Hong Kong Exchange Tidebit Seeks to Capitalize Upon Chinese Cryptocurrency Crackdown
Hong Kong-based bitcoin exchange Tidebit is actively seeking to attract Chinese investors who have been forced from China’s markets after the central government’s recent cryptocurrency crackdown. For Tidebit, the crackdown comprises a once-in-a-lifetime opportunity to expand its operations by capitalizing upon the exodus of capital from China’s bitcoin economy.
Tidebit Is Hoping to Capitalize the Flood of Capital That Has Been Displaced From China’s Cryptocurrency Markets
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China’s cryptocurrency crackdown has significantly disrupted bitcoin markets in recent months, causing a flood of volume to withdraw from Chinese virtual currency exchanges. One company hoping to capitalize on the sudden cryptocurrency capital flight from China is Tidebit, a Hong Kong-based bitcoin exchange.
Tidebit was launched in 2015 by former think tank researcher Chen Ping and is owned by Tideisun Group. Chen is known for his role in setting up the iSun Affairs online magazine – a media outlet mainly concerned with political and social issues that are typically censored on the Chinese mainland.
Terence Tsang, Chief Operating Officer of Tideisun Group, told Chinese media that “the ban did not stop [Chinese investors] from buying cryptocurrencies… In the last few weeks, we have seen a lot of mainland customers opening up accounts at Tidebit. They still want to play the game. I see a growing need in that they will come to Hong Kong or Singapore to buy cryptocurrency.”
Hong Kong-Based Bitcoin Markets Have Surged Following China’s Cryptocurrency Crackdown
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Tsang describes how Tidebit grew from of “a documentary video platform”, stating that the platform “liked users to pay using Bitcoin or Ethereum and… asked, ‘where do they get Bitcoin?’” Upon realizing that “there weren’t many virtual currency exchanges in Hong Kong”, the entrepreneur claims to have decided to start his own.
The platform now handles transactions of approximately 50-100 bitcoin daily, and users can access its customer service through the popular messaging platform Whatsapp. Vincent Poon, main progress hacker at Tidebit, states that the company “also offer[s] different products like payment solutions, wire transfers and different types of blockchain projects. [Tidebit is] not just a trading platform, we also have a blockchain ecosystem.” Poon describes the company’s future plans to expand to offer more trading products, stating, “right now it’s a trading platform to buy Bitcoin and Ethereum. We are planning to offer more financial products like futures and derivatives” in addition to “getting a bitcoin exchange license in Japan.” Tsang also stated that company is hoping to enter the bitcoin markets of Singapore and Taiwan.
China’s cryptocurrency crackdown has driven a high volume of recent trade across Hong Kong’s bitcoin markets. On Localbitcoins, Hong Kong volume established new record highs during the weeks of August 19th and September 2nd – with nearly $5.7 million HKD and approximately $6.15 million HKD being traded during those respective weeks. The recent expansion of Hong Kong’s cryptocurrency economy has attracted the attention of the territory’s Securities and Futures Commission (SFC), who issued a statement pertaining to initial coin offerings, warning that many digital tokens may fall under existing regulatory frameworks enforced by the SFC.
Do you think that Hong Kong’s cryptocurrency markets will continue to attract capital from investors formerly trading on Chinese platforms? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, TideBit