They've already banned all crypto exchanges in country,now they are working on the methods how to prevent Chinese citizens to use international exchanges.Only thing working in China regarding cryptocurrency is mining,they allow that just because it make huge profit for them.Money that comes to country is not a problem, but uncontrollable cash outflow through cryptocurrency is unacceptable.
Well, I have to confess I never understood that thing. Could anyone please explain to me in layman terms what this "uncontrollable cash outflow" means in practice? I understand when people buy gold and try to move it across the border because it physically leaves the country. But bitcoin is sort of transcendental in the sense it doesn't recognize borders anyway. So it kinda doesn't need to be moved anywhere since it's already everywhere, Jinping or no Jinping. Where's the catch here?
There are the limits on the currency which can be moved to the foreign country-currency. For example, a company or person could take out 5000 USD worth chinese currency per year. However with cryptocurrency you could bypass this condition/law and move any amount of money to other country. That is buy crypto-currency of desired value, lets say 20000 USD worth bitcoin or alt-crypto is purchased from chinese exchange and transfer that crypto to other person or receiver (receiver could be in any country). There is no control over transfer of crypto. So the term uncontrollable cash outflow.