China saw more than $ 50 billion in cryptocurrencies exit from Chinese digital wallets to other parts of the world in the past year.
According to the Arab portal for technical news, Chainalysis said: Over the past twelve months, with the Chinese economy suffering due to trade wars and the depreciation of the yuan at various points, we have seen what Over 50 billion dollars in cryptocurrency from addresses in China to foreign addresses.
and only Chinese citizens are allowed to purchase up to $ 50,000 of foreign currency annually at a financial institution.
In the past, wealthy citizens circumvented the curtailment through foreign investments in real estate and other assets. But the government has cracked down on these methods, according to a report from Chainalysis, a company that specializes in forensic analysis.
Chainalysis sells compliance and investigative software to companies and governments. The report added: This is clearly not a capital flight, but we can think of $ 50 billion as the absolute limit for capital flight via cryptocurrencies from East Asia to other regions.
holders of the controversial stablecoin Tether are using the cryptocurrency to move their money. Note that a stable currency is a digital currency that is usually backed by another asset or group of other assets in an effort to stabilize its value and reduce volatility. Tether claims to be linked to the US dollar.
stablecoins are useful for converting large amounts of cryptocurrencies, because theoretically you should not see the value of the cryptocurrency in which a person moves with extreme fluctuations.
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In total, more than $ 18 billion of Tether has been transferred from East Asian addresses to those in other regions over the past 12 months, Chainalysis said. Again, it is highly unlikely that all of this is a capital flight.
part of this activity can be explained by converting miners in China their newly minted coins into Tether and sending them to exchanges abroad. With reference to the miners, they are people who have computers that specialize in solving complex math problems to obtain new cryptocurrencies. And when they solve these complex problems, the miners are rewarded with a cryptocurrency.
China has previously taken a tough stance on cryptocurrencies. In 2017, Beijing banned fundraising ...