US Senator Elizabeth Warren underlined a potential link between digital asset payments and Chinese organisations supplying precursors for the lethal opioid fentanyl, resulting in crypto being caught up in a heated tangle.
During a Senate hearing on Wednesday, U.S. Senator Elizabeth Warren pointed out the alarming use of cryptocurrencies in the Chinese fentanyl trade. Warren stressed on the importance of imposing necessary laws to disrupt this hazardous channel. She also referenced data from research firm Elliptic, which disclosed that more than 90 Chinese businesses engaged in fentanyl precursor shipping accept cryptocurrency as a form of payment.
There are concerns about the usage of cryptocurrencies in illicit activities, given that they are purportedly banned in China. The Elliptic report presented compelling data revealing a remarkable 450% increase in crypto transactions connected to Chinese fentanyl brokers within a single year.
The inherent anonymity of cryptocurrencies has undoubtedly made them an appealing option for illegal drug syndicates and producers of precursor chemicals, facilitating pseudonymous transactions that pose challenges for tracking.
Senator Warren’s Digital Asset Anti-Money Laundering Act aims to disrupt the flow of crypto payments fueling the fentanyl trade. With the reintroduction of this bill in the current Congress, she expressed determination to cut off the funding that cryptocurrencies provide to this illicit market. By leveraging legislation to counter the pseudonymity of cryptocurrencies, Warren believes it is time to shut down the channels supporting the fentanyl trade.
Understanding and addressing the risks associated with the usage of cryptocurrency in the illicit drug trade requires attention to detail regarding the relationship between digital currencies, illegal activities, and global regulations. The far-reaching impact of the fentanyl trade facilitated by cryptocurrencies necessitates international cooperation to effectively tackle these issues
