Journalist confirms China is planning to unban Bitcoin and Crypto very soon as capital flow in Hong Kong is an example

Information reaching Kossyderrickent has it that Journalist confirms China is planning to unban Bitcoin and Crypto very soon as capital flow in Hong Kong is an example. (Read More Here).

The journalist wrote: “CHINA IS PLANNING TO UNBAN 

BITCOIN AND CRYPTO VERY SOON. 

CAPITAL FLOW IN HONG KONG IS 

BECOMING AN EXAMPLE FOR MANY

OTHER REGIONS.”

In late September 2021, the People’s Bank of China (PBOC) banned all cryptocurrency transactions. The PBOC cited the role of cryptocurrencies in facilitating financial crime as well as posing a growing risk to China’s financial system owing to their highly speculative nature. However, one other possible reason behind the cryptocurrency ban is an attempt to combat capital flight from China.

According to the Chainalysis Blockchain data platform, more than $50 billion worth of cryptocurrency left East Asian accounts to areas outside the region between 2019 and 2020. As China has an outsized presence in East Asian cryptocurrency exchanges, Chainalysis staff believe that much of this net outflow of cryptocurrency was actually capital flight from China.

Binance is the world’s largest crypto exchange by volume and assets, having processed $9.5 trillion worth of trades in 2021 alone. But it’s not supposed to be allowed to operate in China, which banned cryptocurrency trading in 2021.

Binance founder Changpeng “CZ” Zhao has touted the exchange’s know-your-customer systems, known as KYC, as a billion-dollar effort. Among other functions, they are supposed to stop customers who aren’t supposed to be on the platform, including residents of China.

But customers in China and around the world regularly subvert Binance’s controls to hide their country of residence or origin, messages in Binance’s official Chinese-language chatrooms show.

CNBC obtained, translated and reviewed hundreds of messages from a Discord server and Telegram group, which are controlled and operated by Binance. More than 220,000 users were registered across both groups, which were freely accessible to anyone who registered and joined. Until late March, there were no controls on access, which is how CNBC was able to review messages from 2021 to 2023.

The messages CNBC reviewed come from accounts identified as Binance employees or Binance-trained volunteers known as “Angels.” In these messages, they shared techniques that can be used to evade Binance’s KYC, residency and verification systems.

China places an annual limit of $50,000 for the purchase of foreign currencies as part of its already strict capital controls. As such, the capital flight facilitated by cryptocurrency is especially notable.

Previously, the rich in China got around capital controls by purchasing foreign real estate, creative invoicing for international trade and even coercing their employees to transfer money to foreign bank accounts. With Bitcoin, residents in China have been able to acquire foreign assets more easily, free from the scrutiny of Chinese authorities. Given the decentralized nature of Bitcoin and many other blockchain-based cryptocurrencies, they can be used to circumvent capital controls far more easily than a conventional currency exchange that uses the banking system.