Copy link
Increase text size
Decrease text size
Link copied

Crypto reportedly used by some Hong Kong residents to move money to Canada

Canada's Fintrac revealed that capital outflows from Hongkong to Canada rose to $34 billion in 2020.

Hong Kong Island Skyline / Image by: Wikimedia Commons

Mon, 05 Apr 2021, 06:38 am UTC

Capital outflows from Hong Kong to Canada soared to new heights in the past year. However, the record-breaking amount does not yet include transfers sent by residents who used crypto to move their money abroad due to the security law turmoil in the Asian financial hub.

Data from Canada’s financial intelligence agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), capital inflow from Hong Kong reached more than $34 billion in the past year, according to Bitcoin.com. The amount is the highest volume ever record since FITRAC started recording such data in 2012.

The record-high capital outflows from Hong Kong “are the first evidence of a significant flight of capital overseas from the Asian financial hub following the security turmoil,” according to GlobalNews.ca. It came a year after Hong Kong authorities froze accounts of some people that were linked to pro-democracy protests, which triggered safety concerns among the city’s residents.

Hong Kong’s government denied any significant capital outflows since the unrest began in 2019. However, Canadian lender Equitable Bank said that it noted a rise in deposits from Hong Kong since the new security law took effect in June 2020.

“Average balances in these accounts were up 30 per cent between June and mid-March, versus a four per cent rise in accounts with non-Hong Kong phone numbers,” a Canadian bank executive was quoted in Fintrac’s report. The bank official noted that there has been “a remarkable increase in balances in existing accounts linked to Hong Kong phone numbers.”

For comparison, the $34 billion capital flight from Hong Kong to Canada last year is 46 percent higher than the 2016 figure. It is also 10 percent higher than 2019.

But the Canadian agency believes that the actual figure could be higher. Some Hong Kong residents have likely sent their funds using cryptos or sent them in amounts below the threshold that would trigger reporting requirements.

“The Fintrac data captures only a fraction of total legal inflows into the Canadian economy because many transactions are not included, such as transfers via cryptocurrencies, between financial institutions, or under $8,000,” Fintrac spokesman Darren Gibb said.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (btc) $59,582.00 (-1.63%)
  • Ethereum (eth) $2,142.09 (-0.72%)
  • Binance Coin (bnb) $468.83 (-2.28%)
  • XRP (xrp) $1.39 (+21.06%)
  • Tether (usdt) $0.999950 (+0.04%)
  • Bitcoin (btc) $59,582.00 (-1.63%)
Apr 10, 2021 (Saturday)
05:05
BTC Drops by 1.01% Within 5 Mins, Marking 60,780.09 USDT
04:20
BTC Surges by 1.02% Within 5 Mins, Marking 60,417.4 USDT
Apr 9, 2021 (Friday)
10:38
OKEx Lists GAL And TRA For Spot Trading
10:32
F2Pool To Stop Mining Services For ZEL
10:29
BTC Trading Above 58500 USDT
10:05
The9 Ltd., a Shanghai-based online game operator, signed a legally binding MoU on the purchase of Bitcoin mining machines.
10:00
BNB Tops List Of Crypto Net Inflow With $32.06 Mln In Past 18 Hours
09:55
Binance Has Completed Pundi X (NPXS) Token Migration & Redenomination Plan
09:42
Prepare For 'Uncertain Future Of Money' – US Intelligence Center
09:36
Huobi Futures To Add Trading Pairs For Cross Margin Mode Of USDT-Margined Swaps
08:16
Geth Releases v1.10.2
07:47
WWE Joins NFT Bandwagon, Announces Undertaker NFT
07:16
BuyUcoin Pilots Roxe Payment Node In India
06:51
NFT Tracking Metaverse Index (MVI) Launched By Index Coop
06:49
Canada's Leading Mortgage Brokerage Now Accepts Bitcoin, Ethereum, XRP, And Bitcoin Cash
06:32
Ethereum Hashrate Breaks 9.5 T/s
06:29
ENFTEE Opens Premium NFT Market S
06:28
Signal Under Fire Over MobileCoin Partnership
06:27
GBTC Holder Says Not Enough Being Done To Eliminate Discount On Shares — Proposes An Alternative Solution
06:25
Ripple’s Partnership With Novatti Goes Live
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft