China bitcoin arbitrage ends as traders work around capital controls

Bitcoins created by Mike Caldwell are seen in this photo illustration at his office in Sandy, UtahBy Gabriel Wildau SHANGHAI (Reuters) – The price gap between bitcoins trading in Chinese yuan and those sold for other currencies has evaporated in recent days, highlighting the porous nature of China's capital controls. Chinese bitcoin chat rooms buzzed last month as investors noticed that the digital currency as sold on China's biggest exchange was more expensive, in dollar terms, than bitcoins traded abroad using dollars, creating a tempting arbitrage play. Traders could earn profits by buying bitcoins using dollars on a foreign exchange such as Mt. …

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