China Imposes New Capital Controls; Bitcoin Price Optimistic
China has unveiled new capital control regimes that will restrict and limit overseas investment by Chinese corporations. Similar to China’s crackdown on Wealth Management Products (WMPs) in October, analysts predict that the tightened regulations on overseas investment will increase the demand for Bitcoin. In October, China introduced various regulatory frameworks to control the country’s $13 trillion worth of WMPs. Almost immediately after the announcement from the People’s Bank of China, the price of Bitcoin increased, surging by three percent overnight. This month, the Chinese State....
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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....
Amid China’s Bitcoin price reaching all-time highs on BTCC, an industry figure has denounced the currency’s use as a tool against capital controls as useless. In a post earlier today, Bitquant founder Joseph Wang described Bitcoin as “pretty much totally and completely useless for getting money out of China.” Bitquant, a FinTech research laboratory based in Hong Kong, has produced in-depth literature on digital currencies, including a macroeconomic model of Bitcoin. Wang: ‘Nobody interested’ in a Bitcoin capital solution. Despite even mainstream news outlets reporting Chinese investors are....
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....
Assuming there is any truth to these rather optimistic claims, the next step will come in the form of the ECB giving Greek banks access to cheap funding. In an incredibly surprising turn of events, it looks as if Greece is getting ready to lift capital controls but the end of the year.After facing an economic disaster not too long ago, the country has tried to recover. For some unknown reason, things seem to be going a lot better than most people expected. Many people have been following the news about Greece and feared the situation in the country would only become worse over time.....
India’s new PM, targeting people who skirt taxes, outlawed 500 and 1,000 rupee bills – a staple in ATMs in the country. He did it in what’s being called a “shock and awe” manner so that black market savers didn’t have enough money to figure something out to do about it. People have stood in line at banks to receive new currency and ATMs, no longer stocked with the larger denominations, are running out of money. The moves will likely lead to an increase in demand for Bitcoin in India. When Beijing issued new capital controls late 2015 to ensure money didn’t leave mainland China, Bitcoin....