Here we go again. China trying to dissuade bitcoin purchases overseas as capital flight accelerates. At least that's what I think is going on.
In case you're confused: yes, crypto trading and mining has been banned in China since 2021.
But, battered by a slumping stock market, Reuters reports that more and more Chinese investors are using creative ways to own bitcoin and other crypto assets that they believe are safer than investing in crumbling stock and property markets at home.
China's economic downturn "has made investment on the mainland risky, uncertain and disappointing, so people are looking to allocate assets offshore", said a senior executive of a Hong Kong-based cryptocurrency exchange, who declined to be identified due to sensitivity of the topic.