ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.


24hr ---

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story


Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
Ether Price Analysis
Contact Us

DEA Names Bitcoin As Tool Used To Skirt Chinese Capital Flight Regulations




The US government agency claims that Bitcoin has been used to illicitly remove money from the Chinese economy and warns that further value extraction is likely.

In its 2017 National Drug Threat Assessment, which was released this month, the Drug Enforcement Administration (DEA) states that bitcoin has been used for the purposes of “circumventing China’s capital controls.”

Various officials and agencies within the Chinese government, possibly motivated by the threat of capital flight, have issued statements and directives relating to virtual currency over the past year, including some that could serve to inhibit its transfer out of the country. From February 2017 until the beginning of June, Chinese cryptocurrency exchanges complied with a People’s Bank of China directive to freeze all cryptocurrency withdrawals. After trading resumed, Chinese authorities released a notice ordering that “All trading exchanges must by midnight of Sept. 15 publish a notice to make clear when they will stop all cryptocurrency trading and announce a stop to new user registrations.” In the wake of the order, several exchanges have already ceased operations.

The DEA report also claims that in addition to enabling capital flight, cryptocurrencies’ “anonymizing nature and ease of use” make them an attractive money laundering tool for transnational criminal organizations. The document alleges that there are two primary ways in which these groups collaborate with Chinese actors to use bitcoin (which it mentions by name) to mask the source of their wealth.

According to the first scheme, they “purchase large shipments of ‘made-in-China’ goods” via bitcoin. These wares are then “shipped to businessmen in Mexico and South America who reimburse the [organizations] in local currency.”

The second technique involves money brokers affiliated with Chinese underground banking systems that sell “Bitcoin to drug traffickers for cash earned from drug sales in the United States, Australia, and Europe. This drug cash is then sold to Chinese nationals in exchange for Bitcoin the Chinese nationals use to transfer the value of their assets outside of China,” meaning that the virtual currency is implicated in both laundering money and transporting capital out of the Chinese economy.

The report warns that “The increasing use of [over-the-counter] Bitcoin brokers, who are capable of transferring millions of dollars in Bitcoin across international borders, as part of a capital flight scheme is expected to continue to intertwine criminal money laundering networks with capital flight.”

Adam Reese

Adam Reese is a Los Angeles-based writer interested in technology, domestic and international politics, social issues, infrastructure and the arts. Adam holds value in Ether, Bitcoin, and Monero.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest DEA, capital flight or other Ethereum law and legislation news.