wealthy Chinese people are seizing cryptocurrency as a faster method of transferring RMB abroad than, say, investing in real estate.
According to MarketWatch, People's Bank of China (PBOC) in 2011 said:
"Corrupt Chinese officials and employees of state-owned companies have absconded with about 800 billion yuan ($123.7 billion) of public money over 15 years through 2008, much of it making its way to the U.S., Canada, Australia and the Netherlands";
"16,000 to 18,000 individuals have fled the country with ill-gotten funds over a 15-year period".''
This is $6.9-$7.7M per official. The PBOC asked for help from Western governments to stop this.
"The PBOC said in the report it planned to work more closely with foreign governments to block the officials from escaping with looted funds. It also said it has increasingly begun to take part in international anti-money-laundering organizations."
Instead of helping, Canada, Australia and U.S. provided resident visas to the Chinese if they brought over a certain amount of money. The Chinese bought thousands of expensive houses. Real estate is a multi-billion dollar money laundering scheme, aided and abetted by governments.
In 2012, the Wall Street Journal explains how the Chinese accelerated this money laundering (with the help of Western governments). The situation has gotten so bad, that the Chinese government is taking matters into its own hands:
"Police sent from China have been secretly investigating officials suspected of money laundering in Canada, where they are believed to have invested a “staggering” amount into real estate."
"…global outflow of Chinese capital hit a record of $18 billion in 2014, and the amount flowing to Canada – specifically Vancouver – is rising."
All other types of money laundering pales in comparison. When the government tells you that cryptos needed to be regulated to stop money laundering, their mantra is "do as I say, not as I do".
