Tax Imposed On Vancouver Driving Chinese Investors To Start Using Bitcoin

In a matter of days, Chinese investors who are part of the Vancouver real estate market will have to dance to the tune of the government as the 15 percent transfer tax has already been imposed, this was specifically targeted at investors from outside Canada. Sadly for the Chinese investors that will have to pay an extra 15 percent in order to have their money transferred out of Canada.

Chinese Investors in Metro Vancouver make up about 33 percent of the real estate market. A Chinese housing search engine indicated that Vancouver real estate increased by 134 percent for the first quarter of 2016. Most of the properties in Canada that Chinese enquired about had their value triplicated from $5.6 in 2014 to $14.9 billion last year.

Marc Cohodes who was a hedge fund manager highlighted the reason why Chinese find interest in Vancouver’s housing market. It happens to be that China has restriction on the outflow of funds, which allows the citizen to be able to move up $50,000 only out of the country in a year. Nonetheless, the Chinese investors are taking another route, disregard the rules and transfer huge amount of money into Vancouver’s housing market. Some of Chinese moguls use illegal means to bypass the restrictions of fund outflow.

Which is why Bitcoin has been the most common way for Chinese to transfer their money to other countries. A consultant explained that bitcoins are bought by Chinese then have it converted to paper wallets or offline to move cash out of the country. Bitcoin is being used by most companies to aid them get their cash transferred out of China faster without no trace being left behind in the country’s financial transaction.

Apart from most of the investment cash coming from China to Vancouver than it does to Bitcoin, Chinese know that Bitcoin can be used as another option. China is best known to be the most popular market to trade bitcoin. With the forthcoming hike on the 2nd of August, bitcoin’s value is likely to be effect if Chinese investors decide to have their funds stashed in to the crypto currency that they would have transferred to Vancouver. The Chinese bitcoin markets will be affected by $28.6 million Canadian dollars in a day, which would probably start a price rally.