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Bitcoin is used for money laundering based on trade

A new report by the U.S. Drug Enforcement Administration (DEA) states that bitcoin is used to facilitate trade-based money laundering (TBML) schemes.

25.Oct.17 4:58 AM
By Daria Zaytseva


Bitcoin is used for money laundering based on trade

The report published by the Department of Justice provides a broad overview of the efforts of the U.S. government to combat the illicit drug trade. However, the study includes a segment of cryptocurrencies, which notably states that criminals who launder funds through trading operations are using bitcoin, especially firms based in China.

DEA notes that many Chinese firms that produce goods now prefer to take bitcoin. Bitcoin is widely popular in China, because it can be used for anonymous transfer of value abroad, bypassing China's control over the capital.

The report does not contain any specific data on how much money is being laundered with the help of this tool. But it tries in detail to get bitcoin holdings through regulated exchanges, saying that Chinese groups prefer to use cryptocurrency to circumvent capital controls.

Elsewhere in this section, the authors argue that over-the-counter (OTC) bitcoin brokers are helping to simplify these cross-border transactions - a trend they are writing will continue.

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