Citizens Used Cryptocurrency to Move $50B out of China Last Year
August 27, 2020
Chinese citizens moved $50 billion out of the country in the last 12 months, using cryptocurrency to get around the nation’s rules.
China limits the amount of money citizens can move out of the country to roughly $50,000 per year. Citizens have previously needed to use creative endeavors like foreign investments in real estate or creating shell companies to move money out of the country, but cryptocurrency has made the process much easier.
The analysis comes from the firm Chainalysis, a crypto forensic firm. The firm notes that not all of the crypto activity may be attempts to avoid currency regulations. They saw a spike as the coronavirus pandemic started, and it is possible that investors were looking for a safe harbor as assets were losing value.