The US House of Representatives has passed a bill requiring the Comptroller General of the US to study how cryptocurrencies and online marketplaces “are used to facilitate” human trafficking (sex trafficking) and drug trafficking. The bill garnered broad bi-partisan support.
The purpose of the study is to provide a research basis for the eventual crafting by Congress of, “regulatory and legislative actions to put an end to these illicit activities.”
The bill was introduced by Representative Juan Vargas of the 51st District of California. The district runs from the California Coast near San Diego all along the southern border of California to the state’s Eastern border with Arizona.
In the press release from Representative Vargas regarding the passing of the “Fight Illicit Networks and Detect (FIND) Trafficking Act of 2019 (H.R. 502),” the Congressman called the passing of the bill, “a critical first step for Congress to better understand the full extent of how virtual currencies are being used to facilitate drug and sex trafficking.”
He also stated:
“I am glad to see that my bill, the FIND Trafficking Act, passed out of the House with strong bipartisan support…H.R. 502 will equip us with the information needed to make our communities safer by proposing effective legislative solutions to combat these illicit crimes. I look forward to seeing the same level of support for this legislation in the Senate.”
While noting that not all transactions involving the cryptocurrencies Bitcoin, DASH, ZCash, and Monero involve illegal purchases, the same release claims that the anonymity permitted by some of these transaction networks, “has led them to become a preferred financial payment method for illicit activities.”
The release also states that:
“Virtual currencies have become a prominent method to pay for goods and services associated with illegal sex and drug trafficking, which are two of the most detrimental and illegal activities facilitated by online marketplaces and the dark web.”
Also included are claims from the Drug Enforcement Administration’s (DEA’s) 2017 National Drug Assessment:
“…(T)ransnational criminal organizations are increasingly using virtual currencies for illicit activities, including drug trafficking.”
Crypto payment networks may also be a factor in the opioid crisis, the release claims:
“It has also been reported that virtual currencies are being used to run illegal online marketplaces to sell drugs, including the opioid, fentanyl, and contributing to the opioid crisis in America.”
The Bill has now been forwarded to the Senate Banking Committee for review.