Report: Chinese Regulators Exploring Bitcoin Connection to Capital Flight

Chinese regulators are reportedly looking into the use of bitcoin to avoid capital controls.

AccessTimeIconJan 6, 2017 at 6:05 p.m. UTC
Updated Sep 11, 2021 at 12:58 p.m. UTC
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Though details are currently scarce, Chinese regulators are reportedly looking into the use of bitcoin to avoid capital controls.

According to Tencent Finance, the State Administration of Foreign Exchange (SAFE) is exploring how bitcoin can be used to circumvent capital flight. The news website cited unnamed sources close to regulators, and Tencent’s report was later cited by Bloomberg.

The report emerges in the wake of statements from China's central bank, which said today that it had met with domestic bitcoin exchanges this week, warning them about adhering to state regulations. It also comes as Chinese officials weigh instituting additional capital controls on top of existing constraints amid an outflow of funds from the country, as reported last month by the South China Morning Post.

BTCC, one of the exchanges that met with central bank officials, later released a statement confirming their communication with the People’s Bank of China.

The State Administration of Foreign Exchange did not immediately respond to an emailed request for comment.

CoinDesk will continue monitoring this developing story.

Image via Shutterstock

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