Chinese Cryptocurrency Investors Bypass Ban to Earn $1.1 Billion Last Year

Profit Scale Ranked 4th Worldwide
Global Investor Profits Total $37.6 Billion

Chinese cryptocurrency investors reportedly achieved profits worth $1.15 billion (approximately 1.5 trillion KRW) last year. Although the Chinese government has legally banned cryptocurrency investment and trading, it appears unable to prevent peer-to-peer illicit trading investments.

On the 17th, Hong Kong's South China Morning Post (SCMP) cited research from blockchain analytics firm Chainalysis, reporting that Chinese cryptocurrency investors made $1.15 billion in profits last year. This ranks as the world's fourth largest, following the United States, the United Kingdom, and Vietnam, moving up one spot from Chainalysis's previously announced 2021 investment profit ranking (5th place).

The total profits of global investors last year amounted to $37.6 billion, a significant decrease compared to the $159.7 billion during the bullish cryptocurrency market in 2021. However, it represents a rapid recovery compared to the estimated $127.1 billion loss last year.

SCMP explained, "The scale of profits by mainland investors demonstrates how local follower communities continue to thrive despite China's strict stance on all activities related to virtual assets." It added, "Trading through several major exchanges is still actively taking place by circumventing the current loose restrictions."

Bitcoin, which has risen more than 50% in value since early this year, reached a record high of $73,777 on the 14th, drawing global attention. However, Chinese state media have reiterated warnings about the risks of cryptocurrencies. The state-run Jingjilbao recently emphasized in an article that "the rebound in Bitcoin prices cannot hide the fundamental risks of digital assets."

In contrast, SCMP highlighted that Hong Kong has pledged support with the goal of becoming a "cryptocurrency hub." Hong Kong has taken measures allowing retail investors to trade cryptocurrencies on authorized platforms.

Following the United States, Hong Kong plans to launch a Bitcoin spot Exchange-Traded Fund (ETF) in the second quarter of this year, and the United Kingdom has also announced approval of related products. ETFs are exchange-traded products that track major price indices based on underlying assets such as stocks, bonds, and commodities, making trading easier and seen as an opportunity to expand investment demand.