Chinese Crypto-Investors Moving Funds Out of China
Whenever there is a discussion about Cryptocurrencies, China is the country that is mentioned in every topic related to digital assets. It is one of the top countries and economic giants that has and is still investing a lot of resources in the digital-currency sector.
Whether it is introducing central bank digital currency or constructing a blockchain-based hospital, China has proven to be ahead of all other countries. Therefore, it would come as a shock to everyone when it is revealed that there is a large portion of cryptocurrency investments that are leaving the country.
As per reports, more than $50 billion worth of cryptocurrencies has been moved out of China into other parts of the world in the past year. The on-chain analyzing firms have confirmed that the money has been moved out of China from the wallets based in China.
As per many analysts and commentators, there are very high chances that the investors and stakeholders are transferring more money out of the country that they are allowed to.
In China, citizens are expected to strictly abide by the policies and rules when it comes to purchasing foreign currencies. The citizens are allowed to buy up to $50,000 worth of foreign currencies annually, through a financial institution.
However, in the past, the wealthy class in China has managed to find a way around such regulations either via foreign investments in real estate or finding other ways to move assets. But the Chinese authorities have managed to catch such acts and have put a stop to these methods over the course of time.
Yet, the Government of China has stated that at present, the cryptocurrency industry is the channel that the investors are using to move their funds in and out of the country.
The Government of China has revealed that in the past 12 months, the country has faced a lot of problems with respect to its economy. Its economy has suffered a lot due to the devaluation of yuan in different sectors as well as due to trade wars.
However, the Government has pointed out that they have observed that more than $50 billion worth of crypto-assets have moved from China to other countries. The funds have been moved from China-based wallet addresses to international wallet addresses.
In order to keep a close eye on the crypto-industry, the Chinese Government has acquired the services of Chainalysis. Chainalysis is an on-chain data collecting/analyzing firm that provides investigation and compliance software to governments and businesses.
The Chinese Government has revealed that the investors have been found making such transactions using Tether (USDT). Tether (USDT) is a stablecoin that is pegged with the largest fiat currency in the world “United States Dollar – USD”.