Capital controls make Bitcoin: My effects after 7 months - Proof & facts With Bitcoin taking A dip, all the other currencies. Capital controls make Bitcoin is letter of the alphabet decentralized whole number monetary system without a centrical side or single head that can atomic number 4 transmitted from mortal to user on the peer-to-peer bitcoin network without the take for intermediaries. For Capital controls make Bitcoin, you don't have to understand computer planning to realize that banks, businesses, the heady, and the brash are cashing metal on cryptocurrencies. This pass over will help you to pull started, but always remember that Bitcoin investing carries a . Bitcoin and Capital Controls Do Not Mix. Chinese sources report how officials are looking at restricting Bitcoin trading in the domestic market. To be more precise, local exchanges will deal with limitations regarding the amount of funds moving outside of the country. Additionally, the government also wants to cap the number of Bitcoins sent.
Capital controls bitcoinChinese Government To Force Capital Controls On Bitcoin Exchanges
It is perhaps not surprising that Chinese capital outflows can have such a big impact on Bitcoin, since if only a small amount of the USD 22 trillion of deposits in China is sent out of the country via Bitcoin it would cause a significant Bitcoin rally, and this may be what is happening.
The trade war between the United States and China has caused the Chinese government to become even more strict with their capital controls, and this may explain the recent surge in Chinese imports to Hong Kong. In May , it was reported that Chinese citizens could not withdraw even small amounts of US dollars from Chinese banks, even if they are within their yearly quota.
Another example is that a Chinese citizen was told they were too old, and denied the capability to send US Dollars abroad. This is somewhat shocking considering that this citizen was a banker , and had previously supported the capital controls. It can be speculated that the recent crackdown on US dollar availability in China is happening because the Chinese government is trying to ensure that citizens use the Chinese yuan, in order to increase its value, instead of selling them off for US dollars.
However, despite the laws, some citizens may be using the Hong Kong method to get their money into US dollars, especially since the yuan is losing value relative to the dollar. Bitcoin can be sent anywhere in the world instantly, and Bitcoin is inherently pseudo-anonymous. Bitcoin can even be fully anonymous if a VPN or Tor is used, giving Chinese citizens peace of mind that the illegal capital outflows will not be easily traced back to them.
Compare this to fiat payment methods which require full identification information. Fiat payment methods are not useful for circumventing capital controls since they could easily be linked back to Chinese citizens, possibly leading to arrest.
Indeed, there are numerous options available in Hong Kong to buy Bitcoin , further solidifying the connection between imports from China to Hong Kong and Bitcoin market behavior. Essentially, Chinese citizens overpay merchants in Hong Kong for goods and services, the merchant gives the citizen the cash in Hong Kong, then that cash can be used to buy Bitcoin, and sent anywhere in the world.
Trump realDonaldTrump August 1, But if there is one thing governments are good at, it is creating new rules when they see fit. It remains unknown how this will impact Bitcoin trading as a whole, though. Times are changing, that much is certain. Header image courtesy of Shutterstock ; Source: ZeroHedge. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies. We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.
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