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CCTV Script 29/05/13

— This is the script of CNBC's news report for China's CCTV on May 29, Wednesday.

Welcome to the CNBC Business Daily.

U.S. authorities have charged 7 men and shut down digital currency system, Liberty Reserve, over allegations that it was used for money laundering.

CNBC's Jackie DeAngelis reports.

[Sound on tape by Jackie DeAngelis: U.S. authorities claiming that Costa-Rican based Liberty Reserve was a money transfer hub for criminal gangs trafficking in drugs and child pornography in an indictment unsealed today. Liberty Reserve saying that the firm "will not do business with anyone suspected of, or directly involved in money laundering" - so denying exactly what's being charged.

Liberty Reserve's website has now been seized by the U.S global illicit financial team, it now shows logos for the Department of Justice and the Department of Treasury, as well as the Secret Service.

But it's on older versions of the website that more information is coming to light. On those older versions, the company saying that it had the "right to refuse a transaction at any time should suspicion arise that it may be connected to money laundering or criminal activity."

Liberty Reserve also putting a product called "liberty guard" front and center on the old site, it described it as a plug-in on Firefox browsers that would ensure the security of users' transactions.

L-R is how Liberty Reserve referred to its digital currency, that digital currency could be exchanged into cash.

It's similar, but not related to, Bitcoin which has attracted attention as of late - and over the past decade, digital currency has become more popular.

Meantime, authorities in Spain, Costa Rica, and New York saying that they had arrested five people on Friday and seized bank accounts and internet domains associated with liberty reserve as part of the indictment.]

And speaking to CNBC earlier, Peter Vessenes from the Bitcoin Foundation said that Liberty's oversight issue does not spell the end of the virtual currency world.

[Sound on tape by Peter Vessenes, Chairman & Executive Director, Bitcoin Foundation: It looks right now like people they want to get out for a long time that just have been unwilling to get regulated for whatever reason. so we're seeing a bit of a sweep right now, there's nothing to indicate that good players who are working hard to stay regulated have anything to worry about.]

Vessenes also advised caution when using virtual currencies but added that the trend is pretty much here to stay.

[Sound on tape by Peter Vessenes, Chairman & Executive Director, Bitcoin Foundation: We often advise people to make sure you're kosher with how the U.S. regulations work - it's good business in a global money environment. so the U.S. is really picky they want to know, for any transaction from start to finish who it came from and where it went. but it's not a big burden, you've just got to pick you partners to make sure they want to keep bad guys out like you do.]

Chloe Cho, from CNBC's Asia headquarters.