The Role of Socio-Political Factors in Shaping Illicit Digital Platforms: A Comparative Analysis of Latin America and Europe

This paper examines the intersection of digital technologies, drug markets, and socio-political factors in Latin America by analysing the proliferation of illicit digital platforms, particularly cryptomarkets, within this context. Cryptomarkets, which facilitate the encrypted trade of illicit drugs, are inherently political significant as they systematically circumvent drug control policies while serving profit-driven aims. These platforms not only shape governance frameworks and societal norms but also influence public perceptions of security and legitimacy. While organisational dynamics of cryptomarkets have been extensively studied in the Global North, where they are well-established, their role in the Global South – specifically Latin America – remains underexplored. By comparing the development of cryptomarkets in Europe and Latin America, this paper examines why such platforms flourish in some regions while remaining limited in others. It assesses socio-political, economic, and infrastructural factors influencing the emergence and growth of cryptomarkets. The analysis explores key factors such as drug control policies, the evolution of drug markets, law enforcement interventions, the regulation of digital financial infrastructure, trust in digital technologies, and the reliability of public services, such as postal systems, which are crucial for the operational success of these platforms. The paper pays particular attention to Latin America, a region historically associated with the cultivation and production of illicit drugs, to understand how it engages with digital illicit markets. Through this lens, the study explores how regional conditions – including social inequality, political instability, and weak institutional frameworks – hinder the proliferation of cryptomarkets compared to their rapid expansion in Europe. This research contributes to a broader understanding of cryptomarkets as socio-technological phenomena, emphasising their societal and regulatory implications in Latin America and other regions in the Global South. It argues that addressing the spread of illicit digital markets in Latin America necessitates a nuanced approach that situates cryptomarkets within their specific political, economic, and structural contexts. Ultimately, the paper provides valuable insights into how digital technologies intersect with regional politics, offering a foundation for policy discussions on governance, security, and the regulation of illicit markets in Latin America.