Virtual cryptocurrencies are increasingly linked with drug and human trafficking. Could more operational transparency be the answer?
marketplace that had offered a Bitcoin payment system, as one example of how virtual currencies can support illicit activity. It’s also possible to use virtual currency kiosks, which operate like ATMs, to deposit large sums of cash into virtual currency that can then be easily converted back to cash or transferred to others. This cuts down the risk of transporting bulk currency, Goodwin said, and offers some anonymity when making transfers.
“Drug cartels and transnational criminal organizations have also used virtual currencies to launder their trafficking profits,” she added.In the report, the GAO looked at how often this currency is linked with both drug and human trafficking. The report also highlighted the ways US agencies are collecting data about these incidents and attempting to counter them.
“SARs that referenced virtual currency terms quadrupled actually from over 10,000 in 2017 to over 40,000 in 2020,” Pendleton said on the same. “And SARs that mentioned both virtual currency and drug trafficking saw a fivefold increase over the same period.” Goodwin said they did not come across reports of virtual currencies being used for labor trafficking, but they did identify its use in the online commercial sex marketplace. The