U.S. Drug Enforcement Administration (DEA) asserts a new statement that Bitcoin is being used to ease trade-based money laundering (TBML) schemes.
The report declares by the Department of Justice, offers a broad overview of the U.S. government’s effort to police about illegal trading of Bitcoin. However, including in the study; especially firms of China are greatly involves and using Bitcoin in their trading operations to execute the money laundering process.
The DEA states:
“…many China-based firms manufacturing goods used in [trade-based money laundering] schemes now prefer to accept bitcoin. Bitcoin is widely popular in China because it can use to anonymously transfer value overseas, circumventing China’s capital controls”.
The report does not estimate the appropriate figures regarding how much money laundering through this means. But it contains detail efforts to obtain Bitcoin holdings through regulated exchanges. However, listing that cryptocurrency use by the China firms in an effort to regulate the capital.
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Elsewhere in that part, there is an argument by paper’s author mentioning that OTC Bitcoin brokers are aiding to facilitate these cross-border transactions.
The report also states,
“The increasing use of OTC bitcoin brokers, who are capable of transferring millions of dollars in bitcoin across international borders, as part of a capital flight scheme is expect to continue to intertwine criminal money laundering networks with capital flight”.