White House Cracks Down on Cryptos Used for Purchasing Illicit Drugs
The White House issued two advisories on illicit drug purchases in the United States on Wednesday, referencing the role of cryptocurrencies allegedly used in these transactions.
The advisories addressed to several financial institutions and digital payment platforms, stating that cryptocurrencies can be and have been used for illicit drug purchases, targeting Bitcoin, Bitcoin Cash, Ethereum and Monero in particular.
The advisory states:
“An analysis of sensitive financial data indicates that domestic illicit drug manufacturers, dealers, and consumers use online payment platforms or CVC (convertible virtual currency) to purchase precursor chemicals or completely synthesized narcotics primarily sourced from China.”
Payment methods, including cryptocurrencies, were examined as the White House aimed to “end the fentanyl epidemic” by issuing the financial advisory with other government agencies as well.
The report also included methods of tracking and discovery payments for illicit drugs using convertible virtual currency such as wallet addresses and IP addresses along with transaction hashes. Financial institutions are also encouraged to collect transaction details in case of any suspicion which could be useful to law enforcement.