If you follow Bitcoin news then you are probably aware that China landed a massive blow against the virtual currency in September of 2017. The country mandated that all Chinese exchanges which permitted the trading of Bitcoin shut down and cease operations. This effectively stopped anyone in China from trading Bitcoin and sent the value of the digital currency into a tailspin. Even though there are hopes this ban will be lifted in the future, for now using a VPN might be a way to trade Bitcoin from China.
The Bitcoin Ban in China
China already has a pretty bad reputation when it comes to Internet freedom. Those who read the VPNaccounts blog will be familiar with how the country has sought to severely limit website access through its “Great Firewall” and other measures. It should come as no surprise that Bitcoin ultimately landed in the Chinese government’s crosshairs. It is unregulated and peer-to-peer, two things China frowns upon.
The announcement came in mid-September 2017. All exchanges which permitted trading of Bitcoin were required to cease operations. As is typical in China, it also came without any warning. The cryptocurrencies OKcoin and Huobi were immediately affected and so was Bitcoin on a global scale. The initial 24-hour loss in the wake of the decision was a 21% decline in Bitcoin. Investors could do little more than watch as the value of their investment tumbled.
Some have accused the Chinese government of hypocrisy where Bitcoin is concerned. Mining Bitcoin has always been big in China and it seems illogical that the country would want to negatively impact this industry. But, as always, the issue revolves around Bitcoin’s decentralized nature. China’s leaders simply do not like anything they cannot control.
Can You Trade Bitcoin in China with a VPN?
Unfortunately, the attack on Bitcoin exchanges in China may have been just the beginning of a protracted war against cryptocurrencies. Some regulators in China have hinted at a sweeping ban of Bitcoin that will effectively eliminate the transfer of the currency on all platforms.
If this is the case, one can reasonably expect China to act against all Bitcoin trading platforms. To prevent access, the country would only need to restrict access to these platforms in the same way that they restrict access to other websites. With a state-controlled ISP system, it is very easy for China to maintain an iron fist over Internet accessibility.
Bitcoin exchanges that could be affected by a sweeping ban would include Coinbase, Okcoin, Bithumb, Kraken, and even Localbitcoins. All of these platforms facilitate the trading of Bitcoins among individual users. If a ban is put in place by the Chinese government, individuals within China’s borders would find themselves unable to access these sites.
In the past it has been common for Internet users in China to circumvent website restrictions with a VPN. There are some indications that this may become more difficult. China has also began working to prohibit VPN usage in the country and has even arrested some individuals within the country for selling VPN software. Still, using a VPN is still not technically illegal in China. There are a few things about using one that Bitcoin traders should know, however.
First, it is important to obtain VPN service before you arrive in the country. You may find that access to VPN sites like VPNaccounts.com is restricted once you arrive. The key is to purchase service before you leave for an extended stay. If you have relatives or friends that are already living in China, you may be able to purchase service on their behalf. We offer many different packages which will suit various needs.
Next, you will need to configure your own device for the VPN. This is a simple matter and only requires you to input the credentials you are given by your VPN provider. You do not need to download any additional software in order to use the VPN. All devices today have a built-in VPN client.
Once you have configured your device for your VPN, you’ll then need to choose a server option. If you want to trade Bitcoin through an exchange, servers that are based in the United States or the United Kingdom are a good option. Just make sure that the server location you choose also allows Bitcoin trading. As of the present time, China is the main country which is taking a strong stance against Bitcoin trading.
After your server has been selected and you have established an Internet connection, just connect to the VPN. Your communication with the Internet will then be encrypted and your actual location will become obscured. This is accomplished by the changing of your IP address. Then, you will be able to log into your Bitcoin exchange and trade as normal. It will appear that you are accessing the site from your chosen server’s location.
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