(Rejected) Latin American Crime Cartels Switches To Crypto For Money Laundering

A new report from Reuters reveals that Latin American Crime Cartels are now switching to cryptocurrencies to carry out their money laundering activities. Per the report, the US and the Mexican authorities affirm that Bitcoin is widely used by drug cartels such as the Jalisco New Generation Cartel (CJNG) and the Sinaloa Cartel of captured kingpin Joaquin “El Chapo” Guzman.

“There’s a transition to committing crimes in cyberspace, like acquiring cryptocurrencies to launder money ... and the pandemic is accelerating it,” said Santiago Nieto, head of the Mexican finance ministry’s financial intelligence unit (UIF).

The discovery of these transitions to cryptocurrencies for organized money laundering activities was further confirmed owing to the implementation of the law to track cryptocurrency transactions above 56,000 pesos ($2,830) in Latin American nations like Mexico, Argentina, and Brazil. This law put into place helped in the capture of suspected human trafficker Ignacio Santoyo.

The rising embrace of Bitcoin and cryptocurrencies for money laundering in the Latin American world goes beyond the activities of human traffickers, cybercriminals are also beginning to have a safe haven with the digital assets with anonymous transaction features. Per the reports, the Mexican authorities in May 2019, detained suspected gang leader Hector Ortiz in the central state of Guanajuato after he spent “tens of thousands of dollars” on bitcoin, the proceeds of cyber attacks on banks.

Bitcoin and Crypto Gaining Wider Acclaim for Cash Transactions

The reported activities of cybercriminals and money launderers drawing on Bitcoin and digital currencies for their transactions do not erode the growing movement around the world to embrace crypto to displace cash related transactions.

With the coming of the coronavirus pandemic, many more merchants are now offering to accept payments in Bitcoin and altcoins. The latest of these embrace for digital currencies comes following the announcement by PayPal that it now supports a selected range of cryptocurrencies for transactions across its over 28 million merchants worldwide.