White House cracks down on Cryptos used for purchasing illicit drugs

The White House issued two advisories on illicit drug purchases in the United States on Wednesday, referencing the role of cryptocurrencies allegedly used in these transactions.  

The advisories addressed to several financial institutions  and digital payment platforms , stating that cryptocurrencies can be and have been used for illicit drug purchases, targeting Bitcoin, Bitcoin cash, Ethereum and Monero in particular.    

Payment methods, including cryptocurrencies, were examined as the White House aimed to “end the fentanyl epidemic” by issuing the financial advisory with other government agencies as well.   

The report also included methods of tracking and discovery payments for illicit drugs using convertible virtual currency such as wallet addresses and IP addresses along with transaction hashes. Financial institutions are also encouraged to collect transaction details in case of any suspicion which could be useful to law enforcement.   

The US Treasury Secretary Mnuchin also stated last month that cryptocurrencies are dominated by illicit activities. President Donald Trump also commented on Bitcoin, explaining that it is highly volatile and “based on thin air.”

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