Could China's Strict Capital Control Boost Investments in Bitcoin?
In its efforts to keep money within its borders, China recently imposed a nationwide capital control law that would limit one's ability to move money abroad. According to the recent reports, the Chinese government now requires a 20% margin on all currency forwards. It means that a bank, which has sold $100 of the currency forward, would now be required to deposit $20 at the central bank. The said law reminds one of the recent Greek crisis, where the country had taken similar steps to control the devaluation of its national currency. Like Greece, China also needs to keep its funds at home,....
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For example, if a foreign company wanted to export items to China, they will not be able to do so due to capital control. The financial turmoil in China is far from over by the look of things, and tighter capital control over foreign companies in the region are being enforced. This has a crushing effect on Japanese companies, as their Chinese subsidiaries struggle to get payments across. As it becomes harder for the Chinese to move funds in and out of the country over the past few months, all companies dealing with Chinese subsidiaries will be affected at some point. For Japanese firms,....
Circle China to start operations in the Chinese market after raising over $60 million in investments from a group of leading investment firms in the region. Circle, the blockchain based payments company, is now eyeing China. The US company, which had recently partnered with the United Kingdom-based banking major Barclays, today announced that it has raised over $60 million in funding as part of the strategic investment to create ‘Circle China’, its new regional identity. The investment round was led by Breyer Capital, with additional support from regional search engine giant Baidu, IDG....
The Boost community has seen huge developments in the last month. Features from the highly anticipated Boost DeFi app have started going live and by mid-November even more will be available. Boost’s native token, Boost Coin, has seen amazing results so far. Analysts are predicting Boost Coin will reach $1 as the app gets closer […]
As capital outflow from China continues to increase, the possibility of Bitcoin reaching $800 seems to be more than ever. Bitcoin has been going strong since the past few weeks. The cryptocurrency which was priced at around $640 in mid-October has surged past the $700 mark and now stands at $725, after falling to $690 briefly over the weekend. At the current pace, the price of Bitcoin reaching $800 is imminent. As to the reason behind the recent increase in price, the largest since June 2016 is the constant demand for Bitcoin in the Chinese market. Lately, China has been witnessing an....
China has been known for its strict control over capital outflow; the government has introduced regulations that limits capital outflow to 50,000 yuan per year per individual. However, the Chinese have been innovative at finding different ways to move money out of the mainland to invest in overseas assets. In the wake of the recent devaluation of yuan, the Chinese government has woken up and tightened the screws around illegal overseas transactions. As the Chinese government is trying to stabilize the economy by devaluing the currency and liquidating its foreign exchange reserves,....