Crypto and Drugs – What’s the Connection?
We’ve all heard the phrase “just say no” when it comes to drugs, and it seems like one Belgian finance minister, Johan Van Overtveldt, wants us to apply the same rule to crypto. It’s one of the most controversial topics out there right now, so let’s take a look at why this ex-minister wants crypto banned like drugs.
1. Crypto Can Help Fund Illegal Activity
The anonymity of cryptocurrencies makes them attractive to criminals wanting to carry out illegal activities. Whether it be drug trafficking, money laundering, or more, there’s no denying that it can be used for nefarious purposes. For this reason, it makes sense for Van Overtveldt to have somewhat of a bleak outlook when it comes to cryptos.
2. It’s Becoming a Bigger Problem
We can’t ignore the increasing amount of people using crypto fuelling these illegal activities. According to reports, the amount of crypto used to purchase drugs increased exponentially in 2020. This continuing upward trend proves that crypto is becoming harder to ignore and it’s providing more incentive for ex-ministers like Van Overtveldt to introduce stricter regulations.
3. Too Easy to Mask Your Identity
The main problem is that crypto currencies make it very easy for criminals to hide their identity and obscure their transactions. There are a lot of laws and regulations in place to ensure that traditional currencies aren’t abused in the same way, but with crypto, it can go undetected. It’s understandable why this is a concerning factor to some.
4. What Can Be Done?
It’s clear that there are some valuable benefits to using crypto, but steps need to be taken in order to make sure it’s not abused. Here are a few ideas on what can be done:
- Educate & Incentivize: Make sure people know the potential repercussions of using crypto to fund illegal activities. Introduce incentives to use it responsibly, such as discounts or rewards schemes.
- Regulate & Monitor: Implement regulations and monitor transactions to detect any suspicious ones. This will help to ensure that crypto isn’t abused.
- Increase Security: Improve the security measures around crypto so it’s harder to use it for illegal purposes. This could include introducing more sophisticated authentication and encryption methods.
It’s easy to understand why people like Van Overtveldt would be concerned about crypto being used for criminal activities. Crypto’s anonymity provides an easy way for people to fund illegal activities, and it’s becoming an increasingly bigger problem. That’s why it’s important that governments, security professionals, and industry professionals work together to make sure it’s not abused. Right now, it’s like the Wild West, but with the right regulations and security measures in place, we can make sure criminals don’t get away unscathed.
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