Crypto currency is the most popular asset among criminals who launder money through the trade. This is evidenced by the data of the new report of the US Drug Enforcement Administration (DEA).
— DEA HQ (@DEAHQ) 24 октября 2017 г.
The DEA emphasizes that bitcoin is very popular among Chinese residents.
Chinese manufacturers who want Bitcoin will undoubtedly ease the money laundering process for many TCOs. Currently, TCOs face scrutiny from U.S. banks when wiring money from the United States to Chinese manufacturers. However, a TCO purchasing Bitcoin via a licensed money service business (MSB) without raising red flags will face no further scrutiny when transferring the Bitcoin to China. Many TCOs can also buy Bitcoin from individuals selling Bitcoin on the Internet with no MSB license. Thus, many TCOs will be able to convert their cash drug proceeds to Bitcoin and buy Chinese goods with no fear of oversight from a formal financial institution.
According to the DEA, most criminals buy bitcoins on regulated cryptoexchanges and when transferring capital abroad they use over-the-counter trading platforms.
Also experts from DEA suggest that over time the popularity of such a scheme will grow.