According to Chinese Police, Cryptocurrencies are Being Used to Launder Drug Money
- According to the China Drug Crime Report 2021, 5,000 drug trafficking cases involving internet transactions were solved by police last year, accounting for around 9.2 % of all drug-related cases.
- According to the research, “the movement of drug cash has spread beyond online bank transactions to cryptocurrency and in-game currencies.
- The police investigation corresponds with China’s escalating anti-crypto rhetoric, pushing for more acceptance of its Central Bank Digital Currency (CBDC).
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Since their inception, cryptocurrencies have been used for a variety of purposes, including as a medium of exchange, a unit of account, and a store of value. However, Chinese police say that they are increasingly being used to launder drug money. Authorities in Shanghai have busted several cryptocurrency-based drug trafficking operations.
The use of cryptocurrencies for illegal purposes is likely to continue as they become more mainstream. Given their anonymity and decentralized nature, cryptocurrencies provide criminals with a way to launder money without detection. As such, it is important for law enforcement agencies to be aware of this trend and develop strategies for investigating and prosecuting those who use cryptocurrencies for criminal activities.
According to the China Drug Crime Report 2021, police cleared 5,000 drug trafficking cases involving internet transactions last year, accounting for around 9.2 % of all drug-related crimes. This is a small percentage compared to the overall number of drug-related cases. Still, it shows that the internet is becoming a more popular platform for this type of illegal activity.
The ease of use and accessibility of the internet makes it an attractive option for criminals looking to sell drugs. There are many websites and dark web forums dedicated to facilitating these transactions, making it easier than ever before for buyers and sellers to connect. And because these transactions take place online, there is less risk of getting caught by law enforcement. This makes it even more important for police to crack down on these activities and find ways to track down those selling drugs illegally online.
While the number of drug trafficking cases involving online transactions is relatively small compared to other types of crimes, it is still a growing problem that needs to be addressed. With the Anonymous nature of the internet making it difficult for law enforcement to track down criminals, we need to find new ways to raise awareness about this issue and stop those participating in this illegal activity from getting away with it.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
