The Chinese state news agency seems to strengthen its position on the OTC exchange of crypto and foreign ICOs, which are still active in the country, calling them an attempt to circumvent the existing rules. The report published by Xinhua News Agency describes in detail how easy it is to acquire cryptocurrency assets via the OTC channel.
Journalists have registered on exchanges such as Huobi Pro and bought Bitcoins using available payment tools such as AliPay. After the ICO prohibition last year issued by the People's Bank of China, domestic stock exchange platforms started using OTC and moved their operations abroad.
Relying on a report published by the Chinese Commission on Financial Security on the Internet, the news agency stressed that from November last year, 21 OTC exchanges remain active among Chinese investors, while these platforms are located abroad, e.g. in Hong Kong, Japan, and the USA. Moreover, the report also identifies trading platforms that are based outside of China but are available to Chinese investors who can participate in buying the first tokens via OTC channels. In addition, the agency stated that all these activities are only new attempts to circumvent the existing rules and called for more stringent regulation. These reports also apply to ICOs, which have moved the place of registration outside of borders: "Currently, some ICO projects are being transferred abroad in order to continue operations. Although they are officially set up and issuing tokens abroad, their project development, key personnel and investors are based in mainland China." - was stated in the CCFS report.
Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is still trading around the weekly pivot at the level of $7,827, so the breakout through the technical resistance at the level of $9,146 has so far failed to occur. The next price target below the weekly pivot is the technical support at the level of $7,531.