This paper examines the role of digital technologies in the emergence and proliferation of cryptomarkets – digital platforms governed by private actors that facilitate the encrypted trade of illicit drugs. Existing research on cryptomarkets has largely centred on their internal social and organisational dynamics of these platforms, often overlooking how digital technologies shape and are shaped by power structures, governance, and societal developments. Empirical evidence demonstrates that cryptomarkets thrive in the Global North, serving profit-driven goals while systematically circumventing regulatory control policies, yet they remain underdeveloped in the Global South.
This paper adopts a political-economic perspective to explore the interplay of macro and micro conditions shaping the cryptomarket ecosystem. It focusses on online drug markets in Europe in comparison to Latin American, a region traditionally associated with drug cultivation and production. The paper investigates why cryptomarkets proliferate in Europe but have a limited presence in Latin American countries, by focusing on various political-economic factors including the development of drug markets in each region, the risk of law enforcement intervention, fintech payment systems regulation, trust in digital technologies, and the reliability of infrastructures like postal services.
By connecting actors, infrastructures, and broader societal conditions shaping these digital illicit markets, the paper contributes to a deeper understanding of cryptomarkets as a global phenomenon. It argues that addressing illicit online drug activities require a nuanced approach that considers the political economy of cryptomarkets within their societal and regulatory contexts. Ultimately, this research provides insights for policymakers seeking to develop more effective strategies to address the challenges posed by online drug markets.