Despite a blanket prohibition on crypto transactions and international exchanges enacted last year, data from website traffic metric supplier Similarweb shows that Deribit and OKX continue to get significant traffic from China.
More than a dozen times in the last decade, China has prohibited the usage of cryptocurrencies. The most severe was enforced in September of last year.
Fearing regulatory action, a number of cryptocurrency exchanges, including Huobi and Binance, have closed their doors to Chinese traders. Chinese traders moved their focus to decentralised exchanges (DEXs) and protocols as a result of the stringent regulatory restrictions.
Chinese cryptocurrency traders have always found a way around the government’s tight crypto regulations. While many anticipated that the universal ban on crypto use would spell the end for China’s primarily underground crypto economy, traffic data reveals otherwise.
The usage of VPNs by Chinese traders has increased since the blanket ban, according to an exclusive report. Chinese traders continue to flock to centralised derivatives platforms like OKX and Deribit, according to recent data from Similarweb.
Deribit has a 12% share of Chinese traffic
Prior to the blanket ban, Huobi was the exchange of choice for Chinese crypto traders, accounting for more than 30% of trading activity. Deribit now has a 12% share of Chinese traffic, followed by OKX with 9.6%.
Another factor contributing to the increase in derivative exchange traffic could be the lack of strong Know Your Customer (KYC) methods compared to Huobi and Binance.
On centralised exchanges like Binance and Coinbase, the largest traffic sources were Russia, South Korea, the United States, and Turkey, according to the geographical data. In the month of April, Bybit and FTX were the most popular crypto exchanges.