Amidst the rise in capital outflows from China, Chinese investors have dominated global trading and production of Bitcoin, a peer-to-peer electronic payment system that operates independent of a central authority, since late 2013. Some of this activity is speculation-driven, and some could serve to evade capital controls. While the cross-border flows resulting from China’s activity in cryptocurrency markets appear very modest in relation to other channels, regulations and capital controls do not appear to be significantly restricting trading activity.
