The crypto-currencies are not yet mainstream, but there are signs that they are slowly gaining momentum.
The news site Bitcoin.com reported Monday that there were over 500,000 registered users in China’s second largest crypto-cryptocurrency market, with a market cap of $15.4 billion.
China has become a popular destination for trading and investment for crypto-markets, and China is currently the third-largest market for crypto trading.
According to Bitcoin.org, China’s trading volume for the crypto-trading platforms is around $10 billion a day.
China has become the largest market for cryptocurrency trading with over a third of all cryptocurrencies traded there.
Chinese crypto-marketplaces have been on a roll in the last year, as the Chinese government has been cracking down on cryptocurrency exchanges and bitcoin trading platforms.
According a report from Bloomberg, the government recently shut down over 200 cryptocurrency exchanges, including those that were based in China.
Bitcoin.cn has been one of the largest cryptocurrency exchanges in China, according to the report.
Chinese exchanges have been criticized for failing to protect users from malware and for having insufficient security measures in place.
A Chinese man, identified as Wang Chun, was arrested in late July after allegedly using Bitcoin to buy and sell counterfeit coins in Shenzhen, a major trading hub in China and home to one of China’s largest Bitcoin exchanges.
Wang was charged with money laundering, cybercrime and theft.
Wang was also accused of running a botnet of 100 botnets that used Bitcoin and other cryptocurrencies to launder money and distribute illegal goods, according Bloomberg.
In July, Chinese authorities arrested two former senior officials at the People’s Bank of China (PBOC) for allegedly manipulating bitcoin prices.
The PBOC announced on July 14 that it was investigating the alleged manipulation.
In the wake of the recent arrests, Chinese regulators have tightened controls on bitcoin trading.
In July, the PBOC said it would begin a crackdown on cryptocurrency trading, saying it would not allow exchanges to offer more than one cryptocurrency on their platforms.
Chinese regulators have also banned virtual currency trading, which has been an integral part of the cryptocurrency market.
The latest arrest came days after Chinese authorities shut down the biggest cryptocurrency trading platform in the country.
In the case of China Bitcoin Trading, it was revealed that the official Chinese bitcoin exchange, Huobi, is in possession of thousands of bitcoins, according Bitcoin.co.uk.
The firm said in a statement that it is cooperating with authorities and has launched a criminal investigation into the matter.