|
August 06, 2019, 07:58:32 AM |
|
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.
|