Chinese police claim that cryptocurrencies are used in drug trafficking
By Kateryna Salnichenko 1924 27 Jun 2022
The Ministry of Public Security of China reported on using digital currencies in operations related to illicit drug trafficking. Such data was published in the 2021 Drug Report.
According to the China Anti-Drug Network, the use of illicit substances and related crimes have decreased over the past year. However, against the backdrop of a steadily active global production of drugs, the number of people with addiction continues to grow due to the implementation of online transactions.
The representatives of the Ministry say that offline and online areas are becoming more and more intertwined in the current drug trafficking.
The report states that the drug market continues to expand online. At the same time, contactless payment methods, gaming platforms, niche social tools, and darknet transactions are gaining momentum.
The counter-narcotics specialists paid particular attention to the peculiarities of the circulation of funds. Thus, not only online transfers are now used to pay for illicit substances, but also virtual and game currencies.
Speaking about plans for the current year, the specialized departments have determined “two battlefields – online and offline” for themselves. Professionals of the sphere are going to improve the drug trafficking control system, taking into account the specifics of China, as well as prevent the risks associated with it and consolidate efforts for the “general improvement of the drug situation.”
According to the decision of the People’s Bank of China, since September 2021, all transactions with cryptocurrency are considered illegal financial activities. Shenzhen regulators once again reminded this on June 23. Thus, they announced their readiness to prevent risks in trading digital currency. They also emphasized that it and businesses related to it are prohibited.