EU agency calls for stronger identity checks on crypto exchanges to combat darknet drug trade

In a report titled ‘Cryptocurrencies and drugs: Analysis of cryptocurrency use on darknet markets in the EU and neighbouring countries‘ the European Monitoring Centre for Drugs and Drug Addiction has called for stronger identity checks on cryptocurrency exchange users to combat the use of darknet marketplaces for purchasing illegal substances.

The report suggests that improved police training may be more effective than outright bans and highlights the persistent rise of darknet activity despite enforcement efforts. The study advises implementing the recommendations from the Financial Action Task Force to identify users who cash out illegal gains. It also emphasizes the need for law enforcement to receive training in encrypted platform usage and crypto tracing and seizure. Additionally, the paper discusses the dynamic legal landscape that governs the use of cryptocurrencies in some countries.