Massachusetts Sen. Elizabeth Warren has urged a hyperlink between cryptocurrency funds and firms based mostly in China that offered precursors for the opioid fentanyl.
In a Might 31 listening to of america Senate Banking Committee on China, Warren pointed to a report from blockchain analytics agency Elliptic to recommend a connection between cryptocurrency and “unlawful drug transactions” at Chinese language firms. Elliptic reported on Might 23 that 90% of roughly 90 China-based corporations supplying fentanyl precursors had been keen to simply accept fee in cryptocurrencies, together with Bitcoin (BTC).
“Crypto is supposedly banned in China,” mentioned Warren, continuing to quote information from the Elliptic report. “The variety of crypto transactions related to Chinese language fentanyl brokers elevated by 450% simply final 12 months alone.”
As we speak’s listening to is about defending our nationwide & financial safety from threats posed by China.
We should forestall U.S. tech, know-how, & financing from enabling the Chinese language navy—and tackle international funding that threatens nationwide safety.
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— Senate Banking and Housing Democrats (@SenateBanking) Might 31, 2023
Elizabeth Rosenberg, assistant secretary for terrorist financing and monetary crimes on the U.S. Treasury Division, instructed Warren that the drug brokers seemingly relied on the pseudonymous nature of crypto transactions for funds. Rosenberg confirmed Warren’s sentiment that crypto was one of many main fee strategies for Chinese language firms.
The Massachusetts senator mentioned she deliberate to reintroduce laws aimed toward addressing among the regulatory gaps affecting these funds to firms engaged within the unlawful drug commerce. Warren first launched the Digital Asset Anti-Cash Laundering Act in 2022 and has urged at earlier congressional hearings on crypto she was getting ready to reintroduce the invoice.
“Congress has talked about fentanyl lengthy sufficient. We suggest to do one thing to combat again.”
Associated: ‘If a authorities bans medication, it must also ban crypto’ — Belgium’s former finance minister
In line with information from the Nationwide Institutes of Well being, in 2021 there had been greater than 70,000 deaths involving the overdose of artificial opioids resembling fentanyl in america. One of the vital high-profile platforms that usually facilitated unlawful drug transactions utilizing crypto funds, Silk Highway, was shut down in 2013 and its founder, Ross Ulbricht, was sentenced to life in jail.
Journal: Cryptocurrency buying and selling dependancy: What to look out for and the way it’s handled