (DEXs) such as Uniswap and Sushiswap, which do not require centralized control and registration. These platforms allow the exchange of USDT and other cryptocurrencies directly, without the participation of intermediaries, which makes them more resistant to regulation and blocking by the authorities.
Unlike centralized crypto exchanges, where transactions can be easily tracked and blocked, DEX offers anonymity and a reduced likelihood of blocking by Chinese authorities, making them an attractive choice for Chinese traders and investors.
2.3 Using VPN and Anonymous Transactions
To bypass locks, Chinese users actively use VPN services that allow them to hide their location and gain access to foreign cryptocurrency exchanges and USDT exchange platforms. VPN services help hide traffic and provide anonymity when making transactions, which allows you to bypass both IP address blocking and site filtering.
In addition, the Chinese actively use anonymous cryptocurrency wallets such as Coinomi and Exodus, which provide an additional layer of protection and avoid tracking transactions.
3. Risks associated with circumvention of prohibitions
While bypassing USDT bans can be convenient for Chinese users, the process comes with many risks, including:
3.1 Legal Risks and Consequences
The use of stablecoins such as Tether, bypassing Chinese bans, could lead to legal consequences, including fines and legal prosecutions. Chinese authorities are actively monitoring cryptocurrency transactions and regularly block cryptocurrency platforms that violate local laws.
In addition, participants in the crypto market who use USDT exchange platforms may face problems guaranteeing rights and protecting transactions in the event of fraud or disputes.
3.2 Loss of funds
The use of international platforms and decentralized exchanges can expose Chinese users to risks associated with fraud and unsafe platforms. On some P2P platforms and DEXs, there may be cases of deception where sellers or buyers may fail to meet their obligations, leaving the other party out of pocket.
In addition, due to the limitations and complexity of working with cryptocurrencies, Chinese users may face high transaction costs, which reduces the overall efficiency of using cryptocurrencies.
4. The future of USDT use in China
Given that China continues to actively develop and implement the digital yuan (e-CNY), the use of stablecoins such as USDT may be even more limited in the future. The digital yuan offers Chinese users a government alternative for digital payments that is controlled and regulated by China's Central Bank, which could reduce the need for private stablecoins.
Yet for now, the USDT continues to be popular with Chinese users, and is likely to remain so anytime soon despite intensifying measures to restrict cryptocurrency activity in the country.
Conclusion
Despite the heavy bans, Chinese users continue to find ways to use Tether (USDT) for transactions and asset retention. The use of VPNs, decentralized exchanges (DEXs) and anonymous wallets helps to bypass locks, but this process involves many risks, including legal consequences and loss of funds. In the future, the use of the digital yuan (e-CNY) may reduce dependence on stablecoins, but for now USDT remains an important tool in the Chinese crypto market.
After imposing strict measures against cryptocurrency transactions, including blocking cryptocurrency exchangers and banning mining, Chinese authorities have significantly restricted local users' access to popular cryptocurrencies and stablecoins such as Tether (USDT). Despite the heavy bans, however, Chinese users continue to look for ways to use USDT for transactions and asset retention. In this article, we look at how the Chinese bypass USDT bans, what methods they use to access stablecoins, and how it affects the cryptocurrency market in China.
1. Why are the Chinese using Tether (USDT)?
Tether (USDT) is one of the most popular stablecoins, tied to the value of the US dollar. It allows users to keep their assets digitally, avoiding the volatility of traditional cryptocurrencies such as bitcoin or ethereum. Tether is used not only for trading cryptocurrencies, but also for transfers, savings and even to hedge risks in a volatile economy.
In addition, USDT is actively used in international transfers and in decentralized financial systems (DeFi). Despite the fact that Chinese law limits the use of stablecoins, Tether continues to remain in demand in the crypto market, including among Chinese users looking for a stable asset amid severe economic and financial restrictions.
2. How do the Chinese get around USDT bans?
2.1 Use of international cryptocurrency platforms
Despite the ban on cryptocurrency exchangers in China, Chinese users are finding ways to continue using USDT through international cryptocurrency platforms. Many of them provide VPN services and other tools to bypass locks, allowing users to access stablecoin sharing platforms.
P2P (peer-to-peer) platforms such as LocalBitcoins and Binance P2P are also popular among Chinese users, as they allow you to directly exchange USDTs with other users, bypassing centralized exchangers, which helps bypass restrictions.
2.2 Using Decentralized Exchanges (DEX)
In response to the restrictions, Chinese users began to actively use decentralized exchanges (DEXs) such as Uniswap and Sushiswap, which do not require centralized control and registration. These platforms allow the exchange of USDT and other cryptocurrencies directly, without the participation of intermediaries, which makes them more resistant to regulation and blocking by the authorities.
Unlike centralized crypto exchanges, where transactions can be easily tracked and blocked, DEX offers anonymity and a reduced likelihood of blocking by Chinese authorities, making them an attractive choice for Chinese traders and investors.
2.3 Using VPN and Anonymous Transactions
To bypass locks, Chinese users actively use VPN services that allow them to hide their location and gain access to foreign cryptocurrency exchanges and USDT exchange platforms. VPN services help hide traffic and provide anonymity when making transactions, which allows you to bypass both IP address blocking and site filtering.
In addition, the Chinese actively use anonymous cryptocurrency wallets such as Coinomi and Exodus, which provide an additional layer of protection and avoid tracking transactions.
3. Risks associated with circumvention of prohibitions
While bypassing USDT bans can be convenient for Chinese users, the process comes with many risks, including:
3.1 Legal Risks and Consequences
The use of stablecoins such as Tether, bypassing Chinese bans, could lead to legal consequences, including fines and legal prosecutions. Chinese authorities are actively monitoring cryptocurrency transactions and regularly block cryptocurrency platforms that violate local laws.
In addition, participants in the crypto market who use USDT exchange platforms may face problems guaranteeing rights and protecting transactions in the event of fraud or disputes.
3.2 Loss of funds
The use of international platforms and decentralized exchanges can expose Chinese users to risks associated with fraud and unsafe platforms. On some P2P platforms and DEXs, there may be cases of deception where sellers or buyers may fail to meet their obligations, leaving the other party out of pocket.
In addition, due to the limitations and complexity of working with cryptocurrencies, Chinese users may face high transaction costs, which reduces the overall efficiency of using cryptocurrencies.
4. The future of USDT use in China
Given that China continues to actively develop and implement the digital yuan (e-CNY), the use of stablecoins such as USDT may be even more limited in the future. The digital yuan offers Chinese users a government alternative for digital payments that is controlled and regulated by China's Central Bank, which could reduce the need for private stablecoins.
Yet for now, the USDT continues to be popular with Chinese users, and is likely to remain so anytime soon despite intensifying measures to restrict cryptocurrency activity in the country.
Conclusion
Despite the heavy bans, Chinese users continue to find ways to use Tether (USDT) for transactions and asset retention. The use of VPNs, decentralized exchanges (DEXs) and anonymous wallets helps to bypass locks, but this process involves many risks, including legal consequences and loss of funds. In the future, the use of the digital yuan (e-CNY) may reduce dependence on stablecoins, but for now USDT remains an important tool in the Chinese crypto market.