The government of China since early 2018 has stiffened policies aiming at millionaire investors in the country holding their wealth overseas to evade huge taxes, and it might drive local investors to other assets such as crypto.
Chinese investors depend on the Swiss offshore banking industry, Hong Kong real estate market, and foreign stock markets to hoard millions of dollars’ worth of properties, assets, and cash outside of mainland China.
However, local financial authorities have begun to ban investors that gather significant wealth in international markets.
The Chinese government in recent months have started to join forces with agencies in 83 countries that follow the Common Reporting Standards (CRS) created by the Organization for Economic Cooperation and Development (OECD).
The connection of the Chinese government with the OECD and CRS is anticipated to result to direct communication and cooperation with Virgin Islands, Bermuda, Luxembourg, Switzerland, and the Bahamas, five regions that are safe havens for investors to save huge amounts of capital in the offshore banking sector.
In September, China announced that all 83 countries under the CRS and OECD will share data connected to financial accounts held by Chinese citizens, permitting the government to eye high profile millionaire investors.