Cryptocurrencies Could Emerge As Top Save Haven For Chinese Investors Amidst Govt Crackdown
Credit: Bitcoin Exchange Guide
The Chinese government has decided to tight policies that target investors in the country and that hold their wealth overseas with the intention to avoid paying taxes. However, these investors that are now threatened by the government might move to cryptocurrencies and avoid being investigated by Chinese authorities.
Most of the Chinese investors with offshore accounts rely on the Swiss banking system. But it has not stopped the government to crack down on investors with wealth around the world.
The Chinese government is currently cooperating with different agencies all over the world (83 countries). These nations follow the Common Reporting Standard (CRS) that were established by the OECD.
This would allow the government to have direct contact with several tax havens such as Bermuda, Luxembourg, Switzerland and many others. All these 83 countries under CRS and OECD will be sharing data to the government, allowing it to target millionaire investors around the world.
The government finds it easy to crack down on individual investors that hold a large number of funds in other countries. But Bitcoin and other virtual currencies could work as a solution to these problems and improve the situation of these investors.
China has been always very hard with virtual currencies, and this could be related to the fact that the government cannot control flows and information. Since Bitcoin operates with a decentralized blockchain, it completely dislikes one of the most centralized governments all over the world.
Chinese investors could start to think in virtual currencies rather than in Dollars or Euros.