Over $50 billion worth of cryptocurrency has moved out of China-based wallets to other parts of the world last year, suggesting Chinese investors could be transferring more money than allowed out of the country.
According to CNBC, Chinese citizens can only buy up to $50,000 worth of foreign currency per year at financial institutions, and in the past the restriction was circumvented through foreign investments in real estate and other assets The government has, however, cracked down on these methods.
Blockchain forensics firm Chainalysis published a report detailing that cryptocurrency, particularly stablecoins, could now be filling in the gap, as while not all of the $50 billion moved out of China-based wallets are capital flight, the figure can be seen as an “absolute ceiling for capital flight via cryptocurrency from East Asia to other regions.
Chainalysis’ report reads:
Over the last twelve months, with China’s economy suffering due to trade wars and devaluation of the yuan at different points, we’ve seen over $50 billion worth of cryptocurrency move from China-based addresses to overseas addresses.
The stablecoin mostly being used is said to be Tether’s USDT, which is pegged 1:1 with the U.S. dollar. It would be useful to transfer large amounts of USDT, as being a stablecoin means it won’t be subject to wild price swings some other cryptocurrencies go through.
Some of the activity can, per Chainalysis, be explained by cryptocurrency miners based in China converting newly minted crypto into USDT, and sending the funds into exchanges abroad. Chainalysis said:
In total, over $18 billion worth of Tether has moved from East Asia addresses to those based in other regions over the last 12 months. Again, it’s highly unlikely that all of this is capital flight.
The report also found significant spikes in the movement of USDT, based on certain events. In October, when Chinese President Xi Jinping backed blockchain technology, and amid March’s massive sell-off, capital flight seemingly rose.
The blockchain forensics firm added that some of that movement could have been East Asia-based cryptocurrency traders moving their holdings to exchanges, in order to take advantage of volatile times.
It’s worth noting that China has in the past cracked down on cryptocurrencies. In 2017 the country banned fundraisers via initial coin offerings (ICOs) and cryptocurrency exchanges from operating in the country.
Featured image via Pixabay.
Audio Streaming Mogul Spotify Considering Cryptocurrency Payments
Joining the tech and financial services bigwigs in the payments revolution, Spotify too is going the crypto way. The Swedish audio streaming and music services giant just put up a job offer for an Associate Director, Payments Strategy & Innovation. The desired candidate will play a key role in ‘navigating the company’s payments rudder’ through the cryptocurrency ecosystem.
Spotify Looking To Be A ‘Leading Player In The Cryptocurrency Space’
As per an official job opening that Spotify just posted, the company is looking for an Associate Director for their Payments Strategy & Innovation Team. The said individual would report to the Director of the same team. And will be instrumental in Spotify gaining a considerable foothold wrt integration of cryptocurrency payments. According to the description:
We are now looking for an outstanding Associate Director to join our Payments Strategy & Innovation team. This role will report to the Director, Payments Strategy & Innovation and will play a key part in defining and implementing Spotify’s payments strategy as well as leading Spotify’s activity within the Libra stablecoin project and wider digital asset & cryptocurrency space.
The objective is to address the company’s plan of ‘enabling new monetization opportunities’ for music creators. Also, Spotify wants its platform to become accessible to a larger section of potential users.
Spotify intends to inculcate all the latest fintech trends in their payments strategy, including cryptocurrencies. So that users from all sections of the society can access the music streaming platform.
Crypto Agenda Involves Libra As Well
One of the designated roles of the incoming Associate Payments Strategy Director would be to lead ‘Spotify’s day-to-day engagement with the Libra Association.’ This is due to the ongoing alliance of the company with Facebook’s digital currency project.
Along with this, the company is looking to leverage all the blue-chip aspects of the blockchain and cryptocurrency space. This includes stablecoins and Central Bank Digital Currencies (CBDCs). It is to streamline its transition to the most advanced payment methods available in finance at the moment.
The Associate Payments Strategy Director would be required to fulfill the above roadmap by making use of
Spotify’s global footprint to seek out innovation in the payments domain globally as well as emerging regulatory & market trends that could influence Spotify’s approach to payments.
Through all the above, the company actually intends to elevate its ‘reputation as a market leader in payments’, the website said. And give giant payments players like PayPal a run for their money.
India Reportedly Plans to Tax Crypto Investors As Bitcoin Price and Trading Activities Soar
Barely ten months after the Indian Supreme Court lifted the RBI’s ban on cryptocurrency transactions, fresh reports from yesterday revealed that the country’s tax authority is now keeping a close watch on crypto traders as Bitcoin’s price continues its bullish trend.
Taxing Crypto Gains
According to local media, the Indian Tax Department is already in possession of data belonging to investors who invested in Bitcoin or cryptocurrencies through banking channels before the RBI’s ban in 2018.
This development is coming after data shows a tremendous increase in crypto trading activities in India. Since the crypto ban was lifted earlier this year, retail investors between the ages of 25 and 40 have been spending millions of dollars on crypto trading every day.
Over $25 Million Daily
Two of India’s largest crypto trading platforms, Binance-acquired WazirX and CoinDCX, saw a significant increase in activities over the last six months. According to an earlier report, WazirX recorded a massive 125% increase in user signups in the last two quarters. The exchange also has a daily trading volume of $19-26 million, with more than 85% of the transaction coming from Indian traders.
Some experts believe it will be difficult for the country to tax crypto because there’s no regulation in place for crypto dealings. They feel a regulatory framework will provide the needed clarity to make taxation easier. While India is yet to release its crypto regulation, an earlier report suggests that the country may regulate crypto as commodities.
Declaring Bitcoin Profits As Capital Gains
Although it is unclear how India plans to implement the tax law, sources familiar with the matter claimed that the country’s taxman is already preparing to collect tax on the gains made from Bitcoin. And notice may be sent out to investors if “something goes out of this.”
Experts believe that the tax authorities may classify crypto gains as business income, and investors may have to pay up to 30% tax on profits made from selling cryptocurrencies.
However, some tax experts are advising their clients to declare their Bitcoin earnings as capital gains, which is similar to profits generated from shares.
Fidelity Digital Head Thinks BTC Is Too Volatile To Be Store Of Value
The Fidelity Digital head Tom Jessop believes that Bitcoin is still too volatile to become a store of value but it has the potential to do so in the near future. Jessop says that Fidelity was a frontrunner in providing crypto services to its users but thinks that BTC is “not quite there” as we are reading more in today’s BTC news.
Speaking to Reuters Global Investment Outlook Summit 2020, the Fidelity Digital Head Tom Jessop, says that Bitcoin still hasn’t attained all of the stores of value elements but BTC investors are still optimistic that one day the benchmark cryptocurrency will attain them. Bitcoin is truly still volatile and by any other standard it would likely not achieve the title as a store of value but it has the potential to become one which is one of the main reasons why so many investors are thinking to invest in it.
This argument makes much sense as the primary crypto’s price action was a roller coaster ride recently. In a time span of 8 months, BTC made 400% gains but it also had lost a lot of value by 90% after the 2017 boom. Still, the asset experienced a strong surge in demand because of its inflation-resistant nature. With the governments and central banks enter full stimulus mode, some observers consider BTC as a useful safeguard against inflation. Its supply is capped at 21 million and these people believe its scarcity will give it innate value.
Tom Jessop has many reservations against Bitcoin’s store of value narrative but Fidelity Investments touted the asset in many ways than one. Fidelity released the BTC investment Thesis back in October and the document presented many arguments why the trillion-dollar BTC market is not out of the question. The Boston-based company observed that BTC’s strength lies in the low correlation with any other asset in the investment portfolio.
This according to the company, presents a favorable scenario for the investors since BTC becomes an alternative asset for them. This asset allows holders to protect their wealth by exposing themselves to a commodity where the risk doesn’t depend on what will happen to other markets. Also, the fund management company partnered with Singapore’s Stack Funds in order to enable wealthy Asian investors to securely and freely buy Bitcoin. According to the recent reports, Stack Funds will make Fidelity’s secure custody services available to the clients based in Asia, and all assets under management will be audited.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Spotify Thinking of Accepting Bitcoin
Litecoin, Cosmos, Dogecoin Price Analysis: 03 December
Greenheart Punt World Debut on DigiFinex
IlCOIN Launches Blockchain-Powered VR First on Steam
Mining City: A Blueprint for Success?
Yearn Finance Continues Growing with Latest DeFi Acquisitions
Wall Street Giant Guggenheim Fund Seeks SEC Approval to Buy Bitcoin Worth up to $500 Million
Bitcoin, Ether, and XRP Weekly Market Update November 30, 2020
Golff Vault 2.0’s New Launch – One-Stop Services Encrypted Bank
BREAKING: Bitcoin Miners in China’s Yunnan Province Cut off from Electricity Supply
Facebook Libra changes name to Diem
J.P. Morgan Analysts Foreshadow Further Bitcoin Declines
Nicholas Baumer Appointed Chief Marketing Officer by Tickmill
TRON’s BitTorrent Partnered with Huawei
Visa CEO Alfred Kelly: ‘We Are Very Interested in Cryptocurrencies’
Ripple Plans To Cash Out 33% Of Its MoneyGram Stake With A Significant Profit
SEC Letter Reveals China’s Crypto Ambitions Threaten US
After Lightning-Paced Tier-1 Sellout, ClinTex’s CTi Token Lists on KuCoin Today
5 Reasons Why Bitcoin Just Hit an All-Time High Price
Bitcoin Cash Price Prediction: BCH/USD Stays Above $280; the Bulls May Regain the Ground
FCA Exposes 4TFX as Crackdown on Clone Scams Continues
Pizza Hut to accept Bitcoin for pies in Venezuela
Ethereum Classic Hashrate Rises Following Successful Thanos Hardfork
$100 Million in Bitcoin From Bitfinex Hack Has Moved
What Biden’s Pick for Treasury Secretary Has Said About Bitcoin and Blockchain
Nearly $100 million in bitcoin tied to 2016 Bitfinex hack has been moved
Bitcoin (BTC) Gives Highest Ever Monthly Closing At $19,700 in November 2020
Crypto Market Cap Gained $30 Billion While BTC Eyes $19K
Historic BTC Charts Suggest 2020 Bull Run Is Just Starting
SEC approval: firm seeks to invest $500 million in Bitcoins
South Korea To Postpone Previously Planned Crypto Income Tax
Kraken Daily Market Report for November 29 2020
Bitcoin acting CRAZY, Libra coming soon? | This Week in Crypto – Nov 30, 2020
Bitcoin and Crypto Worth $4 Billion Seized From PlusToken Ponzi Group
Russian government to recognize bitcoin as property.
Coronavirus-Induced Poverty Will Bring More Bitcoin Crime in 2021: Kaspersky Report
Price Analysis: AAVE bulls target $100
XRP up 170% in a Month Ahead of Flare Token Airdrop: What You Need to Know
Bitcoin Decimates Bears With Quick Recovery Above $19,800
Blockchain3 months ago
Bitcoin price volatility expected as 47% of BTC options expire next Friday
Blockchain3 months ago
Blockchain Bites: Is DeFi an Inside Deal?
Blockchain3 months ago
Market Wrap: Bitcoin’s Powell-Induced Price Swing; Ethereum Still High on Gas
Blockchain3 months ago
Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto
Blockchain3 months ago
Ethereum: Is the HODLing in yet?
Blockchain3 months ago
Hackers Have Been Trying To Crack Bitcoin Wallet Worth $750 Million But Here’s The Catch
Blockchain3 months ago
YFI Founder Puts Himself Forward for Uniswap (UNI) Delegation Duties
Blockchain4 months ago
Wealthfront Lures Millenials With Crypto Memes and Tactics