The rise of bitcoin in China

Most transactions with bitcoins are made in China, so any rise in demand for the virtual currency directly affects its total value. For this reason, the Chinese authorities are considering different regulatory policies, which may explain their rise in the country.

Among these policies we can find from restricting the domestic exchanges of bitcoins, to moving the cryptocurrency to platforms located outside the country, passing through the imposition of quotas on the amount of coins that can be sent abroad.

Currently there is a limit of $ 50,000 per year that Chinese citizens can send outside the borders of the Asian country that is "reset" every January 1. The next "restart" of this limit could increase the pressure to remove capital from the country due to the collapse of the yuan, because possibly a large part of that capital comes out in the form of bitcoins.

From the Chinese government know that this can happen, hence that control is established to avoid massive exodus of money. In addition, the relationship between the devaluation of the yuan and the rise of bitcoin confirms that, indeed, the cryptocurrency has been used to bypass the annual limit mentioned above.