The market for initial coin offerings (ICOs) reached a new peak in the first quarter, although signs of a slowdown have begun to emerge amid fears of upcoming regulation and a general
outflow of capital from the cryptocurrency space.
The market for initial coin offerings (ICOs) reached a new peak in the first quarter, although signs of a slowdown have begun to emerge amid fears of upcoming regulation and a
general outflow of capital from the cryptocurrency space.
However, the Chinese government is continuing to tighten restrictions
on outflows of capital that could hamper new investment.
Cryptocurrencies have provided the potential for
unregulated outflows of capital from the mainland, so it seems that the cryptocurrency facilitators in China may face a different fate than their internet counterparts.
While Brazil and Indonesia have both been able to offset some of the effects of Bernanke's comments by raising interest rates (both countries increased their rates by 50 basis points in the past week), India can not afford to do the same, and has seen
an outflow of capital as a result.
«In most cases they're coming from much more expensive markets, and in some cases are just trying to get money out of the country to a safe haven,» he said, adding that China's stepped - up restrictions on
the outflow of capital has probably had a bigger impact.
Indications that the US Federal Reserve is inclined to take a more aggressive stance in raising interest rates have triggered
an outflow of capital from Hong Kong to the US to minimize foreign - exchange risks.