Crypto Emerges as Key Tool in China’s Money Laundering Networks: Report

China’s long-running campaign to restrict capital flight is being undercut by its own criminal networks, which have increasingly turned to Bitcoin and other digital assets to move money across borders, according to new research. Key Takeaways: Chinese money laundering networks are increasingly using Bitcoin and USDT to bypass strict capital controls. The same networks now serve Western criminal groups, including the fentanyl supply chain. Researchers warn that crypto-enabled laundering has become so globalized that no single jurisdiction can tackle the problem alone. A paper published this month by Kathryn Westmore , a senior research fellow at the Centre for Finance and Security at the Royal United Services Institute, argues that cryptocurrencies have become a central pillar of China’s underground financial system. Chinese Laundering Networks Turn to Crypto to Evade Capital Controls Westmore said Chinese Money Laundering Organisations (CMLOs) are now routinely using virtual assets as conduits for illicit cash. “Increasingly,...

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