A recent report from the Wall Street Journal has seen multiple cryptocurrency voices hit. This details China’s moneylanders are driving billions of dollars worth of illegal funds through financial institutions.
Paul Grewal, chief executive of Cryptocurrency Exchange Coinbase, says that despite “manufactured hysteria” over the role of cryptocurrency in funding illegal activities, “crime cash is the king.”
312 billion dollars of illegal money
Citing recent data from the US Treasury Department, the report alleges that a staggering $312 billion worth of funds have recently been moved by Chinese money launderers through US financial institutions. Dirty cash is primarily linked to Mexican drug cartels.
Banking institutions could face a major fine if they fail to flag a suspicious transaction. For example, TD Bank was forced to pay up to $3 billion after it was discovered that nearly $500 million had been washed by the Chinese network with the help of financial institutions.
Why Blockchain is Great
Greweal argues that blockchain, the technology behind various cryptocurrencies, could actually serve as a deterrent.
“Blockchain transparency and traceability serve as deterrents that help solve problems that decades of traditional compliance have not been able to address,” he said.
Transactions run on a public database, so anyone with the right software can view them.
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