China is seeing a progressive increase in P2P cryptocurrency loans

The Chinese media, Sohu, has published a report on the growing proliferation of cryptocurrency lending platforms and explores the different edges in the matter.

Source

Zhang Le, described as a veteran of the cryptocurrency industry according to Sohu, said: "Currently, most of the market recognizes only two major currencies, Bitcoin and Ethereum. Currently, this company is earning interest. "

"This is just the need. When the currency is low, the people who are speculating will not be willing to sell the coins. Once they lack money, they must find such platforms. Demand has shaped this market, "said Zhang Le.

The media cited industry experts estimating that there are currently more than twenty startups operating in the cryptocurrency loan industry.

Sohu reports that the initiates described these operations in the P2P cryptography lending industry as "hardening their swords", emphasizing the risks posed by regulation, taken into account as "the largest variable in the field".

Xu Lizhen, of News Express, described the lenders through the platform as long-term cryptocurrencies that are not interesting in short-term market trading.

According to a rough translation, Xu Lizhen states that "the cryptocurrency industry is called to stop, but it has not done so". He also described loan platforms as the way in which cryptocurrency investors can "solve their liquidity problems in the down phase."

Hu Jie, of the Institute of Advanced Finance in Shanghai, said: "Currently, the business of mortgage loans in digital currency occurs mainly in a monetary circle. One party has funds (or digital currency) for loans, and the other party lacks these funds and applies for loans. Digital assets can be used for mortgages and such private commercial behaviors are allowed. "

Hu Jie also emphasized the possible contingencies associated with regulation, stating that "if an entity specializes in this business and engages in this type of loans and financial administration, it needs to have the corresponding qualifications and conditions. Otherwise, you can suspect illegal loans or illicit business. "

Internet finance lawyer Xiao Wei said: "This is a gray game. The essence is to solve the problem of asset liquidity or direct fundraising. But even in the gray industry, we should not adopt a method of market manipulation. This will only bring the 266th fraud of the criminal law to our future. The risk of sin. "