The blockchain data platform Chiainalysis released a report on Wednesday indicating that China remains one of the largest cryptocurrency markets in the world.
According to the report, addresses that are estimated to be controlled by users in China in the first six months of this year have received over $ 150 million worth of crypto, about a third compared to the US, which puts China second behind the US Place China remains one of the largest markets and is active in cryptocurrency around the world.
Chinese crackdown on Bitcoin mining
Over 90% of Bitcoin mining capacity was lost as massive Bitcoin mining sites closed in June.
On-chain data reflects that the weekly volume of bitcoin mining pools has dropped from around 10,000 to below 5000 BTC since mid-May, right after China’s crackdown on domestic bitcoin mining activities. The last six months’ numbers also show that most people living in China have been hit by Chinese authorities, including Ant pool, Poolin, BTC.top and F2Pool.
The government views ultra-rich people like the early Bitcoin miners and people who advocate freedom or self-sovereignty as “dissidents of natural inclination.” The report, citing the expert, states that preventing capital flight and stopping illegal monetary service companies are the main goals of the Chinese government in order to maintain social stability and unity.
The digital yuan is unlikely to have any impact on dollar status in the short term
Meanwhile, the promotion of the digital yuan, a type of central bank digital currency (CBDC) in China, is bringing currency reform to fiat money worldwide and intensifying diplomatic tensions, especially Sino-US relations. The report believes China intends to set various goals, including carrying out “data-driven monetary policy improvements and increased surveillance of citizens’ financial activities “. seems to get rid of US regime sanctions in short term.
Center for a New American Security Adjunct Senior Fellow Yaya Fanusie believes the digital yuan will not pose a threat to the US dollar in the short term. Still, digital yuan and CBDCs could shake the dollar’s dominant position in the financial system in the long term. “They will try to find agreements with other countries in which they will allow the exchange of CBDC to CBDC. Think of it as an atomic swap of CBDCs …. these transactions would not rely on the SWIFT system. If they become the norm, people outside the US will have to hold less US dollars, ”Fanusie added.
Concerns crypto crime in China
In June, more than 1,100 suspects were arrested in connection with the commission of crypto crimes in China. The report concerns crypto-crime committed in China. Chinese addresses were sent in cryptocurrency valued at over $ 2.2 billion to addresses associated with illegal activities such as fraud and darknet market operations, and received over $ 2.0 billion.
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