Foreign media: Bitcoin transactions hit a new high, 90% of transactions come from China

According to a report on December 20, foreign media reported that global transactions of the Internet virtual currency "Bitcoin" are expanding. In terms of yen, the transaction volume in November exceeded 15 trillion yen (about 887.97 billion yuan), an increase of 50% from the previous month, setting a record high. The driving force is China, which accounts for 90% of the total transaction volume. Transactions to avoid the risk of the appreciation of the US dollar and the depreciation of the RMB after the US presidential election have expanded. In addition, the trend of taking advantage of trading restrictions and transferring assets overseas with the help of virtual currencies is also expanding.

According to a report by the Nikkei website on December 20, statistics from the research agency Bitcoinity show that the global transaction volume in November reached 174.71 million bitcoins. Based on the exchange rate on December 16, it has exceeded 15 trillion yen (about 890.3 billion yuan). The previous highest transaction volume was 148.56 million bitcoins in March.

Bitcoin transactions started in earnest after 2013. Japan’s share of transactions is believed to be several percentage points, but insurance products to protect against theft and disappearance have emerged, and the use of Bitcoin transactions has begun to expand.

The report said that the rapid increase in transactions in November was due to the US presidential election and the depreciation of the RMB. In the US and Europe, transactions hoping to avoid the risk of chaotic exchange rates after the election increased. In addition, funds flowed into the Bitcoin market at an accelerated pace. The current price of Bitcoin has reached around $780, up about 10% from before the US presidential election.

China has three major bitcoin exchanges, accounting for 90% of global transactions. Since the devaluation of the renminbi in August 2015, the transaction volume has surged. The wariness of the devaluation of the renminbi has prompted funds to flow into bitcoin. It is said that by using renminbi to buy bitcoin and then exchanging it for foreign currencies such as US dollars, it is possible to evade foreign exchange restrictions. Huobi, a bitcoin exchange, said that "in November, there was a surge in transactions to transfer assets overseas."

Huobi has capped remittances at 200 bitcoins per day, equivalent to more than $150,000, the report said. China limits foreign exchange transactions by individuals to $50,000 per year, but bitcoin is not subject to restrictions.

China’s monetary authorities are reportedly stepping up their vigilance and appear to be exploring tighter regulations, such as restricting the exchange of bitcoin for yuan and dollars.