The Chinese government launched one of the toughest anti-cryptocurrency policies in September after imposing a blanket ban on cryptocurrency mining in May.
The September crackdown on cryptocurrency made any crypto-related transactions illegal and banned central forex trading platforms from providing any services within the country of China.
The ban on the operations of foreign cryptocurrency exchanges has led to an increase in the downloading of many anonymous wallets and the use of Defi protocols and Dex exchanges.
The rising popularity of DEX platforms has also led to an increase in the number of scams associated with them.
According to a recent report by a prominent Chinese insider on Twitter, the number of scams related to fake “metamask” wallets is on the rise.
As centralized exchanges ban Chinese users, some users seek decentralized wallets. As a result, a large number of scammers forged fake metamask wallets for fraud, resulting in losses for many Chinese inverstors.
— Wu Blockchain (@WuBlockchain) December 11, 2021
Thousands of investors lost a large part of their investment due to these fake scams.
What was stated in the report:
Since centralized trading platforms ban Chinese users, some users are seeking decentralized wallets.
As a result, a large number of scammers faked fake “metamask” wallets and made them look like official ones with the purpose of fraud, which led to losses for many Chinese investors.
DEX platform volumes have skyrocketed in the wake of the Chinese crypto ban and insiders have reported increased interest from Chinese investors to learn about Defi.
China Will Continue Anti-Cryptocurrency Policy:
The decentralized nature of cryptocurrencies makes it almost impossible to ban them, thus governments that view them as a threat to their monetary policy often ban exchanges and platforms that assist in cryptocurrency trading.
However, the cryptocurrency ecosystem has grown exponentially with Dex and Defi decentralized exchanges which is a multibillion dollar industry now.
Defi offers all banking facilities with added privacy which makes it a popular choice.
Dydx, is a relatively smaller DEX protocol that broke daily trading volume records and outperformed top DEX platforms like Sushiswap by a large margin.
Many believe that the trading volume of Dydx was contributed by the influx of new Chinese traders.
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