正文
The Supervision of Foreign Exchanges
According to Article 2 of the “Implementation Rules for the Administration of Individual Foreign Exchanges” promulgated in 2007, “the annual total amount of foreign exchange settlement and domestic purchase of foreign exchange is administered. The total annual amount is equivalent to 50,000 US dollars per person per year. The SAFE may, in the international balance of payments situation, the total amount of the year is adjusted. That is to say, the amount of US dollars remitted per person per year must not exceed 50,000 yuan.
Besides, according to Article 1 of the “Notice of the State Administration of Foreign Exchange on Regulating the Large-Scale Cash Withdrawal of Bank Cards”, which came into effect on January 1, 2018, "if an individual holds a domestic bank card to withdraw cash overseas, the bank card (including the supplementary card) in his name must not exceed the equivalent of 100,000 yuan per natural year. If the annual amount exceeds the annual quota, the domestic bank card will be suspended for cash withdrawal outside the country this year and the following year.
In order to avoid this regulation, Chinese investors with capital outbound needs have made every move, including using underground money houses, carrying large amounts of cash to cross the border, and sending money to family and friends, that is, using multiple accounts of “ant moving”. However, the above methods are not compliant and the risks are high. In the judicial practice, the underground money houses are convicted of illegal business, money laundering, cover-up, concealing criminal proceeds, etc.; carrying cash transit clearly violates the provisions of the cash quota, and the possibility of being detected at the time of customs clearance is extremely high; for the application of the "ant moving" type of small batches of people to move funds out of the way is prohibited by the SAFE.
In addition, The "Notice on Further Improving the Management of Personal Settlement and Sale of Foreign Exchange" provides that "individuals may not arbitrarily evade the management of personal settlement of foreign exchange and the annual total amount of foreign exchange purchases by domestic individuals.
Therefore, Bitcoin has won the favor of capital outbound demanders with its security, anonymity, large amount and real-time arrivals before the Announcement has been introduced.
Bitcoin Exchange Practice
The process of using Bitcoin to exchange foreign exchange is very simple. You only need to buy Bitcoin in RMB and then sell it in US dollars abroad to complete the process of currency conversion. It is with this point that many foreign startups have begun to play a role in the small exchange business. However, based on China's foreign exchange control situation, Bitcoin has a huge risk as a means of cross-border exchange, which is why the circle's business has not been opened to China.
