China to Cap Amount of Money to be Withdrawn Overseas Annually
Under the new policy, up to $15,000 may be withdrawn a year from Chinese bank accounts whilst overseas in response to the accelerated outflow of about $40 trillion since the introduction of Bitcoin.
The cap includes all accounts and ATM cards belonging to an individual. Currently, residents are curbing the $15,000 limit by having either multiple cards to an account or multiple accounts with various banks.
The punishment an individual will face if found guilty of violating the new policy will be that they will be barred from taking cash out overseas from Chinese banks for 2 years. The new policy and strict punishment hope to deter future “money laundering, terrorism financing and tax evasion”.
A regulator commented that the $15,000 cap should be sufficient enough for Chinese overseas as the average cash withdrawal totaled to about 1/3 of the new restriction. However, Chinese politicians and royalty will be exempt from these rules through loopholes that are the use of Bitcoin.
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