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Vandana Malik
Aug 21, 2020

Chainalysis Reports Crypto Might Play Key Role in Capital Flight

Chainalysis
Chainalysis, a blockchain analytics firm, recently revealed a report, talking about the key role of cryptocurrencies in capital flight. According to the report, cryptocurrency and especially Tether (USDT) might play a vital role in the capital flight from China. 

Chainalysis report claims that in East Asia, 44% of crypto transactions are conducted within the region only. It also claims that in the past year, East Asia’s share of global crypto activity has declined. Crypto worth $50 billion has left China. During the time, when Beijing imposed a ban on direct conversions, USD backed Tether played a significant role. Traders in the Chinese market have used Tether as a major stand-in for fiat.

Chainalysis states the reason why holdings are moved overseas

Chainalysis reported that in the past year, Tether worth $8 billion has been transferred to foreign addresses originating from the East Asian market. A lot of analysts have specified that the US-China trade war must be playing a major role in this fund movement. Beijing has also restricted its citizens from moving funds equivalent to or more than $50,000 overseas. 

The government has also cracked down on the routes for offshoring capital, and because of this, cryptocurrency has become the only alternative. 

Dovey Wan, the founding partner of Primitive Ventures, has said that President Xi has only talked about blockchain and not any crypto. This directly indicates that there will not be any state-sanctioned crypto other than Digital Yuan.

Max Keiser, a famous American broadcaster, has said that a lot of geopolitical tensions are leading capital flight out of Asia. However, his primary focus was towards Bitcoin, and he did not talk about the Tether or any other crypto.

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    Chainalysis Reports Crypto Might Play Key Role in Capital Flight
    Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.

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