While the top 3 bitcoin exchanges are still being scrutinized by PBOC since January, a recent report of money laundry case via bter has raised concern for regulatory compliance issues in altcoin exchanges.
The author, a lawyer in Beijing, disclosed a case using bitcoin as money laundry tools to stress the importance of AML on bitcoin exchanges and a reminder for authorities of capital flight.
The suspects come from Bingyang, a small city notorious for telecom frauds in Guangxi province. There are constant demands for money laundry. With some self-education online, Xu, the laundry dealer, figured out how to clean money via bitcoin exchanges. Xu managed to hook up with Xiao, who was a committed criminal for a series of telecom crimes. They managed to pull off two jobs, laundering a total of 5.424 million RMB(~790k USD at spot rate) .
http://news.8btc.com/money-laundry-case-raises-concern-over-regulatory-compliance-among-chinese-altcoin-exchanges