South Korean Customs officials say that drug smuggling has increased due to the rise of cryptocurrency. According to the South Korean Customs Service, authorities seized 769 kilograms of drugs in 2023, up from 624 kilograms in 2022. The agency attributes the 18 per cent increase to the growing popularity of online transactions facilitated by digital currencies like Bitcoin and altcoins.
Cited by News Gyeongnam, the Korean Customs Service said: “Drug smuggling attempts are continuing due to high domestic drug prices compared to overseas, and the spread of non-face-to-face transactions on the Internet using virtual currency.”
In 2023, customs officials intercepted 327 kilograms of drugs sent via international mail, 275 kilograms in express cargo, and 148 kilograms from travelers entering the country. The drug seizures predominantly consisted of methamphetamines, ketamine, marijuana, and cocaine.
According to data from Jeon Yong-gi, a member of the National Assembly’s Land, Infrastructure, and Transport Committee, these drugs were valued at approximately $45.6 million.
Crypto News reports that drug dealers are using social media platforms and messaging apps like Telegram to market narcotics, often requesting payments in cryptocurrencies such as Bitcoin. These transactions can result in drugs being discreetly left in public locations for buyers, which complicates efforts by law enforcement to trace these drug sales.
South Korean lawmaker Jeon Yong-gi, who is a member of the National Assembly’s Land, Infrastructure, and Transport Committee, stated: “International mail and express cargo drug smuggling via aircraft has increased significantly.
“Incheon Airport, the Customs Service, the National Police Agency, and other related organizations need to thoroughly manage the situation to prevent drugs from becoming an everyday occurrence.”
Last February, South Korean President Yoon Suk-yeol declared a “total war” on cryptomarket drug trafficking.
Is crypto increasingly being used for drug transactions?
In April, ReadWrite reported that Indian and U.S. law enforcement busted a $360 million crypto-funded drugs ring. Two suspects flagged by the U.S. authorities were already known to be involved in drug trafficking, with links to a major international drug trafficking operation.
While in the United Kingdom, new measures were introduced to bolster law enforcement agencies’ powers in seizing cryptocurrencies associated with criminal activities.
In 2022, the the Government Accountability Office admitted that virtual currencies are being increasingly used in drug trafficking, due to its “anonymizing features.”
Featured image: Ideogram
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