- A recent Chinese report on drug trafficking has revealed that drug traffickers have started to use cryptocurrencies as a way to transfer money.
- This is because traditional methods such as online bank transfers are becoming increasingly difficult to use.
- The report also states that game currency transactions are being used more frequently for the same reason.
Cryptocurrencies have often been associated with illicit activity due to their anonymous nature. The drug traffickers have opted for crypto transfers in 2021 since online bank transfers have become more difficult to use.
The Chinese government released a report revealing that the new development in 2021 is the switch of drug money transmission from online bank transfers to cryptocurrency and game currency transactions.
According to the study, the drug market is continuing to expand online, with more use of money and drug distribution and person-to-person transaction models, while “Internet + logistics delivery” non-contact drug trafficking techniques have grown in popularity.
Hook-up transactions are created from broad chat platforms to specialized social networks, second-hand marketplaces, game systems, and even the dark web. In addition, the use of various intelligent hardware has become an important link in drug trafficking.
While online bank transfers are still the main way that traffickers move money, the study found that crypto transfers have increased in 2021. The use of digital currency and gaming currencies to facilitate drug trade transfers is becoming more common; bulk logistics now handles drug delivery as well as small deliveries. Virtual currencies have also fueled the growth of fentanyl and other synthetic opioid sales.
It is also worth noting that China’s strict policy on cryptocurrency continues as the country’s Supreme Court recently declared it illegal to use Bitcoin or any other cryptocurrency as a means for fundraising. The above-mentioned report will likely add to the negative sentiment around cryptocurrencies in China.