China Restricts Gold Importation, Increasing Bitcoin Demand

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Over the past few months, the Chinese central bank and government have imposed heavy financial regulations for capital controls, cracking down on Wealth Management Products (WMPs), foreign investment and the transfer of money.

The latest strategy implemented to prevent the devaluation of yuan is the restriction of the importation of gold.

China has a large over-the-counter market for Bitcoin, primarily due to the large population of Bitcoin miners. Since the direct trading of Bitcoin between two parties in the absence of a moderator or a third party institution is exempted from money transmission regulations, Bitcoin could be seen as a viable method of investment and wealth protection for most companies and investors in China.

 

Source: China Restricts Gold Importation, Increasing Bitcoin Demand

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