More than $17.5 Billion in Cryptocurrency Moved Out of China in 2020
On January 11, China-based blockchain security firm Peckshield published its “2020 Digital Asset Anti-Money Laundry (AML) Research Report” detailing a variety of crypto trends throughout the year.
As one of their findings, roughly $17.5 billion cryptocurrency-based capital has flown out of the country in 2020. The unregulated capital flows leveraging cryptocurrency over the past three years have amounted to more than 1.5% of China’s $3 trillion foreign exchange reserves.
Total funds outflow via cryptocurrency from China to major foreign exchanges in 2020
Early in 2017, the Chinese government and the People’s Bank of China (PBoC) have banned domestic crypto exchange operations. Despite the ban, these crypto exchanges just simply moved their serves out of China and continued to serve residents in the country via their “offshore” platforms and over-the-counter marketplaces.
The study points out that the number of unregulated capital outflows using cryptocurrency is actually larger than $17.5 billion, as the number is only based on the flight from several major exchanges whose users are mostly Chinese citizens to major foreign exchanges.
Details revealed that last March saw the highest number of bitcoins (over 172,115) moved out of China, and the value of bitcoin ($2.5 billion) flowing out of the country reached its highest level of the year in December when bitcoin price hit a high of the year.
BTC number and amount flowing out of China by month in 2020
Apart from the capital flight using cryptocurrencies, the report also goes through the major crypto scams over the past three years.
As per the report, losses caused by cryptocurrency fraud have been almost $3.2 billion, less than the figure of 2019, while the number of scams is 7 times of the previous year.