RPT-Trade tensions and a weaker yuan drive Chinese crypto demand, market players say

RPT-Trade tensions and a weaker yuan drive Chinese crypto demand, market players say

 

(Repeats Wednesday’s story without changes)

* Trade war, weaker yuan sees Chinese turn to crypto

* Digital coins help circumvent tight capital controls

* Over-the-counter trading desks widely used

* Tether, a stablecoin, widely popular

By Tom Wilson and Gertrude Chavez-Dreyfuss

LONDON/NEW YORK, Aug 14 (Reuters) – Trade tensions between the United States and China and a weakening yuan are boosting demand for cryptocurrencies among Chinese investors, market players from Asia to New York said.Exchanges, researchers and brokers told Reuters they have seen an uptick in activity at crypto trading venues popular with Chinese. They said over-the-counter (OTC) brokers, which act as middlemen for buyers and sellers, have seen much of the activity.Measuring crypto trading volume in China or elsewhere is highly difficult.While digital wallets used to send and receive coins can be tracked on the blockchain technology that underpins most coins, the geographical location of senders cannot. And the Chinese government’s 2017 ban on crypto platforms means there is little data on the sector in the country.Still, the impact of the U.S-Sino trade war on China’s economy and its falling currency are driving some larger investors to shift money from the yuan to cryptocurrencies, said Andy Chung, head of operations at OKEx, a Malta-based platform popular among Chinese.China’s economy has been hit by simmering trade tensions between Washington and Beijing. Data on Wednesday showed the slowest growth for Chinese industrial output in 17 years, suggesting tariffs are impacting demand in the world’s second-largest economy.And last week, China allowed the yuan to break through the […]