How the Chinese use VPN and DeFi to circumvent bans
Since the introduction of strict cryptocurrency bans in China, many investors and traders have been looking for ways to continue their operations with cryptocurrencies. In response to restrictive measures, Chinese users are actively using VPN (Virtual Private Network) and DeFi (decentralized finance) as tools to bypass locks and continue working in international cryptocurrency markets. In this article, we look at how the Chinese use VPN and DeFi to circumvent bans and what technologies allow them to remain active in the cryptocurrency industry.
1. China cryptocurrency bans: Trouble for investors
1.1 Strict regulation and prohibitions
Since 2017, Chinese authorities have begun to actively introduce bans on cryptocurrency exchanges, ICOs (primary coin offerings) and cryptocurrency mining. These measures were aimed at controlling financial risks, as well as preventing speculation and fraud in the cryptocurrency sphere. In 2021, China also banned cryptocurrency mining altogether, forcing numerous mining companies to leave the country.
- In response to such bans, many Chinese investors, traders and cryptocurrency users began looking for ways to continue their operations despite the blockages and restrictions.
2. Using VPN to Bypass Locks
2.1 What is a VPN and how it helps to bypass bans
VPN (Virtual Private Network) is a technology that allows a user to create a secure and anonymous Internet connection, hiding their real location. With VPN, the Chinese can bypass geographic locks by connecting to servers in countries with more liberal cryptocurrency regulation.
- VPN allows you to connect to foreign cryptocurrency exchanges and platforms, as well as participate in cryptocurrency transactions through anonymous channels. It helps Chinese investors and traders continue to trade despite blockages and bans imposed by Chinese authorities.
2.2 Popular VPN services among Chinese users
Many Chinese users actively use international VPN services such as ExpressVPN, NordVPN, Surfshark and others to have access to cryptocurrency exchanges and platforms. These services offer high speed and stable connectivity, which is critical for efficient trading and investing in cryptocurrencies.
- The use of VPN services helps Chinese users bypass government filters and access to blocked sites, as well as protect their transactions and data from external control.
3. DeFi (decentralized finance) as a way to bypass
3.1 What is DeFi and how it helps circumvent bans
DeFi (decentralized finance) is a system of financial services running on blockchain platforms that allows users to exchange assets, earn money from lending, staking and trading cryptocurrencies without the need for traditional financial intermediaries (such as banks). Unlike centralized cryptocurrency exchanges, which can be blocked by Chinese authorities, DeFi platforms are decentralized and independent of one central body.
- DeFi platforms allow Chinese investors to continue their cryptocurrency operations, including trading, lending and investing, despite government bans. These platforms run on smart contracts and allow users to access financial services without using traditional banks or cryptocurrency exchanges.
3.2 Examples of popular DeFi platforms among Chinese investors
Chinese users actively use DeFi platforms such as Uniswap, Aave, Compound, SushiSwap and others to exchange cryptocurrencies, allow them to receive loans and make money on staking. These platforms are decentralized and cannot be blocked by the Chinese authorities.
- DeFi provides Chinese users with access to a wide range of services that allow them to bypass centralized locks and continue to use the financial capabilities of cryptocurrency assets.
4. VPN and DeFi Risks and Calls
4.1 Risks with Safety and Anonymity
The use of VPN and DeFi is associated with a number of risks. For example, Chinese users using VPNs can expose themselves to cyber attacks or fraud, as their data can be intercepted. There is also a risk of using unreliable services that can collect personal information.
- To protect against these risks, it is important to choose proven VPN services and use DeFi platforms that provide a high level of security and anonymity.
4.2 Compliance Issues
China continues to fight cryptocurrency operations and may continue to strengthen control over the activities of its citizens on the Internet. Users who actively use VPN and DeFi platforms may face the threat of legal consequences or fines if they are caught violating local laws.
- While the use of VPN and DeFi helps circumvent many restrictions, it is important for Chinese users to understand all possible legal implications and risks associated with using these technologies.
Conclusion
VPN and DeFi have become major tools for Chinese seeking to continue investing in and trading cryptocurrencies amid strict bans and regulations. These technologies allow Chinese users to bypass blockages, participate in decentralized finance and cryptocurrency exchanges, which gives them the opportunity to maintain activity in global cryptocurrency markets. However, it is important to remember that the use of VPN and DeFi is associated with risks such as data security and legal consequences, which requires care and discretion when using these tools.
Since the introduction of strict cryptocurrency bans in China, many investors and traders have been looking for ways to continue their operations with cryptocurrencies. In response to restrictive measures, Chinese users are actively using VPN (Virtual Private Network) and DeFi (decentralized finance) as tools to bypass locks and continue working in international cryptocurrency markets. In this article, we look at how the Chinese use VPN and DeFi to circumvent bans and what technologies allow them to remain active in the cryptocurrency industry.
1. China cryptocurrency bans: Trouble for investors
1.1 Strict regulation and prohibitions
Since 2017, Chinese authorities have begun to actively introduce bans on cryptocurrency exchanges, ICOs (primary coin offerings) and cryptocurrency mining. These measures were aimed at controlling financial risks, as well as preventing speculation and fraud in the cryptocurrency sphere. In 2021, China also banned cryptocurrency mining altogether, forcing numerous mining companies to leave the country.
- In response to such bans, many Chinese investors, traders and cryptocurrency users began looking for ways to continue their operations despite the blockages and restrictions.
2. Using VPN to Bypass Locks
2.1 What is a VPN and how it helps to bypass bans
VPN (Virtual Private Network) is a technology that allows a user to create a secure and anonymous Internet connection, hiding their real location. With VPN, the Chinese can bypass geographic locks by connecting to servers in countries with more liberal cryptocurrency regulation.
- VPN allows you to connect to foreign cryptocurrency exchanges and platforms, as well as participate in cryptocurrency transactions through anonymous channels. It helps Chinese investors and traders continue to trade despite blockages and bans imposed by Chinese authorities.
2.2 Popular VPN services among Chinese users
Many Chinese users actively use international VPN services such as ExpressVPN, NordVPN, Surfshark and others to have access to cryptocurrency exchanges and platforms. These services offer high speed and stable connectivity, which is critical for efficient trading and investing in cryptocurrencies.
- The use of VPN services helps Chinese users bypass government filters and access to blocked sites, as well as protect their transactions and data from external control.
3. DeFi (decentralized finance) as a way to bypass
3.1 What is DeFi and how it helps circumvent bans
DeFi (decentralized finance) is a system of financial services running on blockchain platforms that allows users to exchange assets, earn money from lending, staking and trading cryptocurrencies without the need for traditional financial intermediaries (such as banks). Unlike centralized cryptocurrency exchanges, which can be blocked by Chinese authorities, DeFi platforms are decentralized and independent of one central body.
- DeFi platforms allow Chinese investors to continue their cryptocurrency operations, including trading, lending and investing, despite government bans. These platforms run on smart contracts and allow users to access financial services without using traditional banks or cryptocurrency exchanges.
3.2 Examples of popular DeFi platforms among Chinese investors
Chinese users actively use DeFi platforms such as Uniswap, Aave, Compound, SushiSwap and others to exchange cryptocurrencies, allow them to receive loans and make money on staking. These platforms are decentralized and cannot be blocked by the Chinese authorities.
- DeFi provides Chinese users with access to a wide range of services that allow them to bypass centralized locks and continue to use the financial capabilities of cryptocurrency assets.
4. VPN and DeFi Risks and Calls
4.1 Risks with Safety and Anonymity
The use of VPN and DeFi is associated with a number of risks. For example, Chinese users using VPNs can expose themselves to cyber attacks or fraud, as their data can be intercepted. There is also a risk of using unreliable services that can collect personal information.
- To protect against these risks, it is important to choose proven VPN services and use DeFi platforms that provide a high level of security and anonymity.
4.2 Compliance Issues
China continues to fight cryptocurrency operations and may continue to strengthen control over the activities of its citizens on the Internet. Users who actively use VPN and DeFi platforms may face the threat of legal consequences or fines if they are caught violating local laws.
- While the use of VPN and DeFi helps circumvent many restrictions, it is important for Chinese users to understand all possible legal implications and risks associated with using these technologies.
Conclusion
VPN and DeFi have become major tools for Chinese seeking to continue investing in and trading cryptocurrencies amid strict bans and regulations. These technologies allow Chinese users to bypass blockages, participate in decentralized finance and cryptocurrency exchanges, which gives them the opportunity to maintain activity in global cryptocurrency markets. However, it is important to remember that the use of VPN and DeFi is associated with risks such as data security and legal consequences, which requires care and discretion when using these tools.