{"id":2207164,"date":"2024-11-15T14:11:48","date_gmt":"2024-11-15T05:11:48","guid":{"rendered":"https:\/\/koreapro.org\/?p=2207164"},"modified":"2024-11-15T14:11:48","modified_gmt":"2024-11-15T05:11:48","slug":"south-korea-grapples-with-how-to-stymie-crypto-fueled-drug-trade","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/11\/south-korea-grapples-with-how-to-stymie-crypto-fueled-drug-trade\/","title":{"rendered":"South Korea grapples with how to stymie crypto-fueled drug trade"},"content":{"rendered":"
South Korea is well-known for its <\/span>strict stance on drug use<\/span><\/a>, often branding itself as a \u201cclean\u201d society with zero tolerance for illegal substances.<\/span><\/p>\n However, the use of cryptocurrencies to facilitate online drug purchases presents a rising challenge, as the decentralized and pseudonymous nature of digital assets is complicating efforts to maintain control over the illegal drug trade.<\/span><\/p>\n In August, the <\/span>Seoul Southern District Prosecutors\u2019 Office<\/span><\/a> uncovered a network of university students buying drugs with cryptocurrencies. This case is far from isolated; <\/span>similar incidents<\/span><\/a> in 2022 involved drug purchases via messaging platforms like Telegram, paid for using cryptocurrencies.<\/span><\/p>\n With the rise of non-face-to-face drug transactions and digital currency use, South Korean authorities face mounting pressure to tighten their regulatory framework \u2014 without stifling a burgeoning financial sector.<\/span><\/p>\n HOW CRYPTOCURRENCIES FACILITATE DRUG PURCHASES<\/b><\/p>\n One of the critical factors making cryptocurrencies attractive to drug dealers is their ease of use and relative anonymity.\u00a0<\/span><\/p>\n As seen in the case of the university students, users can make payments through crypto exchanges and transfer funds to drug dealers using messaging apps like Telegram. The drugs are then hidden in drop locations, eliminating the need for direct contact between buyers and sellers.<\/span><\/p>\n In 2023, South Korea saw a significant 50% increase in drug-related arrests, with over 27,000 individuals apprehended, according to a white paper on Drug Crime published by the Supreme Prosecutor\u2019s Office\u2019s Narcotics and Organized Crime Department.<\/span><\/p>\n Authorities have cited the rise of cryptocurrency transactions and secure messaging apps as major contributing factors. Despite the perception that cryptocurrencies offer complete anonymity, this is not entirely accurate. While blockchain transactions are pseudonymous, they are also publicly recorded and traceable with the right tools and expertise.<\/span><\/p>\n This traceability allowed South Korean police to track cryptocurrency transactions in the aforementioned case in August, uncovering the identities of buyers like \u201cUser A\u201d who spent over $8,800 (12 million won) on illicit drugs in 2023.<\/span><\/p>\n Anndy Lian, an intergovernmental blockchain advisor, told <\/span>Korea Pro<\/span><\/i> that the inherent transparency of blockchain can deter criminals but that many falsely assume that crypto transactions are entirely anonymous.<\/span><\/p>\n