30M USDT is sent from Russia to China every day to avoid capital controls

[leader2704]

China is famous for strict capital control. And to avoid those rules, Chinese traders in Russia bought a large amount of stablecoin Tether and sent 30 million USDT per day back to China.

They had bought Bitcoin the same way, however, after the crypto winter happened last year, they switched to USDT, Coindesk said.

Moscow traders say that although there are problems with whether Tether is fully supported by USD, no one care about that problem in this market.

An example of an OTC trading company in Moscow, including an employee (unnamed), says Chinese businessmen come to their office every day with tons of cash to send home by cryptocurrency. The amount of cryptocurrency sold daily is worth $3 million.

Strangely, they use Tether to do that. Previously, preferred assets were Bitcoin, but after 2018 full of "storms", Chinese traders started using USDT to send a large sum of money to their homeland to avoid controlling capital for Chinese citizen by government.

Tether is often used to move money between exchanges by traders, and in the case of Chinese entrepreneurs, money transfer is a real and perfect use-case for USDT. As a rule, they buy from 10 million USDT to 30 million USDT per day.

In an interview, the head of the OTC trading department at Huobi Russia, Maya Shakhnazarova, confirmed this.

"They accumulate a lot of cash in Moscow and need Tether to transfer them to China."

In China, the entrepreneurs sell Tether to get the RMB in OTC markets which are registered with officially regulated exchanges, such as Huobi and OKEx.

China's capital control laws limit anyone who buys or sells no more than $50,000 a year. And Tether helps avoid these rules.

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[7788bitcoin]

In China, the entrepreneurs sell Tether to get the RMB in OTC markets which are registered with officially regulated exchanges, such as Huobi and OKEx.
China's capital control laws limit anyone who buys or sells no more than $50,000 a year. And Tether helps avoid these rules.

The crypto market is meant to over come these restrictions being imposed by the government and to have a open trade world wide and it is good to see news like that where people are taking advantage of the market and overcoming these restrictions so that they will have a free trade and commerce, people opt to trade with a stable currency is not surprising either but bitcoin is created to have an open trade world wide and hopefully everyone will use them for what it is intended for in the near future.

[omone1]

This is the purpose of the birth of Cryptocurrency to beat the regulations limiting one's ability to use their money. I have a limit while sending the USD from my country to another country using the traditional bank. But cryptocurrency has removed that limit and barrier. Serious minded young business generation will have to bypass the banks.

[adeandro]

Decentralization, that's what I can say. I don't see anything wrong with that, really. If it's hard to do with cash, then USDT is perfect. At least until the Chinese government paid attention to it.

[cudora]

Then let them do it, who cares, but they should do it public. Image what would happen to the crypto industry if the whole word will know that two biggest countries are moving so much money with help of crypto currencies.

[tsaroz]

Crypto helps us to create a free world economy. The way it should have been. The complex monetarial system has many flaws and is an instrument to keep poor poorer and rich richer. Fiat currency is a tool of oppression and citizens by their governments. When were are free enough in our financial activity, our thoughts and speech, blockchain would help topple any oppressive government and install a citizen friendly regime.