Crypto boss and enthusiast Justin Sun is in the cryptocurrency regulation limelight again, this time looking to go head-on against the crypto regulations set by China. The TRON founder, who also acts as an advisor to Huobi, a crypto exchange, hopes to implement his new ideas to bypass the Beijing trading restrictions and help the users in the country access the services.
According to the Wall Street Journal, the scheme involves a digital citizenship loophole that can be exploited through the Dominican Republic.
China On Crypto
In 2021, the Chinese government imposed a blanket ban on all cryptocurrencies, which extended to mining operations. The Chinese regulatory bodies prohibited any crypto dealings as a follow-up to the 2017 ban on all crypto exchanges in the country.
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The situation is so serious that anyone associated with or working for a crypto firm in the country could face jail sentences adding up to double digits. The law also outlaws individuals from using the coins in any transaction, left alone in the banking system, and banks are also highly prohibited from engaging in the assets.
In a turn of fortune for the crypto industry in the country, Hong Kong announced that it had created some crypto-friendly regulations that would allow businesses to work in crypto and make it a leading crypto hub.
Justin Aims to Be the Hero For China’s Crypto Enthusiasts
The defiant CEO of Wall has created a new pla to help crypto users. According to the Wall Street Journal, the defiant CEO has created a new plan that will help crypto users in China bypass the ban on crypto and use the Huobi platform for crypto trading. The move by Justin comes as the company tries to attract users in the Chinese sector and boost its revenue, given the country’s massive population.
The scheme revolves around the digital citizenship project in the Dominican Republic. In 2022, the Dominican Republic joined hands with Huobi to create a national digital token for the country known as DMC or the Dominican Coin and a corresponding digital identity.
Sun plans to have users from China sign up on the platform to create digital citizenship in the Dominican. According to Justin, this will be used for the official KYC verification. According to another Huobi spokesman, using KYC is meant to stop Chinese users from being malicious and ensure that the program is used properly.
According to a professor from the National University of Singapore, Ben Charoenwong, Dominican citizenship can help Chinese users bypass most restrictions by the country. He says that users from the country showing as Dominican and not Chinese have no boundaries. After all, the Dominican Republic is quickly embracing crypto assets for the future.
Binance Allowing Chinese Users Access to Trading
In some more news from the Chinese crypto regulation front, Binance has been under scrutiny for allowing users to trade on its platform. A CNBC report shows that the exchange helped users bypass KYC and other financial and security requirements.
The CNBC report claims that Binance was involved in training some of the people involved in the act, dubbed as angels. The report details that the angels were all volunteers, and their main work was to help people in China evade KYC and verification systems. Binance trained the Angels, who created video and blog guides for Chinese crypto enthusiasts.