Chainalysis Company found outthat over the past year, over $ 50 billion was withdrawn from China through cryptocurrency. In some confirmed cases, the citizens of the Celestial Empire violated the restrictions on the withdrawal of capital from the country.
Experts said that the withdrawal of capital over the past 12 months occurred amid shocks in the Chinese economy, which occurred due to trade wars and the devaluation of the yuan.
However, the report emphasizes that not all withdrawn money should be classified as capital outflow:
But we consider $ 50 billion as an absolute ceiling for capital outflow through cryptocurrencies from East Asia to other regions, concluded in Chainalysis.
It is known that in such operations the stablecoin Tether was used, thanks to which users successfully avoid the risk of volatility when moving capital. Roughly speaking, stablecoins allow you to transfer large amounts without sudden fluctuations in the value of the cryptocurrency.
In addition, these are the inhabitants of the Celestial Empire thus limited from the attention of the supervisory authorities. Over the past year, the stablecoin Tether, worth more than $ 18 billion, has successfully moved from addresses in East Asia to addresses located in other regions. This, according to experts, is also not a fact of capital outflow.
Chainalysis explains such movements by the fact that Chinese miners convert their fresh coins to Tether, sending them to exchanges that are located abroad. Experts also associate the movements of the stablecoin with some events: for example, the support of the blockchain by the head of China Xi Jinping in October 2019, as well as a massive sale in mid-March 2020 after the recovery of the bitcoin price.
Header image: Somag
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