Chinese investors have sped up their capital outflows to other countries. Japanese regulators recently found that Chinese investors were remitting virtual currency to Japanese companies and then converting it into Japanese yen.
According to The Asahi Shimbun, Japan’s National Tax Agency discovered, in the course of an investigation into corporate fund flows, that a Japanese photography company opened a virtual currency trading account to accept virtual currency sent from China that would then be converted into Japanese yen. The company accepted a total of 27 billion yen ($235 million) in funds over a three-year period ending March 2019. After charging a handling fee, the Japanese company then invested in areas such as real estate, as instructed by three Chinese investors who communicated via Chinese social media WeChat.
