Chinese Government To Impose Capital Controls On Bitcoin Exchanges
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....
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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....
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....
Last week, Cointelegraph reported that the Indian government had planned to ban the importation of gold and impose heavy taxes on gold investors. On Dec. 1, China also restricted the importation of gold in order to prevent capital leaving the country. Over the past few months, the Chinese central bank and government have imposed heavy financial regulations for capital controls, cracking down on Wealth Management Products (WMPs), foreign investment and the transfer of money. The latest strategy implemented to prevent the devaluation of yuan is the restriction of the importation of gold. The....
But there is more, as financial institutions will have to report international transfers exceeding 200,00 yuan. China has been imposing various degrees of curbing capital outflow throughout 2016. Not all of these attempts have been successful, but the government has come up with a new plan. Foreign currency purchases will be restricted even further moving forward. In doing so, the government aims to reduce the amount of money leaving the Chinese economy. Converting Yuan to foreign currency will become more difficult for everyone living in China. Additional information needs to be provided....
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....