Billions Moved Out of China in Bitcoin
Close to $20 billion has been moved out of China through bitcoin according to a new report by the China based blockchain analytics firm Peckshield.
“In 2020, the total capital outflow from Chinese exchanges to foreign exchanges reached $17.5 billion, up from $11.4 billion in 2019, with this sum exceeding 1.5% of China’s three trillion foreign reserves,” the company said.
They argue the actual sum is likely higher because they track a limited number of exchanges used primarily by Chinese citizens.
The exchanges they track, according to a rough translation, are Token [?], OKEx, Bitfinex, Gate.io, ZB, Kucoin, Bibox, Binance, Bitstamp, Bittrex, Kraken, as well as more mainstream exchanges like Coincheck [?], Coinbase, Poloniex, Bitflyer and Upbit.
“The number of bitcoins that flowed from domestic to foreign countries was highest in March this year, reaching 172,115.39 bitcoin,” they say, adding:
“On December 12 2020, the value of Bitcoin flowing from domestic to foreign countries reached its highest dollar value in the whole year, exceeding $2.5 billion.”
China has engaged in a harsh crackdown of any method that can be used for capital flights, but CNY has been appreciating considerably against the dollar, so they may have loosened up.
In addition bitcoin’s price rise has clearly attracted much attention in China where some 65% of all bitcoin miners are based.
This report thus shows they’re still able to engage with the bitcoin market, and they’re doing so to the tune of billions.
They don’t quite detail their methodology however in regards to how precisely they established these are Chinese bitcoins, nor can a distinction easily be made between these being potentially miners’ bitcoin rather than belonging to the general public, although on December 12th bitcoin’s price somewhat rose.
Nonetheless their transfer out of the country suggests there’s a significant bitcoin pipeline moving billions a month in bitcoin, showing the Chinese government has not been able to stop the crypto despite its best efforts.
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