Cryptocurrency
Crypto Assets of $50 Billion Moved From China in the Past Year
As reported on Bloomberg, “About $50 billion in cryptocurrency assets have left China in the past year, a possible indication that investors are dodging rules that limit how much capital they’re allowed to transfer from the nation, according to new research by blockchain forensics firm Chainalysis. “The controversial cryptocurrency Tether accounted for more than $18 […]
As reported on Bloomberg, “About $50 billion in cryptocurrency assets have left China in the past year, a possible indication that investors are dodging rules that limit how much capital they’re allowed to transfer from the nation, according to new research by blockchain forensics firm Chainalysis.
“The controversial cryptocurrency Tether accounted for more than $18 billion of the outflows from East Asia in the period, the firm said Thursday in a report. Tether, a so-called stablecoin because its value is pegged to the U.S. dollar, accounts for 93% of stablecoin use in the region.
“’Stablecoins like Tether are particularly useful for capital flight, as their USD-pegged value means users selling off large amounts in exchange for their fiat currency of choice can rest assured that it’s unlikely to lose its value as they seek a buyer,’ Chainalysis said in the report.
“China limits citizens to moving the equivalent of $50,000 a year out of the country. Wealthy Chinese circumvented this rule in the past by making overseas real estate investments or creating shell companies, Chainalysis said. It’s not known how much of the $50 billion, or the Tether transfers, stem from capital flight…”