Over $50bn worth of cryptocurrency has flown out of China this year, CNBC reported. It prompts concerns that the Asian giant is transferring out more than is permitted.
China allows a maximum of $50,000 in foreign capital transfer out of the country. However, the wealthier elements in the Chinese society have largely overlooked this rule. The government has since been cracking down on these evasions, in light of China’s economic downturn in the past 12 months, according to Chainalysis, a blockchain forensics firm.
Legislative Protections for Cryptocurrency
Despite restrictions on the capital outflow, China’s cryptocurrency market has seen legislative protections promulgated in its favour. In May 2020, China’s highest legislative house voted to include in its Civil Code rights relating to property and inheritance. Bitcoin and other cryptocurrencies have thus become a complete proprietary thing. This means they may be sold and inherited freely in the same way that land or houses are. At least two Chinese courts of law have confirmed this proprietary nature of cryptocurrency.
President Xi Jinping has been lauded for his reforms in this market. There is commentary that these reforms will herald in an age of China’s dominance in the e-currency sphere. China’s ever-burgeoning economy will thus expand to the most modern form of monetary exchange, in the form of cryptocurrency.
Revolutionary Monetary Reforms
Beijing has endeavored to digitise the Yuan, which may be available for purchase as early as 2023, according to China Briefing. The digitised Yuan is currently under trial in four Chinese cities to confirm its efficacy. It appears though that the Chinese government has made significant progress in this regard. On 12 August 2020, China’s Ministry of Commerce has confirmed an expansion of its digital currency trials.
It is certain that China’s cryptocurrency market is one to be reckoned with, and cryptocurrency enthusiasts should keep a keen eye on this Asian market.