Chinese Merchants Sell USDT Worth Tens of Millions of Dollars in Russia

Chinese Merchants Sell USDT Worth Tens of Millions of Dollars in Russia

Chinese businessmen quietly spent dedollarization: they actively use the steylcoinka USDT through Russian exchangers instead of international bank transfers.

According to the director of one of the Moscow OTC sites, on average they sell $ 3 million worth of cryptocurrencies per day, and most of this amount is then sent to China. Approximately 80% of transactions fall on USDT tokens, and only about 20% on Bitcoin and other cryptocurrencies.

According to some Moscow over-the-counter traders, daily Chinese importers buy USDT for $ 10-30 million from their ruble revenues.

“We are often approached by representatives of Chinese business. They accumulate in Moscow a large amount of cash that they want to send to China. For these purposes they use USDT. Usually, everything happens as follows: the client turns to us with the intention to buy USDT, transfers cash and the address of the wallet. After that, we register the price on the stock exchanges and the seller sends USDT to the specified wallet, ”said the head of OTC trading on the Huobi Russia platform, Maya Shahnazarova.

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According to another OTC dealer, until 2018, Chinese importers mainly used Bitcoin. While the price was rising, it was even on hand, since they could additionally increase their revenue, but after the fall in the cost of Bitcoin, such transfers became too risky and the majority began to use the USDT. It is much more convenient and safer, since merchants do not have to think about how much steblecoin will cost tomorrow. In addition, Tether has no liquidity issues. However, many over-the-counter traders note the fact that the average daily trading volume of the USDT is several times higher than the capitalization of the instrument. For example, on July 29, the daily turnover in USDT amounted to $ 17.5 billion with a capitalization of $ 4 billion. According to representatives of the cryptocurrency industry, this only indicates that some tokens are used to convert assets several times a day.

As is known, cryptocurrency trading is prohibited in China, however, local traders still withdraw assets to USDT through OTC platforms that serve, for example, OKEx and Huobi.

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Representatives of the Moscow cryptocurrency business note that large amounts of USDT are transferred daily to China, where they are then converted into yuan, without using bank transfers with conversion via fiat currencies.

Another factor why digital assets are so popular among Chinese importers and businessmen is that the Chinese authorities have established strict control over the turnover of capital and limited the amount of $ 50,000 per year available for buying or selling foreign currency per person.

In April last year, Director of the Financial Monitoring and Currency Control Department of the Bank of Russia Yury Polupanov said that the monthly retail shadow trade turnover is about $ 9.5 billion a month.

“We practically do not see transfers to bank accounts. Most of the revenue is transferred to a cryptocurrency, which is not taken into account anywhere and then completely freely transferred to other countries, where it is already converted into the local currency, ”said Polupanov.

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Despite all the attempts of the Moscow law enforcement officers to neutralize such schemes, tens of millions of dollars are transferred abroad via cryptocurrency every day without bank fees.

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