Chinese Exchanges Launch P2P Platforms
OKEx and Huobi Pro launch peer-to-peer trading to navigate China’s exchange ban.
On October 30, 2017, Chinese exchanges OKEx and Huobi Pro announced the launch of peer-to-peer (P2P) trading platforms as a way to circumvent China’s sweeping ban on fiat-to-crypto exchanges. The platforms allowed users to match directly with one another to buy and sell Bitcoin and other cryptocurrencies using fiat payment methods outside of the exchanges’ custody.
This move demonstrated the adaptability of the crypto industry in the face of restrictive regulation. While Chinese authorities had forced major exchanges like BTCChina to shut down traditional operations, OKEx and Huobi quickly pivoted to maintain relevance and retain their user bases. The launch of P2P services also marked the beginning of these exchanges’ transformation into global players.
Both companies would eventually relocate or expand operations abroad, with Huobi establishing a base in Singapore and OKEx later anchoring in Malta.The October 30 pivot highlighted how China’s regulatory crackdown, intended to suppress crypto trading, inadvertently pushed domestic companies to innovate and expand internationally, accelerating the globalization of the industry.