$50 Billion in Crypto Transferred Outside China in 2019

Chinese investors have to procure the cryptocurrencies from OTC desks.

Chinese nationals might be inclining towards cryptocurrencies for transferring their money outside the country as blockchain analytics firm Chainalysis found out that around $50 billion in digital currencies left China last year.

On a report published on Thursday, the New York-headquartered firm detailed that most of the transactions were made in stablecoins, whereas Tether alone accounted for $18 billion of the outflows.

“Stablecoins like Tether are particularly useful for capital flight, as their USD-pegged value means users selling off large amounts in exchange for their fiat currency of choice can rest assured that it’s unlikely to lose its value as they seek a buyer,” Chianalysis stated in the report.

Indeed, Tether always remained popular in China following the communist government’s ban on crypto trading platforms in 2017. Traders often head to over-the-counter (OTC) desks to get their hands on stablecoins, usually Tether, and transfer them to crypto exchanges for trading. Given the demand, the stablecoin is even sold at a premium price in the Chinese market.

China limits the yearly outflow of yuan outside to the country to only $50,000. This forces the wealthy nationals to invest in overseas real estate or create shell companies to circumvent the rules, and now crypto is turning out to be a much easier option.

The blockchain analytics firm, however, did not confirm if the outflowed digital currencies from the region were used for moving capital outside.

Tether gained popularity as many crypto exchanges adopted this US dollar-pegged crypto to offer fiat-like trading experience. The company itself, however, was riddled with controversies.

For many years, Tether faced allegations of not maintaining a one-to-one USD chest to back its cryptocurrencies, but the company never conducted any transparent audit. Moreover, due to its ties with Bitfinex, both the companies are facing lawsuits for manipulating Bitcoin prices.

The companies are even fighting the state of New York for an allegedly illegal coverup of Bitfinex losses and a few other charges.

Source: financemagnates.com

Comments

Cryptocurrencies Adding to the Safety and Security in the UK Gambling Industry

These are exciting times for the UK gambling industry. The impact of internet technology is now being felt with online gambling now controlling the industry. The adoption of cutting-edge technology is reasonable for the boom in the industry. From live casinos, mobile apps to artificial intelligence, incredible trends continue shaping the gambling industry. However, it is the rise of cryptocurrency casinos that seeks to redefine UK gambling. Many operators now include crypto coins such as bitcoin, Ethereum and Litecoin as part of their banking methods. Others offer exclusive bitcoin payments and promotions based on digital tokens. This revolutionary trend has a huge impact due to enhanced safety and security on these platforms. Players looking for peace of mind when playing online now opt to use cryptocurrencies. This post looks at how cryptos guarantee the safety and security of players at online casinos. How Cryptocurrency Gambling Works There’s a lot of talk about cryptocurrency,

Will Solana (SOL) Be the Shining Star of the Bull Market?

About 250,000 to 700,000 SOL have been sold daily by FTX for the last three weeks. SOL’s price jumped above $60, as GSOL’s premium also increased. While the price may retrace, it may not take long before SOL hits $70. Despite being a notable casualty of the FTX contagion in 2022, Solana (SOL) has defied all odds in 2023, as the price continues to outshine its peers. In the last 30 days, the value of SOL has increased by 180%, rising as high as $62 on November 11. However, the rising price of SOL is not the only interesting thing the token has shown by the token. For a token that was once described as dead, it has shown tremendous strength. Coin Edition came to this conclusion because of a post by trader Bluntz Capital. The Big Players Are Here According to Bluntz, FTX, after getting the go-ahead to liquidate its assets, has been selling around 250,000 to 700,000 daily for the last three weeks. Regardless of the sales, SOL has failed to nosedive. Rather, the price has chosen the upside

Terra Classic Community Passes Major Constructive Proposal, LUNC And USTC To $1?

The Terra Luna Classic community has passed another key proposal as they prepare for a revival of Terra Luna Classic (LUNC) and repeg USTC stablecoin to $1. The proposal aimed at having a guideline for a pay-per-job approach on the Terra Classic chain as core developer L1TF goes into maintenance mode for Q4. Meanwhile, the community is also collaborating on other fronts to keep LUNC and USTC above key support levels as traders started booking profits amid the latest pullback in the crypto market. Terra Luna Classic Passes Pay Per Job Proposal Proposal 11889 “Pay-per-job and governance-ruled Job List” has passed successfully. The proposal deemed the monthly model of roadmap and payment planning as suboptimal and plans to switch to a pay-per-job model. The proposal has received 91.99% “Yes” votes, with others mostly voting “Abstain”. The community believes it will optimize compensation structure, provide flexibility and transparency, boost community engagement, and risk mitigation. A

Crypto Ethone

Search This Blog