Amid trade wars, wealthy Chinese are seeking ways to circumvent capital flight restrictions
Over $50 billion in cryptocurrency flowed out of China over the past 12 months amid the trade wars, according to a new study cited by a Bitcoin.com report.
East Asia is the world’s largest cryptocurrency market, accounting for about 31% of all crypto transactions in the last 12 months.
In an excerpt from its upcoming 2020 Geography of Cryptocurrency report, Chainalysis explained that more cryptocurrency was sent from East Asia than other regions to foreign addresses.
“Over $50 billion traveled from East Asia addresses to addresses in other regions, compared to just over $38 billion for Western Europe, the region next in terms of value sent out of the region,” the firm reported.
Most of the cryptocurrency outflow was from China, Chainalysis said, noting that Beijing only allows citizens to move the equivalent of $50,000 out of the country each year. However, wealthy Chinese have found some ways to circumvent the restrictions, such as via real estate and shell companies, but the authorities have been cracking down on these methods.