Chinese crypto operators are contemplating large-scale mergers and acquisitions to evade the ever-tightening grip of the Chinese authorities. As reported by a local media, the fragmented digital asset sector in the nation is being bought under examination. As regulations become stringent, the companies are looking for ways to combine their market hold.
The financial regulators of various Asian countries are on full swing mode to probe crypto industry players. Be it miners, crypto trading hubs, or exchanges; all are under scrutiny. Mergers and acquisitions are being discussed rampantly without making a lot of noise about it.
Chinese crypto operators view COVID-19 as an opportunity. Globally, mergers and acquisitions in the crypto sector have dropped around 40 percent. In the same period, Chinese crypto operators have reportedly increased M&A’s from earlier 14 percent to 22 percent. The increase in Asian collaborations, takeovers, and mergers can be attributed to the rising scrutiny by the authorities.