The Global Subterranean Flow of ‘Shadow Money’
Introduction: The Underground Economy Unleashed by China
China, the world’s second-largest economy, has treated cryptocurrencies—including trading and mining—with the same severity as illicit narcotics, imposing a total ban.
The government had seemingly constructed an iron wall designed to maintain perfect control over citizens’ financial activities and prevent the free movement of capital.
Yet, behind this ostensibly impenetrable barrier, a massive pool of Chinese wealth—estimated to be in the tens or even hundreds of trillions of yen—is circulating globally as a digital subterranean river.
This is illicit wealth escaping government surveillance, rapidly passing through the “loopholes” of global financial hubs, and acting as a colossal fuel for international money laundering operations.
In this first part of our series, we delve into the profound reasons behind China’s prohibition of cryptocurrencies and reveal how this very ban inadvertently accelerated a giant, overseas money-laundering industry.
