TechFlow news, according to Bloomberg, Chainalysis, a blockchain analytics firm, has released new research data showing that approximately $50 billion worth of cryptocurrency assets left China over the past year, indicating investors are using crypto to bypass local capital transfer restrictions.
Tether saw more than $18 billion in outflows from East Asia over the past year. As a dollar-pegged stablecoin, Tether accounts for 93% of stablecoin usage in the East Asian region. Chainalysis stated that stablecoins like Tether are particularly useful for capital flight because their peg to the U.S. dollar means users can offload them easily to obtain legitimate stable value without worrying about significant losses. Chainalysis also noted that China imposes limits on citizens' capital outflows, allowing only up to $50,000 equivalent to be transferred abroad annually. The wealthy often circumvent this rule through overseas real estate investments or by creating shell companies. It remains unclear how much of the $50 billion—or the funds moved via Tether—represents actual capital flight. Wan Hui, founder of crypto investment firm Primitive Ventures, said that for many Chinese individuals, Tether has become a substitute for the U.S. dollar. Many Chinese businesses and entrepreneurs, especially those working overseas, now accept Tether.
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