China’s crackdown on crypto may escalate DeFi growth
China’s total ban on crypto assets might eventually be favorable for decentralized exchanges (DEX) that offer peer-to-peer crypto transactions without any central authority or intermediary.
The statement is backed by data provided by Coindesk which indicates that native tokens of Uniswap and SushiSwap, which are typical examples of decentralized exchanges (DEX), increased by 22% and 18% in 24 hours whereas the centralized exchanges have fallen since.
Denis Vinokourov, head of research at Synergia Capital, told CoinDesk:
“The great rotation into everything decentralized is upon us and all thanks to the latest and undoubtedly most aggressive crypto ban by China.”
He added,“ Decentralized autonomous organization Maker’s DAI stablecoin will likely gain substantial market share versus Tether as a result.”
On September 24, the People’s Bank of China made all crypto asset-related activities illegal and banned foreign exchanges from providing services to users in mainland China. The bank also said that Tether (USDT), the stablecoin with the largest market capitalization, will not be accepted like Bitcoin (BTC) and Ethereum (ETH).
Cryptocurrency exchange Huobi has already suspended new user registrations in China to comply with the new regulations. Binance reportedly took similar steps.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow