$50 Billion Withdrew from China Through Cryptocurrencies
$ 50 billion withdrew from China through cryptocurrencies in a year
With the help of digital money, citizens violate restrictions on the withdrawal of capital from the country. For these purposes, stablecoins are actively used, in particular, Tether
Over the past year, over $ 50 billion has been withdrawn from China through cryptocurrency, Chainalysis found out. Its experts found confirmation that citizens are violating the restrictions on the withdrawal of capital from the country. Chinese residents are allowed to buy foreign currency worth up to $ 50,000 per year.
“Over the past 12 months, against the backdrop of the turmoil in the Chinese economy due to trade wars and the devaluation of the yuan, we have recorded the withdrawal of more than $ 50 billion of capital from Chinese to overseas addresses. Not all of this money should be classified as capital outflows. But we consider $ 50 billion as an absolute ceiling for capital outflows through cryptocurrencies from East Asia to other regions,” – the report says.
Experts noted that Tether stablecoin is used in such transactions. It avoids the risk of volatility in the movement of capital and excessive regulatory attention. However, this can be partly due to the conversion of coins mined by Chinese miners into USDT and subsequent sale on foreign exchanges.
“Probably, the economic downturn caused the capital outflow from China. However, a significant part of Tether’s movements could be associated with the actions of East Asian cryptocurrency traders, who took their assets to foreign exchanges to trade there during the increased volatility in the crypto market,” – concluded Chainalysis analysts.
China hosts over 50% of the computing power on the bitcoin network. Earlier floods in the Chinese province of Sichuan led to a drop in the hash rate of the leading mining pools by 10-20%.
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