Founded in June 2011 in Shanghai, BTC China is the second largest bitcoin exchange in the world, just behind Bitfinex, according to bitcoin charts.
Despite the Chinese government’s efforts to limit bitcoin’s influence on the local market, and potentially on the trading of Yuan globally, the cryptocurrency trade remains very active in China mostly as a speculative asset class as explained by BTC China CEO and Co-founder, Bobby Lee.
“Bitcoin is an alternate asset class in China, an investment, as such a lot of speculators are coming in. Because it does not depend on a trusted party, bitcoin can be traded freely. And with a limited amount of bitcoin globally, there is perception that its future value potential is very high,” said Lee.
The impact of bitcoin activities in China, which today is mainly around speculative trading, looms large. Quartz cites a recent Goldman Sachs report that says 80% of bitcoin volume is now exchanged into and out of the Chinese yuan, surpassing the US dollar. All this despite the Chinese government’s effort to clampdown on the cryptocurrency in December 2013 – forbidding banks and payment services from accepting bitcoin transactions.