China National Radio is Accusing OKEx of Illegally Trading Crypto Futures in China
OKEX still operational in China despite ban
Popular crypto exchange OKEx is being accused of operating illegally in China. The reports were revealed by the China National Radio famously called the Voice of China. The radio alleged that the exchange has been illegally working with several Chinese Clients. China banned crypto trading last year and also banned all exchanges from operating in the country.
OKEx which is the third largest exchange in the world based on the trading volume, currently trades around 1.8 billion dollars per day. The current report by the radio is part of a series which aims to reveal the secret behind digital currencies. The report indicated that OKEx owner is still operating the Company in Beijing for its Chinese investors. The report continues to state that the movement of the exchange’s headquarters from Beijing to Belize and then to Hong Kong was in name only since the company remained well rooted in China.
OKEx investor Yang says that the exchange is carrying out crypto futures transactions which use leverage to multiply trade results even though the exchange call them Contract transactions. Voice of China also reported that OKEx has a specific point-point transaction which allows their customers to pay using Alipay or even Wechat accounts despite the fact that China banned transactions between cryptocurrency and fiat in the country.
The China National Radio added that Yang and other investors actually reported the exchange to the public security, industry and commerce departments and were assured that the Financial Bureau was handling the matter. Our attempts to contact OKEx management were not successful since the exchange refused to comment on the matter.
During the first quarter of this year, China blocked all foreign and domestic exchanges from operating in the country citing financial risks. However, despite the ban, we established that Blockchain and Crypto developments are still growing and becoming more popular in the country.