Back then, the price premium difference reached only $200. Last time we checked, on the 31st of August, it stood at only $150. Now, it has risen to more than $400.
The story is repeated for the next two biggest currencies. Ethereum is more than $30 cheaper in China, giving it a price premium of more than 10%.
That’s what traders call free money, but arbitrage isn’t playing any significant role currently, either because prices are moving too fast or because CNY is not available.
While Bitcoin Cash trades at just $400 in China, $150 less than its western price of around $550. Even ViaBTC, which has a more western audience, is currently trading far lower at $480.
South Korea, for both eth and bch, seems to be neutral in price, generally standing at around western prices, with the country so seemingly not affected any differently.
The Chinese have woken up to some terrible news recently as far as this space is concerned. Their government has outright banned ICOs, the first and only country in the world to do so.
Rumors are now circulating the authoritarian communist party of China may bring down the hammer and in a heavy fisted manner may outright ban crypto-exchanges.
No one is sure whether the country will actually do so. There has been no official announcement yet with anonymous sources seemingly leaking the news, either to derail the plans or to see what the public response would be.
So far, most in the west have responded with incredulity. It’s just incomprehensible to most to see how an open free market country can take such a drastic action.
But in China, the story may be different. It is not clear whether they are more scared or angry, a potent combination. With the country’s citizens having billions at stake.