Here we go again?
The Swedish Daily News (via the International Business Times) reported Monday that bitcoin (BTC) was used by drug dealers in at least six transactions throughout last year. Sources say that most of the drug trades were performed on the Internet, a piece of news that could add fuel to the fire of Swedish law and banking authorities against bitcoin.
In December, four individuals were convicted for drug smuggling in Haparanda when police discovered a large amount of bitcoins in the main suspect’s computers. Approximately 100 transactions took place.
The Stockholm newspaper reported that half a million Swedish kronor ($77,000) was handled by the individual. The entire process was independent from financial institutions since bitcoin used cryptography to control the deals between the users.
This isn’t the only Swedish case to involve the digital currency. The National Criminal Investigation Department’s cybercrimes unit revealed that there have been several cases that have included bitcoin usage by suspects and convicted criminals.
We reported last month that the Swedish central bank announced that it would not classify the cryptocurrency as a legitimate currency. Instead, banking officials said it would treat bitcoin as an asset and would be subject to capital gains taxes, much like antiques, arts and stamps.
Despite bitcoin previously being associated with criminal acts and claims that criminals can utilize virtual currencies for money laundering schemes and drug transactions, proponents argue that it is not competition to cash when used in illicit business.
Last month, Charlie Shrem, millionaire co-founder of BitInstant, was arrested on money laundering charges. Prosecutors allege that Shrem and Robert Faiella, a Silk Road user, conspired to supply bitcoiners to users of the initial Silk Road marketplace.
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