China Blames Bitcoin Transactions for Leading to More Synthetic Drug Deaths

China is expected to ban a new synthetic heroin substance called U-47700, and they blame bitcoin as the currency “criminals” use to conduct transactions with their customers. They tend to think anonymous bitcoin trades on the dark web lead to people’s deaths at the hands of these synthetics.

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A June 19th article by ABC News read,

Yu said suspects use the internet to communicate with customers and use the anonymized digital currency bitcoin to transfer money, and that authorities were working with internet companies to try to stop such trade and the advertising of drugs on websites.

The drug in question is a heroin-style substance that Chinese authorities cannot seem to get a grip on. The article suggested that chemists constantly change the chemistry of the chemicals, which makes them technically legal. Then, using the dark web, drug dealers do cryptocurrency trades with Americans that lead to the deaths.

Dark Web Drug Usage Increase; Chinese Versus European Use

This news comes as recent China Blames Bitcoin Transactions for Leading to More Synthetic Heroin Deathsresearch on dark web market activity has allegedly intensified. According to a bitcoin.com article written by Samuel Haig, research by the Global Drug Survey has indicated growth in dark web purchase numbers.

Haig said, “European nations see the highest adoption of darknet markets among drug users. Finland showed the greatest uptake of dark market adoption, with 41 percent of Finnish drug users reporting that they had purchased narcotics using the dark web. Denmark came second, 27.2 percent, followed by The United Kingdom (25.3 percent), Wales (25 percent), Sweden (24.5 percent), and Scotland & Spain (22.5 percent).”

Interestingly, China’s/Asia’s numbers do not match the significance of the European use of the dark web to secure drugs. Still, governments are viewing digital currency transfers used in drug exchanges as more and more of a threat. It is true that law enforcement officials and agents have known digital currencies are a big aspect of the dark web…but now it appears they are wanting to blame synthetic heroin deaths strictly on bitcoin darknet transactions from Chinese merchants.

More politicians? More Regulations? Or more Bitcoin?

Adding insult to injury, there China Blames Bitcoin Transactions for Leading to More Synthetic Heroin Deathshave been a flurry of threats to regulate and ban and control bitcoin. Some countries have already outright banned it (Ecuador) or have initiated strict restrictions (China). Therefore, with more condemnations of drug trades using the currency, it is possible that regulators will be further galvanized to lead an assault on bitcoin and dark web cryptocurrency trades.

Nonetheless, cryptocurrency market capitalization continue to soar, dark webs continue to proliferate, and more people continue to adopt the currencies. In Ecuador, regulators have not been able to stop the currency’s growth, and in China dark web transactions are still in full swing. No telling how politicians will decide to handle the ensuing growth of the crypto darknet marketplaces.

Do you think government intervention will affect the use of bitcoin? Let us know in the comment section below!

UK Regulator Warns Investors Bitcoin Trading is Risky

A high ranking UK regulator recently warned people about the pitfalls and perils of bitcoin investing. Chris Woolard, The Financial Conduct Authority’s executive director of strategy and competition, said there are many trades happening in the cryptocurrency and bitcoin space. He just wants investors to know there are risks with speculating in digital assets, that people could lose a lot of money. 

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UK Regulator Warns Investors Bitcoin Trading is Risky

Chris Woolard

A Financial London News article elaborated on Woolard’s considerations, saying, “Digital currencies are volatile. Bitcoin hit an all-time high of almost $3,000 this month, with some analysts saying its value could continue to soar. But in June last year, bitcoin was worth less than a third of this figure.” The article continued by claiming Woolard just wants to shield people, because they may believe digital assets are protected financial instruments, when they are not.

Apparently, this announcement from Woolard and the Financial Conduct Authority came right after Hargreaves Lansdown launched two exchange-traded notes. The notes provide a way for investors to keep a bead on bitcoin’s price, but it does not appear to allow for trading options.

The Agency’s thoughts on Digital Assets; Regulator Perspectives

Even though the supermarket Hargreaves Lansdown has not currently listed options for bitcoin, Woolard and the Financial Conduct Authority does not harbor negative attitudes toward cryptocurrencies. They do not want to outright ban them or make hasty decisions. They just want people to know these digital assets could be a volatile and untrustworthy investment. Woolard said:

We don’t prohibit regulated firms from engaging in digital currency trading, nor do we prohibit banks from offering banking services to deal with currency firms that use [blockchain]. I am not saying that we view digital currencies as an inherently bad thing… but we do have to exercise a degree of caution

The regulator has concerns about blockchain technology and cryptocurrency, but he is going easy on them compared to other regulators. For instance, Australia’s Opposition Leader, Bill Shorten, wants to regulate bitcoin and cryptocurrency out of existence because it allegedly fuels terrorism. The United States also has hamstringing legislation in the works, meant to cripple people’s use of bitcoin. This is reflected in senate bill 1241, which may expect citizens crossing borders to declare digital assets over 10k, among other, more authoritarian clauses.

Times are Changing: The New Cryptoeconomy

These kinds of regulatory UK Regulator Warns Investors Bitcoin Trading is Riskyinitiatives may or may not come as a shock to the bitcoin community, but the fact regulators are becoming more interested in cryptocurrencies should be noted. As soon as Japan made bitcoin an accepted currency, and the price surged, regulators began to wake up.

Now they are shooting from the hip with commentary, considerations, advice, and plans to regulate and control cryptocurrencies. It cannot be known how these attempts to control bitcoin and other digital assets will pan out, but it is certainly true time is changing in regards to how society-at-large will try to manage the newly emerging cryptoeconomy.

Do you think regulations will negatively impact bitcoin and other cryptocurrencies? Will regulators ultimately fail? Let us know in the comments below.