It was reported that some of the most important drug cartels in Mexico are relying on Bitcoin more and more in order to finance their unlawful activities.
Law enforcement officials have declared that this situation can be encountered across Latin America.
Among the biggest crime organizations involved are the Sinaloa Cartel and the Jalisco New Generation Cartel.
The Sinaloa Cartel, for example, is considered to be the largest and most powerful drug trafficking organization in the Western Hemisphere.
Meanwhile, the Jalisco New Generation Cartel, previously known as Los Mata Zetas, is a semi-militarized Mexican criminal organization. Its headquarters can be found in Jalisco. Its leader is one of the most wanted drug lords on the globe, Nemesio Oseguera Cervantes.
The United Nations Office on Drugs and Crime stated that Mexican cartels are laundering about $25 billion per year through Bitcoin, e-commerce, and the Internet.
Both of the aforementioned cartels are using small online Bitcoin purchases in order to work around money-laundering regulations and are doing so at an increased rate.
The cartels divide drug proceeds into small payments in order not to be detected and then use the accounts to buy small amounts of bitcoin online, thus hiding the source of the funds and allowing them to make their payments to associates around the globe.
Raul Martin del Campo, a representative for the US Drug Enforcement Administration, declared:
“The INCB is issuing a red alert for countries to come to an agreement and consider how to better regulate this (cryptocurrency) payment system.”