Chinese Crypto Networks Expand into African Nations
China's underground crypto economy has expanded into five sub-Saharan African countries, targeting Angola, Kenya, Mozambique, Madagascar, and Guinea-Bissau. According to a Chainalysis report, Chinese-language money laundering networks (CMLNs) have begun openly marketing their services on encrypted messaging app Telegram.
The advertisements offer bulk stablecoin trading, 'money movement', and 'over-the-counter' conversions that bypass Know Your Customer (KYC) compliance checks. Vendors claim to provide 'direct from the source' supply with stable volumes and low exchange rates.
The growth of these networks is linked to China's domestic capital controls, which fuel underground liquidity. Wealthy individuals seeking to move money out of China and evade controls provide the impetus and liquidity pool needed to service transnational organised crime groups.