Cryptocurrency could be the new best friend for SA kidnappers to extort ransom money. The Star reports this is according to Institute for Security Studies’ Lizette Lancaster, who said the lack of regulation posed a huge challenge as transactions were extremely difficult to monitor.

Last month, kidnappers who snatched a Mpumalanga boy (13) demanded cryptocurrency, in the form of 15 bitcoin, which would have resulted in the parents having to fork out more than R1.2m. Given the popular nature of cryptocurrencies, it was only a matter of time before criminal networks latched on to this and some cryptocurrencies were created to facilitate criminal activities, Lancaster said.

‘It is almost impossible to track where the money is going,’ she said.

This was not something new, but this had been happening frequently in South America, she noted. Lancaster said regulations were needed to protect consumers and that some governments, like the US, were making progress in regulating cryptocurrencies.

Full report in The Star