Chinese Crypto Brokers Are The Tool Mexican Drug Cartels Use To Launder Money

One of the biggest fears for regulators about cryptocurrency is that of the possibility to be used as a tool for money laundering. The law enforcement of the United States has expressed their worries that Mexican drug cartels use crypto channels to launder money and in today’s crypto news we find out more.

According to law enforcement reports, Chinese crypto channels are where the Mexican drug cartels find a way to break the law. The senior official at the US Drug Enforcement Agency Paul Knierim says that the concerns come at a time when Chinese exports of chemicals used in the process of making drugs are increasing. Knierim said:

‘’The shift toward Chinese and Asian money launderers is believed to be, in part, due to the natural relationship created by the large volume of both licit and illicit trade goods and chemicals imported from China. The use of an Asian money broker simplifies the money laundering process and streamlines the purchase of precursor chemicals and paraphernalia utilized in manufacturing drugs for street sales.’’

The DEA pointed out that over the past 10 years there has been a decline in the amount of cash seized by the law enforcement which could mean that there are new methods of moving cash without being noticed.

The government agency also noted that the Chinese Underground Banking Systems are the most important channel for money laundering. Many CUBS brokers are turning to bitcoin and drug traffickers also turn to cryptocurrency because of their untraceable nature.

Despite the fact that there are plenty of cryptocurrencies used to launder money due to their private nature, there are also many of which show transparent transactions and can be viewed on the blockchains.