Chinese Exchange: FX Controls Impact Will Be Limited
China has stepped up yet another round of capital controls. It's central bank has just suspended some foreign exchange related services of several foreign banks. How will it impact the business of local Bitcoin exchanges and the overall bitcoin market? The Chinese government hopes to stop ongoing capital outflows, mostly related to the depreciating yuan currency. Only a few months ago the government lowered withdrawal limits for credit cards. Besides the obvious reasons for every fiat currency being inflated, after its recent entry into the global IMF reserve currency club, China needs to....
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The price of bitcoin continues to rise, led primarily by the exchanges in China, which have, oftentimes, been trading at a premium of $10/BTC higher than the other major exchanges around the world. With China driving such an increase in the bitcoin price, many have been speculating that it could be driven by capital controls. In China, the law stipulates that individuals cannot send more than the equivalent of $50,000 out of the country in a year. To get around this, individuals have hired smugglers to get cash out of the country, bought extremely expensive real estate in cities like New....
It is likely the recent Bitcoin price surge attracted a lot of attention from the Chinese government. There has been a lot of speculation regarding Chinese investors buying Bitcoin to hedge against the declining Yuan. China has always been the driving force behind Bitcoin, as cryptocurrency is largely unregulated in the country. That situation is coming to change, as the country is looking to impose their version of capital controls on Bitcoin. It was only a matter of time until the government started paying close attention to this trading market. However, it remains to be seen how....
China, a country once believed to be one of the top financial powerhouses in the world, is starting to show its true colors. In recent weeks, the Chinese Yuan has been devaluating at a rapid pace, and many wealthy investors are moving all of their funds out of the country while they still can. But the Chinese government is not sitting by idly, and is....
Rectifying this situation will not be an easy feat either. Further devaluing the Yuan seems the only plausible scenario, although it is impossible to predict the outcome. The recent Bitcoin price surge is mostly driven by Chinese traders. Increasing fear of capital outflows and the ongoing Yuan devaluation make Bitcoin a viable alternative investment opportunity. It is evident the Chinese government is running out of ideas to stabilize the economy. In fact, it appears the Yuan will continue to slide down a slippery slope. To be more precise, it seems the increasing Bitcoin demand hints at....
In the long run, this news will be positive for the bitcoin ecosystem as a whole. The bitcoin world was rather shocked to find out the PBOC had another meeting with exchange operators. Although that had been announced weeks in advance, the market responded in a rather negative manner. As it turns out, this meeting took place to inform domestic exchanges about the AML and forex rules affecting all Chinese companies. Not adhering to these rules can result in the exchanges being shut down, albeit no one is violating the rules right now. It is not surprising to learn AML and foreign exchange....