China crypto industry is still active, Deribit and OKX are winning hearts

Despite a blanket prohibition on crypto transactions and foreign exchanges last year in China, Deribit and OKX is winning hearts.
Despite a blanket prohibition on crypto transactions and foreign exchanges last year in China, Deribit and OKX is winning hearts.

Despite a blanket prohibition on crypto transactions and foreign exchanges last year in the nation, data from website traffic metric supplier Similarweb shows that Deribit and OKX manage to get huge traffic from China.

In the last decade, China has outlawed the use of crypto more than a dozen times. The one imposed in September of last year, though, is considered to be the most severe.

Fearing regulatory action, several crypto exchanges, including Huobi and Binance, have cleaned up their services to Chinese traders. Chinese traders moved their focus to decentralized exchanges (DEXs) and protocols as a result of the harsh regulatory regulations. As TheCoinRise reported, this led to a massive surge in the DeFi industry.

Chinese crypto traders have always found a method to get over the government’s tight crypto regulations. While many anticipated that the blanket ban on crypto use would spell the end of China’s primarily underground crypto economy, traffic data reveals otherwise.

Following the blanket ban, Chinese dealers have increased their use of VPNs. Chinese traders are still flocking to centralized derivatives platforms like OKX and Deribit, according to the data from Similarweb.

Huobi used to rule China before crackdown

Before the blanket ban, Huobi was the exchange of choice for crypto traders in China, accounting for over 30% of the trading volume on the platform. However, in terms of Chinese traffic, Deribit now has a 12% share, followed by OKX with 9.6 percent.

When compared to Huobi and Binance, another key cause for the increase in traffic on derivative exchanges could be the lack of strict Know Your Customer (KYC) measures.

Russia, South Korea, the United States, and Turkey were the top traffic sources on centralized exchanges like Binance and Coinbase, according to the data. Noticing the popularity, the crypto exchange giant Binance opened its first customer service center.