Aug 21, · Over $50 billion of cryptocurrency moved from China-based digital wallets to other parts of the world in the last year, according to a report by Chainalysis. Chinese citizens are only allowed to. As of this month, November of , there have been some false rumors of a lifted ban stirring through the online space. Several sources repeated this rumor without anyone fact-checking. One rumor was that cryptocurrencies (or Bitcoin) had been legally accepted as a payment method by the Shenzhen Court of Arbitration. Hell no, it did not. Throughout the past 24 hours, several publications and public figures have misreported that China has put an end to its blanket ban on bitcoin and the cryptocurrency exchange market.. On Nov. 9, one cryptocurrency-focused publication released a story entitled “China Lifts Bitcoin Ban; Individuals and Businesses Can Now Own Cryptocurrencies Legally.”.
China bitcoin ban 2018No, China Has Not Legalized Nor Put an End to Bitcoin Ban; Inaccurate Reports
Tether claims to be pegged to the U. Stablecoins are useful for transferring large amounts of cryptocurrency because, in theory, the value of the cryptocurrency a person is moving should not see wild swings. Again, it's highly unlikely that all of this is capital flight," Chainalysis said in its report.
Part of this activity can be explained by China-based miners converting their newly-minted coins into Tether and sending them to exchanges abroad, Chainalysis said. Miners are people with specialized computers solving complex math problems to mint new cryptocurrency. When they solve this complex problem, miners are rewarded in cryptocurrency. But the report also found significant spikes in Tether movement on certain news events. Firstly, in October, Chinese President Xi Jinping threw his backing behind blockchain , the technology that underpins many digital coins.
Secondly, after a massive sell-off in mid-March , the price of bitcoin began to recover. It's possible that the economic tumult may have prompted some capital flight from China, though much of the Tether movement could have been East Asia-based cryptocurrency traders moving their holdings to international exchanges in order to trade at a time when cryptocurrency price volatility was high," Chainalysis said.
Tether itself has been mired in controversy. Both companies have denied wrongdoing. China has previously taken a hard stance on cryptocurrencies. In , Beijing banned fundraising via cryptocurrencies known as initial coin offerings or ICOs and local exchanges. However, Xi has backed the underlying technology known as blockchain. The company currently employs around people in Shanghai.
Lee also hinted the company may move some operations out of China, saying "come back in a few months or a few weeks" when asked. Insider logo The word "Insider". Close icon Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification. World globe An icon of the world globe, indicating different international options.
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