Drug related cybercrime and associated use of the Internet, 2013

Overview, analysis and possible actions by
the Pompidou Group
Co-operation Group to Combat Drug Abuse and Illicit trafficking in Drugs
P-PG / (2013)4
Drug related
cybercrime and
associated use of the
Internet
&RRSHUDWLRQ*URXSWR&RPEDW'UXJ$EXVH
DQGLOOLFLWWUDIILFNLQJLQ'UXJV
33*
Drug related cybercrime and associated use of the Internet
Overview, analysis and possible actions by the Pompidou Group
1 Executive summary
$FFRUGLQJWRYDULRXVVRXUFHVWKHRQOLQHWUDGHRIGUXJVLVJURZLQJIDVW5HFHQWGHYHORSPHQWVLQZHE
WHFKQRORJLHVKDYHHQDEOHGWKHHPHUJHQFHRIDQHZJOREDORQOLQHEODFNPDUNHWIRULOOHJDOVXEVWDQFHV
1HZDQRQ\PRXVPDUNHWSODFHVVXFKDV6LON5RDGDQG%ODFN0DUNHW5HORDGHGPDUNDSDUDGLJPVKLIW
LQKRZGUXJFULPHVDUHFRPPLWWHGWRGD\,OOHJDOVXEVWDQFHVDUHRIIHUHGRSHQO\EXWWKHUHLVQRZD\WR
VWRSSLQJLWRUWRLGHQWLI\LQJWKHRQHVLQYROYHGLQWKHFULPLQDODFWLYLW\/DZHQIRUFHPHQWDXWKRULWLHVDUH
DZDUHRIWKHSKHQRPHQRQEXWDUHVWUXJJOLQJWRILQGWKHHIIHFWLYHPHDQVWRWDFNOHLW
7KHUHLVDFOHDUDQGRXWVSRNHQQHHGIRUVKDULQJEHVWSUDFWLFHDQGIRUWKHFRRUGLQDWLRQRILQWHUYHQWLRQV
DJDLQVWWKHGUXJWUDGHLQDQRQ\PRXVQHWZRUNV7KH3RPSLGRX*URXS±WKURXJKLWVZLGHJHRJUDSKLFDO
DQG WDUJHW JURXS RXWUHDFK PXOWLGLVFLSOLQDU\ DSSURDFK DV ZHOO DV HVWDEOLVKHG QHWZRUNV DQG WKH
FDSDELOLW\RIFUHDWLQJQHZRQHV±LVLQDJRRGSRVLWLRQWRDFWDVDVDIDFLOLWDWRUIRUDQHWZRUNRIH[SHUWV
DQGSURIHVVLRQDOVZRUNLQJWRWDFNOHWKHJURZLQJQHZWUHQG
&KDSWHUWZRORRNVDWGLIIHUHQWZD\VGUXJVDUHVROGRYHUWKH,QWHUQHWWRGD\KDYLQJDVSHFLILFIRFXVRQ
DQRQ\PRXV QHWZRUNV &KDSWHU WKUHH SUHVHQWV D UHYLHZ RI H[LVWLQJ DFWLYLWLHV UHODWHG WR RQOLQH GUXJ
WUDGH LQ VHOHFWHG LQWHUQDWLRQDO DQG QDWLRQDO RUJDQLVDWLRQV &KDSWHU IRXU DQDO\VHV SRLQWV RI
LQWHUYHQWLRQ )LQDOO\ FKDSWHU ILYH VXPPDULVHV WKH ILQGLQJV DQG JLYHV UHFRPPHQGDWLRQV IRU IXWXUH
DFWLYLWLHV
Contents
(;(&87,9(6800$5<
,1752'8&7,21
&\EHUFULPHRQWKHULVH
:KDWKDVWKH,QWHUQHWGRQHWRGUXJVXSSO\"
$QRQ\PLW\WRGHFUHDVHULVN
1HZFKDQQHOVIRUWUDIILFNLQJ
$QHHGIRULQQRYDWLYHDSSURDFKHV
2YHUODSSLQJWKHPHV
'(6&5,37,212)7+(23(5$7,21$/(19,5210(17
+RZDUHSV\FKRDFWLYHVXEVWDQFHVVROGLQWKH,QWHUQHW
3XEOLFLQWHUQHW
$QRQ\PRXVQHWZRUNV
&DVHVWXG\6LON5RDG
1HZSD\PHQWPHWKRGV
&DVHVWXG\%LWFRLQ
2YHUYLHZRIH[LVWLQJDFWLYLWLHV
$1$/<6,62)3266,%/(32,1762),17(59(17,216
&21&/86,216$1'5(&200(1'$7,216
*ORVVDU\RIWHUPV
$QRQ\PRXV QHWZRUNV'LIIHUHQWVXEQHWZRUNVRIWKH,QWHUQHWVXFKDV7RU)UHHQHWDQG,3LQVLGH
RIZKLFKWKHXVHUV¶LGHQWLWLHVDQGORFDWLRQVDUHPDVNHGDQGDOOWKHFRPPXQLFDWLRQLVHQFU\SWHG$OVR
UHIHUUHGWRDVWKH'DUNQHWRUWKH'DUN:HE6HHSIRUPRUHLQIRUPDWLRQ
$QRQ\PRXV QHWZRUNV FRQVLVW RI QRGHV ZKLFK DUH W\SLFDOO\ SLHFHV RI VRIWZDUH HJ ³7RU %URZVHU
%XQGOH´ UXQQLQJ RQ YROXQWHHULQJ LQGLYLGXDOV¶ FRPSXWHUV ,QIRUPDWLRQ LQ WKH DQRQ\PRXV QHWZRUNV LV
WUDQVPLWWHG WKURXJK FLUFXLWV ZKLFK DUH D VHULHV RI LQWHUFRQQHFWHG QRGHV 6HH S IRU PRUH
LQIRUPDWLRQ
3D\PHQWV IRU LOOHJDO SXUFKDVHV DUH LQFUHDVLQJO\ GRQH E\ XVLQJ YLUWXDO FXUUHQFLHV VXFK DV %LWFRLQ
%LWFRLQVDOORZIRUDQRQ\PRXVSHHUWRSHHUPRQH\WUDQVIHUVPDNLQJLWYLUWXDOO\LPSRVVLEOHWRIROORZWKH
WUDQVDFWLRQVRULGHQWLI\WKHKROGHUVRIWKHHOHFWURQLFPRQH\6HHSIRUPRUHLQIRUPDWLRQ
2 Introduction
&\EHUFULPH LV RQH RI WKH IDVWHVW JURZLQJ IRUPV RI FULPLQDOLW\ WRGD\ *OREDOO\ LWV SURILWV KDYH
VXUSDVVHG WKRVH RI WKH LQWHUQDWLRQDO LOOHJDO GUXJ EXVLQHVV DQG LWV HVWLPDWHG FRVWV IRU LQGLYLGXDOV
FRUSRUDWHV DQG VRFLHWLHV UDQJH IURP ELOOLRQV XS WR RQH WULOOLRQ 86' 2UJDQLVHG FULPLQDO JURXSV DUH
LQFUHDVLQJO\XWLOLVLQJWKH,QWHUQHWLQWKHLUDFWLYLWLHV
7KH WRWDO VL]H RI WKH QHZ RQOLQH PDUNHW IRU SV\FKRDFWLYH VXEVWDQFHV LV XQNQRZQ EXW VHYHUDO
LQGLFDWRUV SRLQW RXW WKDW LW LV H[SDQGLQJ IDVW )RU H[DPSOH (0&''$ UHSRUWV WKDW WKH QXPEHU RI
ZHEVLWHV VHOOLQJ QHZ SV\FKRDFWLYH VXEVWDQFHV KDV GRXEOHG HYHU\ \HDU VLQFH UHDFKLQJ LQ
-DQXDU\ $OVR WKH QXPEHU RI QHZ VHOOHUV LQ 6LON 5RDG WKH SUHVXPDEO\ ELJJHVW DQRQ\PRXV
RQOLQHPDUNHWSODFHIRULOOHJDOGUXJVJURZVE\HYHU\PRQWK&XVWRPVUHSRUWRQLQFUHDVHGQXPEHU
RIGUXJVHL]XUHVGHOLYHUHGE\PDLODQGSUHVXPDEO\RULJLQDWLQJIURPRQOLQHPDUNHWSODFHV
$QRWKHU IHDWXUH RI WKH QHZ RQOLQH PDUNHW LV LWV LQFUHDVHG FDSDELOLW\ WR HYDGH ODZ HQIRUFHPHQW
LQWHUYHQWLRQVWKURXJKDQHQKDQFHGOHYHORIDQRQ\PLW\DQGHQFU\SWLRQ7KHFODQGHVWLQHVXEQHWZRUNV
RI WKH ,QWHUQHW RULJLQDOO\ GHYHORSHG IRU PLOLWDU\ SXUSRVHV DQG JHQHUDOO\ NQRZQ DV WKH 'DUNQHW IRUP
WKHWHFKQRORJLFDOSODWIRUPIRUQHZRQOLQHPDUNHWSODFHVIRUGUXJV
2QWKHPDUNHWSODFHVORFDWHGLQWKH'DUNQHWGUXJVDUHVROGRSHQO\EXWWKHLGHQWLWLHVDQGORFDWLRQVRI
WKH DFWRUV DV ZHOO DV WKH PDUNHWSODFH LWVHOI DUH PDVNHG 7KH PRVW VRSKLVWLFDWHG RQHV LQWHJUDWH
GLIIHUHQW DQRQ\PLVLQJ WHFKQRORJLHV DQG VHUYLFHV RIIHULQJ D FRQYHQLHQW DQG UHODWLYHO\ VHFXUH ZD\ WR
VHOO DQG EX\ LOOHJDO VXEVWDQFHV RQOLQH 7KH WHFKQRORJLHV RQ ZKLFK WKH PDUNHWSODFHV RSHUDWH DUH
FRQVWDQWO\GHYHORSHG
(YHQWKRXJKWKHRQOLQHPDUNHWRILOOHJDOVXEVWDQFHVLVVWLOODIUDFWLRQRIWKHWRWDOGUXJVPDUNHWLWVUDSLG
JURZWK DQG LQFUHDVLQJ FDSDELOLW\ WR FRQFHDO LWVHOI FDOO IRU VSHFLILF DWWHQWLRQ ,Q DQ LQWHUYLHZ IRU WKLV
VWXG\ 0U-RKQ&DUUD6HQLRU([SHUW$GYLVHUWRWKH 8QLWHG1DWLRQV,78DQGDQ([SHUW $GYLVHUWR
WKH(XURSHDQ8QLRQ(XURSHDQ1HWZRUNDQG,QIRUPDWLRQ6HFXULW\$JHQF\GHVFULEHGWKHDQRQ\PRXV
QHWZRUNVDV³KXJHO\VLJQLILFDQW´IRUWRGD\¶VFULPHSUHYHQWLRQ
&ULPLQDOV LQ HIIHFW KDYH WKH FDSDELOLW\ RI SXWWLQJ D JUHDW GHDO RI WKH HYLGHQFH RI WKHLU FULPHV
EH\RQG WKH HIIHFWLYH UHDFK RI ODZ HQIRUFHPHQW 6WURQJ HQFU\SWLRQ LV DV \HW XQEUHDNDEOH IRU DOO
SUDFWLFDOSXUSRVHVDQGLWLVFHUWDLQO\XQEUHDNDEOHLQWKHFRQWH[WRIURXWLQHSROLFHRSHUDWLRQV
7KH RQOLQH PDUNHW LV H[WUHPHO\ JOREDO E\ QDWXUH IDFLOLWDWLQJ WKH VSUHDG RI QHZ GUXJV DQG GUXJ
FXOWXUHV 0U &DUU FRQFOXGHV WKDW WKH 'DUNQHW UHSUHVHQWV QRWKLQJ OHVV WKDQ D SDUDGLJP VKLIW LQ WKH
ZRUOGRIFULPH
7KLVGRFXPHQWSURYLGHVDQRYHUYLHZRIDQGDQDO\VLVWKHFXUUHQWGHYHORSPHQWVLQWKHVXSSO\RILOOHJDO
VXEVWDQFHVLQWKH,QWHUQHWDQGUHVSRQVHVWRFRXQWHUDFWWKHVHWKDWDUHXQGHUZD\6SHFLILFDWWHQWLRQLV
SDLGWRRQOLQHPDUNHWSODFHVLQWKH'DUNQHW7KHSULPDU\DQJOHRIWKLVDQDO\VLVLVVXSSO\UHGXFWLRQEXW
SHUVSHFWLYHVRIGHPDQGDQGKDUPUHGXFWLRQDUHJLYHQZKHUHDSSURSULDWH
&\EHUFULPHRQWKHULVH
,QWHUSRO LQWURGXFHV F\EHUFULPH DV RQH RI WKH IDVWHVW JURZLQJ DUHDV RI FULPH )%,¶V ,QWHUQHW &ULPH
&RPSODLQW &HQWUH¶V,&FRPSODLQWVWDWLVWLFVVKRZD VWHDG\JURZLQJWUHQGDQG 6\PDQWHFUHSRUWVD
LQFUHDVHLQZHEDWWDFNVIURPWR
7KHHVWLPDWHVRIWKHILQDQFLDOLPSDFWRIF\EHUFULPHYDU\DORWUDQJLQJIURPELOOLRQVXSWRRQHWULOOLRQ
86GROODUV7KHQXPEHUVDUHXQFHUWDLQDQGSUREDEO\H[DJJHUDWHGWRVRPHH[WHQW:KDWHYHUWKHUHDO
ILJXUHF\EHUFULPHLVSHUFHLYHGDVRQHRIWKHPRVWSURPLQHQWWKUHDWVWRVRFLHWLHVWRGD\)RUH[DPSOH
WKH VWDUW RI (XURSRO¶V (XURSHDQ &\EHUFULPH &HQWUH (& LQ -DQXDU\ LV D FOHDU VLJQDO RI WKH
JURZLQJLPSRUWDQFHRIF\EHUVHFXULW\WRWKHYHU\FRPSHWLWLYHQHVVRIWKH(8
7KHRQOLQHPDUNHWRILOOHJDOJRRGVLQFOXGLQJQDUFRWLFVLVW\SLFDOO\QRWPHQWLRQHGLQWKHGHILQLWLRQVRI
F\EHUFULPH7KH&\EHUVHFXULW\6WUDWHJ\RIWKH(XURSHDQ8QLRQIRULQVWDQFHUHIHUVWRF\EHUFULPHDV
DEURDGUDQJHRIGLIIHUHQWFULPLQDODFWLYLWLHVZKHUHFRPSXWHUVDQGLQIRUPDWLRQV\VWHPVDUHLQYROYHG
HLWKHU DV D SULPDU\ WRRO RU DV D SULPDU\ WDUJHW &\EHUFULPH FRPSULVHV WUDGLWLRQDO RIIHQFHV HJ
IUDXG IRUJHU\ DQG LGHQWLW\ WKHIW FRQWHQWUHODWHG RIIHQFHV HJ RQOLQH GLVWULEXWLRQ RI FKLOG
SRUQRJUDSK\ RU LQFLWHPHQW WR UDFLDO KDWUHG DQG RIIHQFHV XQLTXH WR FRPSXWHUV DQG LQIRUPDWLRQ
V\VWHPVHJDWWDFNVDJDLQVWLQIRUPDWLRQV\VWHPVGHQLDORIVHUYLFHDQGPDOZDUH
,17(532/¶VDQG (XURSRO¶VGHILQLWLRQV RIF\EHUFULPHDUH YHU\VLPLODULQFRQWHQWDQG GRQRWUHIHUWR
WKHRQOLQHGUXJPDUNHW7KHLPSRUWDQFHRIGUXJVLQWKHSROLWLFDODJHQGDERWKLQ(XURSHDQGEH\RQG
KDVGHFUHDVHGLQLPSRUWDQFHRYHUWKHSDVWGHFDGHVDSKHQRPHQRQZKLFKLVFOHDUO\UHIOHFWHGLQWKH
FXUUHQW VWUDWHJ\ RI WKH (XURSHDQ 8QLRQ 2QH RI WKH 8QLRQ¶V VHYHQ IODJVKLS LQLWLDWLYHV LV WKH 'LJLWDO
$JHQGDIRU(XURSH1RQHRILWVVHYHQ3LOODUVRU$FWLRQVUHODWHVWRGUXJVLQFOXGLQJWKH3LOODU³7UXVW
DQG6HFXULW\´
(YHQ WKRXJK WKH LPSRUWDQFH RI GUXJV LQ WKH VSKHUH RI F\EHUFULPH LV FXUUHQWO\ ORZ WKH UHOHYDQFH RI
F\EHUFULPHLQWKHGUXJPDUNHWLVJURZLQJDQGGHVHUYHVVSHFLDODWWHQWLRQ
:KDWKDVWKH,QWHUQHWGRQHWRGUXJVXSSO\"
&\EHUFULPH LV H[WUHPHO\ LQQRYDWLYH E\ QDWXUH SRVLQJ D VHULRXV FKDOOHQJH WR WKH H[LVWLQJ ODZ
HQIRUFHPHQW PHWKRGV 7KH ,QWHUQHW SURYLGHV VHYHUDO DGYDQWDJHV WR WKH VXSSO\ RI FRQWUROOHG
VXEVWDQFHV
,WLVDFRVWHIIHFWLYHZD\WRSURPRWHDQ\LGHDRUSURGXFWRQDJOREDOVFDOH8QOLPLWHGE\WLPH
DQGVSDFHWKH,QWHUQHWUHDFKHVDQGFRQQHFWVSHRSOHDQGFXOWXUHVIDFLOLWDWLQJWKHIDVWVSUHDG
RI QHZ SURGXFWV DQG WUHQGV HYHU\ZKHUH RQ WKH SODQHW 1HZ GUXJV DQG ZD\V RI XVLQJ DQG
SURGXFLQJWKHPDUHQRH[FHSWLRQ
7KHQHZLQIRUPDWLRQDQGFRPPXQLFDWLRQWHFKQRORJLHV,&7RIIHUSRZHUIXOWRROVIRURSHUDWLQJ
DQRQ\PRXVO\ DQG IRU SUHYHQWLQJ WKLUG SDUWLHV IURP LQWHUFHSWLQJ FRQILGHQWLDO FRPPXQLFDWLRQ
7KLVLQFOXGHVQRWRQO\FRPPXQLFDWLRQEHWZHHQLQGLYLGXDOVDQGJURXSVEXWDOVRWKHRSHUDWLQJ
RIPDUNHWSODFHVDQGVHOOLQJRIGUXJVDQRQ\PRXVO\
7KH,QWHUQHWLVDFRQVWDQWO\HYROYLQJHFRV\VWHPRILGHDVWHFKQRORJLHVDQGEXVLQHVVHV7KH
YHU\ QDWXUH RI WKH ZLUHG ZRUOG HQVXUHV WKDW QHZ LQQRYDWLYH ZD\V RI VXSSO\LQJ LOOLFLW GUXJV DQGHYDGLQJWKHODZHQIRUFHPHQWDXWKRULWLHVZLOOFRQWLQXHWRGHYHORS
$V D UHVXOW D YLUWXDO EXW UHDO DQRQ\PRXV DQG JOREDOO\ RSHUDWLQJ EODFN PDUNHW RI LOOLFLW JRRGV DQG
VHUYLFHVKDVHPHUJHG7KHPRVWDGYDQFHGYHUVLRQVDUHFRPELQLQJPDQ\RIWKHH[LVWLQJWHFKQRORJLHV
DQGRQOLQHVHUYLFHVLQRUGHUWRSURYLGHWKHLUFXVWRPHUVDVPRRWKDQGVHFXUHSODWIRUPIRUVKRSSLQJQRW
RQO\GUXJVEXWDUPVVWROHQJRRGVLOOLFLWVHUYLFHVHWF
$QRQ\PLW\WRGHFUHDVHULVN
7KH WHFKQLFDO EXLOGLQJ EORFNV IRU D FRPSOHWHO\ XQWUDFHDEOH SURFHVV RI GRLQJ EXVLQHVV RQ LOOHJDO
VXEVWDQFHV KDYH EHHQ LQ SODFH IRU D VHYHUDO \HDUV EXW KDYH EHHQ SXW WRJHWKHU DQG XWLOLVHG LQ D IXOO
VFDOHRQO\TXLWHUHFHQWO\7KHQHZGHYHORSPHQWVSXWODZHQIRUFHPHQWDXWKRULWLHVLQDVLWXDWLRQZKHUH
WKH\FDQVHHWKHFULPLQDODFWLYLW\WRWDNHSODFHEXWKDYHYHU\IHZPHDQVDQGRIWHQOLPLWHGUHVRXUFHV
WRLQWHUFHSWLW
)RU H[DPSOH WKH ORFDWLRQ SK\VLFDO DQG YLUWXDO RI DQ RQOLQH GUXJ PDUNHWSODFH LV W\SLFDOO\ KLGGHQ
ZKLFKPDNHVLWYLUWXDOO\ LPSRVVLEOHWRFORVHLWGRZQ $WWKHVDPHWLPHDOOORFDWLRQVDQG LGHQWLWLHVRI
EX\HUVDQGVHOOHUVKDYHEHHQPDVNHGDQGDOOWKHGLUHFWFRPPXQLFDWLRQEHWZHHQWKHPLVHQFU\SWHG
7KLV PHDQV WKDW JHWWLQJ DQ\ LQIRUPDWLRQ DERXW ZKR RU ZKHUH WKH VXVSHFWV DUH RU ZKDW WKH\ DUH
EX\LQJ LV SUDFWLFDOO\ LPSRVVLEOH:KDW¶V PRUH WKH ,QWHUQHW SURYLGHV DQRQ\PRXV ZD\V WR SD\LQJ IRU
WKHLOOLFLWSXUFKDVHVVHHIRUPRUH
7KLV UHGXFHV WKH ULVN RI WKH DJHQWV RQ WKH PDUNHWV WR JHW FDXJKW DQG VXEVHTXHQWO\ LQFUHDVHV WKH
DWWUDFWLYHQHVVRIHQJDJLQJLQWKHLOOLFLWDFWLYLW\
1HZFKDQQHOVIRUWUDIILFNLQJ
7KHYLUWXDO DQGJOREDOGLVWULEXWLRQ RIGHPDQG DQGVXSSO\ KDV OHGWR D SDUWLDOUHDUUDQJHPHQWRIGUXJ
WUDIILFNLQJ 7KH RUGHUV IURP RQOLQH PDUNHWSODFHV DUH W\SLFDOO\ VPDOO LQ VL]H DQG GHOLYHUHG WKURXJK
SRVWDORUFRXULHUVHUYLFHV7KHVHQGHUPD\SDFNWKHGUXJVLQ YDFXXPVHDOHGEDJVWRGLVWUDFWVQLIIHU
GRJVDQGXVHHQYHORSHVZLWKFRPSDQ\ODEHOVWRPDNHWKHVKLSPHQWORRNOHVVVXVSLFLRXV
7KHEX\HUPD\EHWKHHQGXVHURIWKHSURGXFWRUDGHDOHUZKRLVSXUFKDVLQJQDUFRWLFVWREHGHOLYHUHG
WR WKH ORFDO PDUNHW 7KH GHDOHU PD\ GLVWULEXWH WKH ULVN E\ RUGHULQJ WKH VXEVWDQFHV LQ VPDOOHU
VKLSPHQWVDQGWRPXOWLSOHORFDWLRQV
$QHHGIRULQQRYDWLYHDSSURDFKHV
7KHQHZDYHQXHVIRUGUXJVXSSO\WKURXJKRQOLQHPDUNHWSODFHVDQGWRGRRUGHOLYHU\FDOOIRUQHZDQG
LQQRYDWLYH DSSURDFKHV RI ERWK VXSSO\ DQG GHPDQG UHGXFWLRQ 2Q WKH RQOLQH PDUNHWSODFH WDFWLFV RI
SXEOLFSUHVHQFHLQWHOOLJHQFHDQGLQILOWUDWLRQKDYHWREHUHGHVLJQHG
,Q FXVWRPV DQG GHOLYHU\ VHUYLFHV LPSURYLQJ WKH PRQLWRULQJ RI PDLO GHOLYHULHV DOO WKH ZD\ IURP
UHFHLYLQJWKHVKLSPHQWWRGHOLYHULQJLWWROHWWHUER[PD\EHDYLDEOHWDFWLFV,QDGGLWLRQWKHGLVFXVVLRQ
DUHDV RI WKH PDUNHWSODFHV DUH D ZD\ WR PHHW WKH EX\HUV DQG WR PDNH VXUH WKH\ NQRZ WKH ULVNV
LQYROYHGDQGZKHUHWRJHWWUHDWPHQW
-XVWDVWKHGUXJEXVLQHVVLVJOREDOWKHSUHYHQWLRQDOVRQHHGVDJOREDODSSURDFK&RRSHUDWLRQPXWXDO
VXSSRUWDQGVKDULQJRILQIRUPDWLRQDQGEHVWSUDFWLFHZLOOEHQHHGHGEHWZHHQGLIIHUHQWDFWRUV
3RVVLEOHLQWHUYHQWLRQVZLOOEHPRUHGLVFXVVHGLQGHSWKLQ
2YHUODSSLQJWKHPHV
6HYHUDORWKHULVVXHVFRLQFLGHZLWKRQOLQHGUXJPDUNHWV
0DQ\RIWKH'DUNQHWZHEVLWHVVHOOLQJGUXJVDOVRRIIHURWKHULOOHJDOJRRGVOLNHDUPVDQGVWROHQ
JRRGV
7KH 'DUNQHW DOVR SURYLGHV D IRUXP IRU SODQQLQJ FULPHV DQG D FKDQQHO IRU GLVWULEXWLQJ
PDWHULDOVUHODWHGWRFKLOGDEXVHDQGWHUURULVP
7KHPRUHDGYDQFHGPDUNHWSODFHVRIIHUSD\PHQWPHWKRGVWKH%LWFRLQIRULQVWDQFHVHH ZKLFKDUHXVHIXOPHDQVIRUPRQH\ODXQGHULQJDQGDYRLGLQJWD[HV
$Q\ LQWHUYHQWLRQ WDUJHWHG DJDLQVW RQOLQH GUXJ PDUNHWSODFHV LV OLNHO\ WR FRPH DFURVV ZLWK WKH
DERYHPHQWLRQHGSKHQRPHQD
3 Description of the operational environment
+RZDUHSV\FKRDFWLYHVXEVWDQFHVVROGLQWKH,QWHUQHW
7KHUHDUHEDVLFDOO\WKUHHZD\VRIVHOOLQJSV\FKRDFWLYHVXEVWDQFHVLQWKH,QWHUQHW
,QGLYLGXDOVVHOOLQJRQGLVFXVVLRQIRUXPV
2QOLQHVWRUHIURQWVRSHUDWHGE\RQHLQGLYLGXDORUJURXSRILQGLYLGXDO
2QOLQH PDUNHWSODFHV FRQQHFWLQJ EX\HUV DQG VHOOHUV EXW QRW QHFHVVDULO\ VHOOLQJ DQ\WKLQJ
WKHPVHOYHV
7KHILUVWW\SHLVPRUHOLNHO\WREHIRXQGLQWKH'DUNQHW
RU RWKHU UHVWULFWHG VLWHV ZKHUHDV VWRUHIURQWV DQG
PDUNHWSODFHVRIIHULQJSV\FKRDFWLYHVXEVWDQFHVFDQEH
IRXQGLQERWKRSHQDQGDQRQ\PRXVQHWZRUNV
3XEOLFLQWHUQHW
'UXJV
,OOHJDO GUXJV FDQ EH IRXQG RQ VDOH RQ FHUWDLQ RQOLQH
PDUNHWSODFHVRIWHQRSHUDWLQJIURP&KLQDRU,QGLD)RU
H[DPSOH 7UDGHWWFRP VHOOV EDVLFDOO\ DQ\WKLQJ
LQFOXGLQJGUXJVGUXJSUHFXUVRUVDQGXQFRQWUROOHGQHZ
SV\FKRDFWLYHVXEVWDQFHV
7KH VHOOHUV RIWHQ SURPLVH ³GLVFUHHW GHOLYHU\´ EXW RQO\
GLVFORVH SD\PHQWDQGVKLSSLQJWHUPVZKHQFRQWDFWHG
WKURXJKDQHPDLODGGUHVVRUFRQWDFWIRUP
'UXJSUHFXUVRUV
'UXJ SUHFXUVRUV DUH FKHPLFDOV XVHG LQ WKH
PDQXIDFWXULQJ RI FRQWUROOHG RU LOOHJDO GUXJV 7KH
FKHPLFDOV KRZHYHU DUH ZLGHO\ XVHG LQ WKH FKHPLFDO
LQGXVWU\ WR SURGXFH D ZLGH YDULHW\ RI GLIIHUHQW
OHJLWLPDWHSURGXFWVUDQJLQJIURPSODVWLFVWRFRVPHWLFV
0RVWGUXJSUHFXUVRUVDUHFRQWUROOHGE\DXWKRULWLHV
'UXJ SUHFXUVRU FKHPLFDOV FDQ EH IRXQG RQ VDPH
PDUNHWSODFHV DV LOOHJDO GUXJV 6HOOLQJ DQRQ\PRXVO\
RQOLQH LV DOVR D ZD\ WR ZRUN DURXQG WKH SUHH[SRUW
QRWLILFDWLRQV\VWHP
,Q DGGLWLRQ WKH ,QWHUQHW KRVWV D UDQJH RI VWRUHIURQWV
RIIHULQJFDQQDELVVHHGVDQGSURGXFWLRQHTXLSPHQW
1HZSV\FKRDFWLYHVXEVWDQFHV
6HOOHUV RI QHZ SV\FKRDFWLYH VXEVWDQFHV H[SORLW
ORRSKROHV LQ FXUUHQW OHJLVODWLRQV DV ZHOO DV GLIIHULQJ
FODVVLILFDWLRQV LQ GLIIHUHQW FRXQWULHV 5HFHQWO\ DERXW
QHZ XQFRQWUROOHG SV\FKRDFWLYH VXEVWDQFHV KDYH
HQWHUHG WKH PDUNHW HYHU\ \HDU ZLWK OHJLVODWLRQ IDOOLQJ
EHKLQG0RVWRIWKHQHZSV\FKRDFWLYHVXEVWDQFHVDUH
VROGRQOLQH
(0&''$ KDV UHSRUWHG D GUDPDWLF LQFUHDVH LQ WKH
QXPEHU RI ZHEVLWHV VHOOLQJ QHZ SV\FKRDFWLYH
VXEVWDQFHV ,Q -DQXDU\ RQOLQH VKRSV ZHUH
LGHQWLILHG KDYLQJ PRUH WKDQ GRXEOHG VLQFH -DQXDU\
VKRSVDQGTXDGUXSOHGVLQFH-DQXDU\
VKRSV
+HURLQ±ZZZWUDGHWWFRP
&DQQDELVVHHGV±ZZZDPVWHUGDPPDULMXDQDVHHGVFRP
3VHXGRHSKHGULQH±ZZZWUDGHWWFRP
0'$,±ZZZOHJDOLLLVFRP
³/HJDO+LJKV+HUEDO+LJKV6WLPXODQWV$SKURGLVLDFV
DQGORDGVPRUH´±ZZZKHUEDOKLJKVFRP
³:HVSHFLDOL]HLQGLVFUHHWGHOLYHU\ZLWKGLIIHUHQWPHWKRGVDOOWKHWLPH2XUVXFFHVVIXOGHOLYHU\UDWHLVDQGZHJRWRDOO
PHDVXUHVWRPDNHVXUHZHSURWHFW\RXDVDEX\HU´$VHUYLFHSURPLVHE\DSVHXGRHSKHGULQHVHOOHULQZZZWUDGHWWFRP
3XUFKDVHVLQWKHRQOLQHVWRUHVFDQEHGRQHE\EDQNWUDQVIHUVDQGZRUOGZLGHPRQH\WUDQVIHUVHUYLFHV
VXFK DV:HVWHUQ 8QLRQ RU 0RQH\*UDP7KH VKLSPHQWV DUH GRQH WKURXJK JOREDOO\ RSHUDWLQJ FRXULHU
VHUYLFHV
3UHVFULSWLRQRQO\PHGLFLQHV
7KH DPRXQW RI PHGLFLQHV VROG RYHU WKH ,QWHUQHW KDV EHHQ RQ LQFUHDVH ,Q WKH 8QLWHG 6WDWHV IRU
H[DPSOHWKHQRQPHGLFDOXVHRISUHVFULSWLRQGUXJVH[FHHGVWKHXVHRIPRVWFRQWUROOHGVXEVWDQFHV
0DQ\RIWKHSKDUPDFLHVRSHUDWLQJRQOLQHVHOOXQDXWKRULVHGFRQWUROOHGVXEVWDQFHVERWKSUHVFULSWLRQ
RQO\ PHGLFLQHV DQG SURGXFWV WKDW DUH LOOHJDO LQ PDQ\ FRXQWULHV 7KH :RUOG +HDOWK 2UJDQL]DWLRQ
HVWLPDWHVWKDWRIPHGLFLQHVDYDLODEOHIURPVXFKZHEVLWHVDUHFRXQWHUIHLWFDXVLQJVHULRXVKHDOWK
ULVNVWRRQHVXVLQJWKHP,QWKH&RXQFLORI(XURSHGUDIWHGDFRQYHQWLRQZKLFKFRQVWLWXWHVIRU
WKHILUVWWLPHD ELQGLQJLQWHUQDWLRQDOLQVWUXPHQWLQWKHFULPLQDOODZILHOGRQFRXQWHUIHLWLQJRIPHGLFDO
SURGXFWVDQGVLPLODUFULPHVLQYROYLQJWKUHDWVWRSXEOLFKHDOWK
6LQFH ,17(532/ KDV ODXQFKHG D PXOWLSKDVH 2SHUDWLRQ 3DQJHD WR WDFNOH WKH SUREOHP RI
XQDXWKRULVHGRQOLQHSKDUPDFLHV,WVODWHVWSKDVH3DQJHD9ZDVRSHUDWHGEHWZHHQ6HSWHPEHU
DQG2FWREHUDQGUHVXOWHGLQWKHVKXWGRZQRIPRUHWKDQLOOHJDORQOLQHSKDUPDFLHV,Q
DGGLWLRQ SKDUPDFHXWLFDOV ZRUWK 86' PLOOLRQ ZHUH VHL]HG LQ WKH RSHUDWLRQ ZKLFK LQYROYHG ODZ
HQIRUFHPHQWFXVWRPVDQGUHJXODWRU\DXWKRULWLHVIURPFRXQWULHV
´+DSS\JDUGHQLQJ´PHSKHGURQHRQVDOHDWZZZVO\SODQWVFRP
$QRQ\PRXVQHWZRUNV
,Q WKH ,QWHUQHW WKHUH DUH VHYHUDO VXEQHWV FRQVLVWLQJ RI QRGHV UXQ E\
YROXQWHHUV7KLVVWXG\IRFXVHVRQ7RU7KH2QLRQ5RXWHUZKLFKLV WKHPRVW
SRSXODURIWKHP2WKHUZHOONQRZQDQRQ\PRXVQHWZRUNVDUH,3DQG)UHHQHW
7RU DOORZV IRU PDVNLQJ WKH LGHQWLWLHV DQG ORFDWLRQV RI XVHUV DGPLQLVWUDWRUV
DQG VHUYHUV PDNLQJ DOO FRPPXQLFDWLRQ DQG WUDQVDFWLRQV LQVLGH WKH QHWZRUN
YLUWXDOO\ DQRQ\PRXV DQG XQWUDFHDEOH :KLOH 7RU LV XVHG IRU D QXPEHU RI YDOXDEOH DQG OHJLWLPDWH
SXUSRVHV LW DOVR VHUYHV DV D SODWIRUP IRU D YLUWXDO EODFN PDUNHW IRU GUXJV DUPV DQG FKLOG
SRUQRJUDSK\,WDOVRRIIHUVYDULRXVIRUXPVIRUSODQQLQJRIFULPHVDQGWHUURULVWDFWV
7KHGHYHORSPHQWRI7RUQHWZRUNWHFKQRORJLHVVWDUWHGLQDVD861DY\SURMHFWZKLFKDLPHGDW
FUHDWLQJ PRUH VHFXUH FRPPXQLFDWLRQ QHWZRUNV )URP RQZDUGV LW KDV EHHQ GHYHORSHG DV DQ
RSHQVRXUFHSURMHFWIXQGHGE\(OHFWURQLF)URQWLHU)RXQGDWLRQ())
7KHSXUSRVHRIWKH7RUSURMHFWZZZWRUSURMHFWRUJLVWR
GHIHQG>,QWHUQHWXVHUV@DJDLQVWDIRUPRIQHWZRUNVXUYHLOODQFHWKDWWKUHDWHQVSHUVRQDOIUHHGRPDQG
SULYDF\ FRQILGHQWLDO EXVLQHVV DFWLYLWLHV DQG UHODWLRQVKLSV DQG VWDWH VHFXULW\ NQRZQ DV WUDIILF
DQDO\VLV
7RUQHWZRUNFDQEHDFFHVVHGZLWKVSHFLILFVRIWZDUHFDOOHG7RU%URZVHU%XQGOHRUWKH7RUFOLHQW,WLV
IUHHO\DYDLODEOHDWYDULRXVVLWHVLQFOXGLQJWKH7RU3URMHFWZHEVLWH$Q\RQHUXQQLQJ7RUFOLHQWRQKLVRU
KHU FRPSXWHU FDQ DOVR FRQILJXUH WKH VRIWZDUH WR IXQFWLRQ DV D 7RU QHWZRUN QRGH 7RU FOLHQWV IRUP
YLUWXDOFLUFXLWVFRQVLVWLQJRIWZRRUPRUH7RUQRGHVZKLFKUHOD\FOLHQWWUDIILFWRWKHGHVWLQDWLRQVHUYHU
7KH GDWD LV HQFU\SWHG PXOWLSOH WLPHV EHIRUH EHLQJ WUDQVPLWWHG RYHU WKH 7RU QHWZRUN VR WKDW WKH
RULJLQDO GDWD DUH DYDLODEOH RQO\ DW WKH H[LW QRGH WKH ODVW QRGH LQ WKH FLUFXLW 7KH VORZ VSHHG RI WKH
FRQQHFWLRQ DQG WKH QHHG WR LQVWDOO WKH 7RU FOLHQW DUH IDFWRUV WKDW FXUUHQWO\ FXUE WKH DGRSWLRQ RI 7RU
QHWZRUNLQODUJHUVFDOH
'DUNQHWPDUNHWSODFHV
$OOWKUHHZD\VWRVHOOGUXJV±LQGLYLGXDOVVWRUHIURQWVDQGPDUNHWSODFHV±DUHSUHYDOHQWLQWKH'DUNQHW
7KLV VHFWLRQ IRFXVHV RQ PDUNHWSODFHV DV WKH\ FRPSULVH FHUWDLQ IHDWXUHV ZKLFK PDNH WKHP ZRUWK
FORVHULQVSHFWLRQ
x
WKH\DUHWUXO\JOREDOLQWHUPVRIERWKVXSSO\DQGGHPDQG
x
WKHLUVDOHVYROXPHVDUHSUHVXPDEO\ELJJHUWKDQRIWKHRWKHUW\SHV
x
WKH\UHO\RQPRUHVRSKLVWLFDWHGEXVLQHVVPRGHOVDQGWHFKQRORJLHV
x
PHDQV WR LQWHUYHQH RQ PDUNHWSODFHV DUH DW OHDVW SDUWO\ WUDQVIHUDEOH WR WKH RWKHU W\SHV RI
VHOOLQJ
'DUNQHWKRVWVVHYHUDORQOLQHPDUNHWSODFHVIRUGUXJVDQGRWKHULOOHJDOJRRGV7KHEHVWNQRZQRIWKHP
LV 6LON 5RDG ZKLFK ZLOO EH GHVFULEHG LQ PRUH GHWDLO LQ WKH IROORZLQJ FDVH VWXG\ 2WKHU NQRZQ
PDUNHWSODFHVDUH%ODFN0DUNHW5HORDGHGDQGWKH*HQHUDO6WRUH
7\SLFDOIHDWXUHVRIWKH'DUNQHWPDUNHWSODFHVDUH
x
IRFXVRQLOOHJDOVXEVWDQFHV
x
PDVNHGLGHQWLWLHVDQGORFDWLRQVRIEX\HUVVHOOHUVDQGWKH RSHUDWRUVRIWKHPDUNHWSODFHDV
ZHOODVRIWKHPDUNHWSODFHLWVHOI
x
FRPELQDWLRQ RI GLIIHUHQW ZHE WHFKQRORJLHV DQG VHUYLFHV 7RU DQRQ\PLW\ QHWZRUN
PDUNHWSODFHLQWHUIDFHYLUWXDOFXUUHQF\VWURQJHQFU\SWLRQRISULYDWHPHVVDJLQJHWFLQWRRQH
RSHUDWLRQDOXQLW
x
%LWFRLQVDVPHWKRGRISD\PHQW
x
JOREDOGHOLYHU\WKURXJKSRVWDODQGFRXULHUVHUYLFHV
x
SXEOLFUDWLQJRIVHOOHUV
'DUNQHW PDUNHWSODFHV JHQHUDOO\ VHOO DOO NLQGV RI GUXJV EXW DOVR RWKHU NLQGV RI SURGXFWV VXFK DV
ZHDSRQVFRXQWHUIHLWSURGXFWVDQGOLWHUDWXUHDVZHOODVVHUYLFHVVXFKDVKDFNLQJ
1DWLRQDO'DUNQHWVLWHV
,Q DGGLWLRQ WR JOREDO PDUNHWSODFHV WKHUH DUH DOVR QDWLRQDO 'DUNQHW VLWHV VHUYLQJ WKH SXEOLF LQ WKHLU
RZQ ODQJXDJH ([DPSOHV RI VXFK ZHEVLWHV DUH WKH 5XVVLDQ ZHEVLWHV 5$03 5XVVLDQ $QRQ\PRXV
0DUNHW3ODFH KWWSUDPSERPENDGZYJ]RQLRQ 7RU EURZVHU EXQGOH UHTXLUHG DQG 6KRS RI 0DJLF
3URGXFWV KWWSRYDPDGNXPDUGLERQLRQ DV ZHOO DV WKH )LQQLVK LPDJHERDUG 7KRUODXWD
KWWS]TLLU\WDPXRJERQLRQ ,Q DGGLWLRQ WKH GLVFXVVLRQ ERDUG RI %ODFN 0DUNHW 5HORDGHG KDV
VXEVHFWLRQVIRUVHYHUDOQDWLRQDOLWLHV
&DVHVWXG\6LON5RDG
³+HUH¶V P\ SRLQW 6LON 5RDG LV DERXW VRPHWKLQJ PXFK
bigger than thumbing your nose at the man and getting
your GUXJVDQ\ZD\,W¶VDERXWWDNLQJEDFNRXUOLEHUW\DQG
RXUGLJQLW\DQGGHPDQGLQJMXVWLFH´
Dread Pirate Roberts, Founder of Silk Road
6LON5RDGLVWKHELJJHVWPRVWWHFKQRORJLFDOO\DGYDQFHGDQGEHVWNQRZQPDUNHWSODFHIRUGUXJV
LQ WKH 'DUNQHW SURYLGLQJ PDQ\ OHVVRQV WR EH OHDUQHG DERXW WKH RQOLQH GUXJ PDUNHW DQG LWV
GHYHORSPHQW
,QWURGXFWLRQ
6LON 5RDG LV RIWHQ UHIHUUHG WR DV WKH H%D\ RU $PD]RQ RI GUXJV ,WV 7RU QHWZRUN DGGUHVV LV
KWWSVLONURDGYESL]URQLRQ*RLQJWRWKHZHEVLWHUHTXLUHVWKH7RUFOLHQWWREHLQVWDOOHG7KHVLWH
KDVRSHUDWHGVLQFH)HEUXDU\DQGKDVUHFHLYHGDORWRIDWWHQWLRQHVSHFLDOO\LQWKH86DQG
$XVWUDOLD
6LON5RDGZDVEURXJKWWRSXEOLFDZDUHQHVVE\DQDUWLFOHLQ*DZNHUD1HZ<RUNEDVHGEORJLQ
-XQH +DYLQJ UHDG WKH VWRU\ VHQDWRUV &KDUOHV 6FKXPHU DQG -RH 0DQFKLQ XUJHG 86
$WWRUQH\*HQHUDO (ULF+ROGHU ´WR WDNH LPPHGLDWHDFWLRQDQGVKXWGRZQ WKH 6LON 5RDG QHWZRUN´
7KH ZHEVLWH LV VWLOO LQ RSHUDWLRQ DQG JURZLQJ LQ YROXPH 5HFHQWO\ LW ZDV KDV EHHQ WDUJHWHG E\
F\EHUDWWDFNVDQGKDVUDLVHGLWVFDSDFLW\WRUHVLVWDWWDFNVDFFRUGLQJO\
7KH RSHUDWRU RI 6LON 5RDG LV NQRZQ DV 'UHDG 3LUDWH 5REHUWV '35 +LV WUXH LGHQWLW\ UHPDLQV
XQNQRZQ +H LV DFWLYHO\ HQJDJHG LQ PDLQWDLQLQJ WKH ZHEVLWH DQG FRPPXQLFDWLQJ ZLWK WKH
FXVWRPHUV'35LVDILHUFHSURSRQHQWRIOLEHUDODQDUFKLVPDQGDEROLWLRQRIVWDWHFRQWURO
2SHUDWLRQ
3XUFKDVHVDW6LON5RDGDUHSDLGIRULQ%LWFRLQVDQXQWUDFHDEOHSHHUWRSHHU´FU\SWRFXUUHQF\´D
IRUPRIGLJLWDOHFRQRP\ RXWVLGH ODZ%LWFRLQVDUHH[FKDQJHDEOHWR QDWLRQDOFXUUHQFLHV DQGYLFH
YHUVD LQ GHGLFDWHG ZHE VHUYLFHV VXFK DV 0W *R[ PWJR[FRP $W 6LON 5RDG SD\PHQW WDNHV
SODFHWKURXJKV\VWHP¶VEXLOWLQHVFURZDFFRXQWZKHUHLWLVNHSWXQWLOWKHGHOLYHU\RIWKHSURGXFWV
KDVEHHQFRQILUPHG
7KH SURGXFWV DUH VKLSSHG E\ UHJXODU PDLO RU FRXULHU VHUYLFH WR DQ DGGUHVV JLYHQ E\ WKH EX\HU
3URGXFWV DUH W\SLFDOO\ VKLSSHG LQ YDFXXPVHDOHG EDJV PDNLQJ WKHP GLIILFXOW WR GHWHFW E\
VPHOOLQJ7KHGHOLYHU\LVRIWHQGLVJXLVHGLQUHDORUPDNHVKLIWFRPSDQ\HQYHORSHV
7KHPDUNHWSODFHIHDWXUHV DQDGYDQFHGIHHGEDFNV\VWHPWKHSXUSRVH RIZKLFK LVWREXLOGWUXVW
EHWZHHQEX\HUVDQGVHOOHUV)HHGEDFNLVDOZD\VJLYHQXSRQILQLVKLQJWKHSXUFKDVH7KHUDWLQJV
RIWKHVHOOHUVDUHSXEOLFWRWKHXVHUV
6LON5RDGKDVXVHUJXLGHVIRUEX\HUVDQGVHOOHUVSURPRWLQJDQRQ\PLW\DQGVHFXULW\7KHUXOHVRI
WKH VHUYLFH VWULFWO\ SURKLELW WKH PDUNHWLQJ RI ZHDSRQV FKLOG SRUQRJUDSK\ VWROHQ JRRGV
DVVDVVLQDWLRQV DQG VWROHQ SHUVRQDO LQIRUPDWLRQ 7KH SURGXFW OLVWLQJ RQ WKH VLWH LV UHJXODUO\
PRGHUDWHG
0DUNHWDQDO\VLV
$FFRUGLQJWRDPHDVXUHPHQWDQDO\VLVGRQHE\D'U1LFKRODV&KULVWLQIURP&DUQHJLH8QLYHUVLW\
LQ6LON5RDGEULQJVWRJHWKHUVRPHVHOOHUVDQGWKRXVDQGVHVWLPDWHGXSWREHWZHHQ
DQG RI FXVWRPHUV IURP DURXQG WKH ZRUOG $ERXW QHZ VHOOHUV UHJLVWHU RQ WKH
PDUNHWSODFHHDFKPRQWK
7KH DQQXDO WUDQVDFWLRQ LV HVWLPDWHG WR UHDFK 86' PLOOLRQ H[FOXGLQJ GHDOV FORVHG WKURXJK SULYDWH OLVWLQJV
FDOOHG´VWHDOWKOLVWLQJV´7KHRSHUDWRUVRIWKH ZHEVLWH
FROOHFWV DERXW 86' PLOOLRQ DV FRPPLVVLRQ IHHV
DQQXDOO\,QDQLQWHUYLHZIRUWKLVVWXG\'U&KULVWLQVDLG
WKH ZHEVLWH KDV JURZQ ³TXLWH D ELW´ VLQFH WKH HQG RI
GDWDFROOHFWLRQLQ-XO\
6HFXULW\LVVXHV
7KH ,3 DGGUHVVHV DQG FRQVHTXHQWO\ WKH SK\VLFDO
ORFDWLRQVRIVHOOHUVEX\HUVDQGWKHZHEVHUYHUDVZHOO $ERYH7RSPRVWIUHTXHQWVKLSSLQJRULJLQV
OHIWDQGDFFHSWDEOHVKLSSLQJGHVWLQDWLRQV
DVDOOWUDQVDFWLRQVDUHSURWHFWHGE\7RUDQRQ\PLW\DQG ULJKW%HORZ(YROXWLRQRIWKHQXPEHURIVHOOHUV
HQFU\SWLRQ /RJLQ ZLWK XVHUQDPH DQG SDVVZRUG LV 6RXUFH&KULVWLQ11RY
UHTXHVWHGXSRQHQWHULQJWKHVLWH
7KH VLWH IHDWXUHV ³VWHDOWK OLVWLQJV´ RI SURGXFWV ZKLFK
DUHQRWVKRZQLQWKHQRUPDO6LON5RDGOLVWLQJVRUOLQNHG
WRWKHVLWHDQGDUHRQO\DFFHVVLEOHWKURXJKGLUHFW85/
DGGUHVVHV 6WHDOWK OLVWLQJV DUH XVHG E\ EX\HUV DQG
VHOOHUV ZLWK HVWDEOLVKHG EXVLQHVV UHODWLRQVKLSV 7KH
FRQWHQW RI WKH VWHDOWK OLVWLQJV RU WKH YROXPH RI VDOHV
WKURXJKWKHPLVQRWNQRZQ
$ 'HOLYHU\ DGGUHVV LV JLYHQ WR WKH VHOOHU LQ 3*3
HQFU\SWHGPHVVDJHVDQGVXEVHTXHQWO\GHOHWHGIURPWKH6LON5RDG¶VGDWDEDVH
,QFRPLQJ %LWFRLQ SD\PHQWV DUH WDNHQ WKURXJK D FKDLQ RI GXPP\ LQWHUPHGLDULHV ´WXPEOHU´ WR
HQKDQFHDQRQ\PLW\7KHVLWHXVHVDPDQGDWRU\HVFURZV\VWHPWRSUHYHQWVZLQGOLQJDQGDKHGJH
DJDLQVWVKRUWWHUPIOXFWXDWLRQVRI%LWFRLQ
7KH WHFKQLFDO SODWIRUP LV FRQVWDQWO\ LPSURYLQJ DQG LQFUHDVLQJ LWV VHFXULW\ DQG 'UHDG 3LUDWH
5REHUWVKDVVWDWHGLQSXEOLFWKDWKHLVFRQILGHQWDERXW6LON5RDG¶VVHFXULW\PHDVXUHVDJDLQVWODZ
HQIRUFHPHQWWUDFNLQJDWWHPSWV
1HZSD\PHQWPHWKRGV
7KH,QWHUQHWKDVDOORZHGIRUWKHGHYHORSPHQWRIQHZNLQGVRISD\PHQWPHWKRGVZKLFKDUHDOVRXVHG
WRSD\IRUGUXJVERXJKWRQOLQH
6RPH RI WKHP IXQFWLRQ ZLWKLQ H[LVWLQJ HFRQRPLF V\VWHPV 3D\3DO EXW VRPH DUH LQGHSHQGHQW IURP
QDWLRQDO FXUUHQFLHV DQG FHQWUDO EDQNV EHLQJ YLUWXDO FXUUHQFLHV DOVR NQRZQ DV HOHFWURQLF PRQH\ RI
WKHLURZQULJKW9LUWXDOFXUUHQFLHVFDQEHEDVHGRQQDWLRQDOFXUUHQFLHVRUJROG:HEPRQH\H*ROGHU
3HFXQL[EXWVRPHRIWKHPDUHIUHHIORDWLQJ%LWFRLQ
6RPH RI WKH QHZ SD\PHQW PHWKRGV DUH DGPLQLVWHUHG E\ SULYDWH FRPSDQLHV VRPH DUH SHHUWRSHHU
FXUUHQFLHV WKH WUDQVDFWLRQV RI ZKLFK DUH GRQH GLUHFWO\ EHWZHHQ WZR LQGLYLGXDOV ZLWKRXW DQ\
LQWHUPHGLDU\7KHOLFLWXVHVIRUYLUWXDOFXUUHQFLHVDUHVWLOOTXLWHOLPLWHG7KH\DUHRIWHQXVHGEHFDXVHRI
WKHLUFDSDELOLW\WRUHWDLQWKHLUYDOXHJROGEDVHGRUDQRQ\PLW\SHHUWRSHHU
³7UDGLWLRQDO´QRQYLUWXDOPRQH\ WUDQVIHUPHWKRGVVXFKDV:HVWHUQ8QLRQRU 0RQH\*UDPKDYHDOVR
EHHQXVHGWRSD\LQJIRUGUXJVSXUFKDVHV
&DVHVWXG\%LWFRLQ
2I WKH QHZ SD\PHQW PHWKRGV %LWFRLQ %7& LV HVSHFLDOO\ LQWHUHVWLQJ
IRUVHYHUDOUHDVRQV)LUVWO\LWZDVWKHODVWPLVVLQJOLQNLQVHFXULQJIXOO
DQRQ\PLW\ LQ WKH SURFHVV RI EX\LQJ LQ WKH 'DUNQHW 6HFRQGO\ LW KDV
EHHQ ZLGHO\ DGRSWHG RQ WKH RQOLQH GUXJ PDUNHWV 7KLUGO\ LW LV DQ LGHRORJLFDO SURMHFW DLPLQJ DW
FUHDWLQJDFXUUHQF\±DQGDYLUWXDOHFRQRP\±ZKLFKDUHOLEHUDWHGIURPDQ\FRQWUROE\JRYHUQPHQW
RURWKHULQVWLWXWLRQV$FFRUGLQJWRZZZELWFRLQRUJ
%LWFRLQ LV DQ H[SHULPHQWDO QHZ GLJLWDO FXUUHQF\ WKDW HQDEOHV LQVWDQW SD\PHQWV WR DQ\RQH
DQ\ZKHUH LQ WKH ZRUOG %LWFRLQ XVHV SHHUWRSHHU WHFKQRORJ\ WR RSHUDWH ZLWK QR FHQWUDO
DXWKRULW\PDQDJLQJWUDQVDFWLRQVDQGLVVXLQJPRQH\DUHFDUULHGRXWFROOHFWLYHO\E\WKHQHWZRUN
%LWFRLQLVDOVRWKHQDPHRIWKHRSHQVRXUFHVRIWZDUHZKLFKHQDEOHVWKHXVHRIWKLVFXUUHQF\
%LWFRLQ ZDV VWDUWHG LQ E\ D SVHXGRQ\PRXV IRXQGHU NQRZQ DV 6DWRVKL 1DNDPRWR ,W LV DQ
RQOLQHRQO\FXUUHQF\SURYLGLQJXQWUDFHDEOHWUDQVDFWLRQVDVIDUDVWKHKROGHURIWKH%LWFRLQ³ZDOOHW´
D UDQGRP VHULHV RI QXPEHUV DQG FKDUDFWHUV WDNHV GXH FDUH RI VHFXULW\ %LWFRLQV FDQ EH
H[FKDQJHG IRU PDMRU UHDOZRUOG FXUUHQFLHV LQ VSHFLDOLVHG VHUYLFHV VXFK DV 0W*R[
ZZZPWJR[FRP
%LWFRLQ¶VYDOXHLVQRWIL[HGDQGLVWKHUHIRUHIORDWLQJ%LWFRLQ¶VH[FKDQJHUDWHKDVIOXFWXDWHGZLOGO\
GXULQJ LWV H[LVWHQFH KLWWLQJ UHFRUG KLJK GXULQJ WKH ZULWLQJ RI WKLV VWXG\ 7KH DPRXQW %LWFRLQV
LQFUHDVHV DW D GHFUHDVLQJ UDWH RYHU WLPH WKURXJK D FRPSOH[ PDWKHPDWLFDO SURFHVV FDOOHG
³PLQLQJ´ XQWLO LW UHDFKHV PLOOLRQ ZKLFK LV WKH PD[LPXP SRVVLEOH QXPEHU RI %LWFRLQV 7KH
DPRXQW%LWFRLQVDWWKHWLPHRIZULWLQJWKLVUHSRUWZDV WKHWRWDOYROXPHRIWKH %LWFRLQ
HFRQRP\WKXVEHLQJDERXWPLOOLRQHXURVDERXW¼%7&DIWHUDVWHHSULVHRYHUWKHSDVW
PRQWKV7KHYROXPHRI6LON5RDGVDOHVFRUUHVSRQGVWRDERXWRIWKHWRWDO%7&VH[FKDQJHG
WKURXJKGLIIHUHQWVHUYLFHV
$WWDFNLQJ WKH %LWFRLQ HFRQRP\ KDV EHHQ LQWURGXFHG DV RQH PHDVXUH DJDLQVW WKH WUDGH RI LOOHJDO
JRRGVLQWKH'DUNQHW
%LWFRLQH[FKDQJHUDWHKLWWLQJUHFRUGKLJKLQ0DUFK
7KHGHYHORSPHQWRI%LWFRLQ¶VH[FKDQJHUDWHDJDLQVW86'EHWZHHQ-XO\DQG0DUFK6RXUFH
ELWFRLQFKDUWVFRPFKDUWV&&%<6$
2YHUYLHZRIH[LVWLQJDFWLYLWLHV
$VDSDUWRIWKHVWXG\DUHYLHZRIH[LVWLQJDFWLYLWLHVUHODWHGWR'DUNQHWGUXJPDUNHWVZDVGRQH7KH
UHYLHZ FRYHUHG D QXPEHU RI LQWHUQDWLRQDO RUJDQLVDWLRQV DV ZHOO DV QDWLRQDO ODZ HQIRUFHPHQW
DXWKRULWLHVLQ$XVWUDOLD$XVWULD)LQODQGWKH1HWKHUODQGV8QLWHG.LQJGRPDQGWKH8QLWHG6WDWHV7KH
LQIRUPDWLRQZDVFROOHFWHGIURPWKHRUJDQLVDWLRQV¶ZHESDJHVSXEOLFDWLRQVDVZHOODVSUHVVUHOHDVHV
DQG DUWLFOHV SXEOLVKHG LQ WKH PHGLD ,Q DGGLWLRQ VHYHUDO H[SHUWV ERWK DFDGHPLFV DQG SUDFWLWLRQHUV
ZHUHLQWHUYLHZHGIRUWKHUHYLHZ
$FFRUGLQJ WR WKH UHYLHZ QDWLRQDO ODZ HQIRUFHPHQW DXWKRULWLHV DUH DZDUH RI WKH SKHQRPHQRQ DQG
VRPH RI WKHP DUH DOUHDG\ LQYHVWLJDWLQJ FDVHV GHDOLQJ ZLWK WUDGH RULJLQDWLQJ IURP WKH DQRQ\PRXV
PDUNHWSODFHV,QWKH1HWKHUODQGVWKHSROLFHDUHSUHSDULQJDQDGPLQLVWUDWLYHDGYLFHIRUWKH0LQLVWU\RI
-XVWLFH 7KH SKHQRPHQRQ KDV DOVR EHHQ LGHQWLILHG E\ VRPH RI WKH LQWHUQDWLRQDO RUJDQLVDWLRQV EXW LW
KDVQRWEHFRPHDSULRULW\(0&''$DUHFRQVLGHULQJH[SORULQJWKHLVVXHLQPRUHGHSWK
7KH SROLFH DXWKRULWLHV LQWHUYLHZHG IRU WKH VWXG\ UHSRUWHG VHYHUDO FKDOOHQJHV LQ UHJDUGV WR
LQYHVWLJDWLRQVUHODWHGWRRQOLQHGUXJWUDGH
7KHUHLVOLWWOHLQIRUPDWLRQRIDQGH[SHULHQFHZLWKWKHVXEMHFW
7KHUH LV QR WUDLQLQJ UHODWHG WR WKH VXEMHFW $ELOLW\ WR LQYHVWLJDWH 'DUNQHWUHODWHG FULPHV
GHSHQGVRQLQGLYLGXDOLQYHVWLJDWRUV¶SHUVRQDOLQWHUHVWVLQDQGGHGLFDWLRQWRWKHVXEMHFW
,Q VRPH FDVHV WKH H[SHUWLVH UHODWHG WR F\EHUFULPH LV ORFDWHG LQ VSHFLDOLVHG XQLWV EXW WKH
LQYHVWLJDWLRQ RI GUXJ FDVHV LV GRQH RQ WKH PXQLFLSDO OHYHO ZLWKRXW HQRXJK H[FKDQJH RI
LQIRUPDWLRQEHWZHHQWKHWZROHYHOV
7KH UHVRXUFHV IRU FRPEDWWLQJ F\EHUFULPH DUH VFDUFH DQG RIWHQ DOORFDWHG WR FDVHV ZLWK D
KLJKHUSROLWLFDOSULRULW\VXFKDVFKLOGSRUQRJUDSK\DQGWHUURULVP
,W VHHPV WKDW IRU WKH WLPH EHLQJ WKHUH LV QR ZD\ WR ZRUN DURXQG WKH DQRQ\PLVLQJ DQG
HQFU\SWLQJWHFKQRORJLHVDSSOLHGLQWKH'DUNQHW
'XH WR WKH QHZ PRGH RI RSHUDWLRQ EURXJKW DERXW E\ WKH DQRQ\PRXV PDUNHWSODFHV WKH FXVWRPV
LQFUHDVLQJO\HQFRXQWHUGHOLYHULHVFRQWDLQLQJLOOHJDOVXEVWDQFHVRIWHQSDFNHGLQYDFXXPVHDOHGEDJV
&ULPLQDOVSUHIHUUHJXODUSRVWDVWKHLUFRQWHQWVGRQRWQHHGWREHUHSRUWHGWRWKHFXVWRPVLQDGYDQFH
,Q (XURSH WKH 1HWKHUODQGV KDV EHHQ LGHQWLILHG DV D KXE IRU LOOLFLW VKLSPHQWV $V D UHVSRQVH WKH
FXVWRPV LQ WKH 1HZ =HDODQG KDYH VFDQQHG DOO SRVWDO GHOLYHULHV IURP WKH 1HWKHUODQGV DQG WKH
$XVWUDOLDQFXVWRPVKDYHWLJKWHQHGWKHPRQLWRULQJRIWKHGHOLYHULHVIURPWKHFRXQWU\
4 Analysis of possible points of interventions
7KHIROORZLQJLQWHUYHQWLRQVIROORZWKHEXVLQHVVORJLFRI6LON5RDG 6HHWKHSURFHVVDQDO\VLVRQSDJH
IRUDQLOOXVWUDWHGGHVFULSWLRQ
,QWHUYHQWLRQSRLQW3UHYHQWLQJWKHPDLQVWUHDPLQJRIRQOLQHEX\LQJRIGUXJV
$FWLRQ.HHSLQJORZSURILOH
6LON5RDGKDVJRWDORWRISXEOLFDWWHQWLRQLQWKH8QLWHG6WDWHVDQGLQ$XVWUDOLDZKLFKKDYHFDXVHGLWV
XVHU UDWHV WR VN\URFNHW $V D FRPPXQLFDWLRQV VWUDWHJ\ EHLQJ UHDFWLYH UDWKHU WKDQ SURDFWLYH LV
UHFRPPHQGHG)RUSRVVLEOHPHGLDFRQWDFWVDIDFWVKHHWZLWKNH\PHVVDJHVVKRXOGEHSUHSDUHG
$FWLRQ'HVFULELQJLWLQWKHSXEOLFDVFULPLQDODQGPDUJLQDODFWLYLW\HPSKDVLVLQJULVNV
2QOLQH PDUNHW LQFUHDVHV WKH DYDLODELOLW\ RI GUXJV E\ EULQJLQJ WKH PDUNHW KRPH ± RU DQ\ RWKHU SODFH
ZKHUHWKHDFFHVVWRDQRQ\PRXVQHWZRUNVLVDYDLODEOH'UXJXVHUVZLOOJHWWKHLUVXEVWDQFHVDQ\ZD\
RQOLQHVDOHVLVMXVWDZD\WRPDNHLWHDVLHUVDIHUDQGLQDPRUHFRQYHQLHQWIDVKLRQ)RUSHRSOHZKR
DUHQRW\HWXVLQJGUXJVRQOLQHPDUNHWVPD\ORZHUWKHWKUHVKROGWRWU\DQGVWDUWXVLQJGUXJV
$Q\FRPPXQLFDWLRQWRWKHSXEOLFDERXWEX\LQJDQGVHOOLQJGUXJVRQOLQHVKRXOGHPSKDVLVHWKDWLW
x LVPDUJLQDODQGLOOHJDODFWLYLW\
x LVRUJDQLVHGE\DQGEHQHILWVFULPLQDOJURXSVDQGRIWHQKDUPVPDQ\RWKHUV
x SRVHVDWKUHDWWRRQH¶VKHDOWK\RXQHYHUNQRZZKDW\RXJHWDQG
x HYHQ WKRXJK WKH PDUNHWSODFH LWVHOI LV DQRQ\PRXV VKLSSLQJ LV PRQLWRUHG E\ WKH ODZ
HQIRUFHPHQWDXWKRULWLHV
$FWLRQ([SODLQLQJWKHULVNVWRWKRVHZKRKDYHORJJHGLQWR6LON5RDG
6LON5RDGKDVDOLYHO\FRPPXQLW\IRUXP0DQ\RIWKRVHZKRKDYHORJJHGLQLQRUGHUWREX\GUXJVDUH
OLNHO\ WR KDYH D ORRN WKHUH $Q LQGHSHQGHQW DFWRU ZLWK SURIHVVLRQDO FUHGLELOLW\ DQG D VLQFHUH KDUP
UHGXFWLRQPLVVLRQSRVVLEO\DQ1*2FRXOGWDNHDQDFWLYHUROHLQSURYLGLQJUHOLDEOHLQIRUPDWLRQRQWKH
IRUXP DERXW WKH ULVNV DQG KDUPV DV ZHOO DV SUHYHQWLQJ WKHP *HWWLQJ WKH DFFHSWDQFH RI WKH
DGPLQLVWUDWRUVRIWKHVLWHDVZHOODVWKHFRPPXQLW\ LWVHOILVRINH\LPSRUWDQFH,QIRUPDWLRQDERXWWKH
UHDOULVNVPD\SXWRIIVRPHSRWHQWLDOEX\HUV'UXJXVHUVDUHRIWHQYHU\NQRZOHGJHDEOHDERXWGLIIHUHQW
VXEVWDQFHVDQGWKHLUXVHVZKLFKFDOOVIRUDKLJKOHYHORISURIHVVLRQDOLVPRIDQ\RUJDQLVDWLRQFDUU\LQJ
RXWWKHLQWHUYHQWLRQ
,QWHUYHQWLRQSRLQW3UHYHQWLQJWKHXVHRIDQRQ\PLVLQJWHFKQRORJLHV
7HFKQLFDOO\ WKLV LQWHUYHQWLRQ LV KDUGO\ SRVVLEOH EHFDXVH WKH 7RU WHFKQRORJ\ LV GHYHORSHG DQG
GLVWULEXWHG DV IUHH RSHQ VRXUFH VRIWZDUH 7KH &KLQHVH ILUHZDOO FDQ OLPLW WKH FRPPXQLFDWLRQ RI 7RU
QRGHVWRDFHUWDLQH[WHQWEXWWKHGHYHORSHUVRI7RUDUHILQGLQJQHZZD\VWRSUHYHQWWKHILUHZDOOIURP
GHWHFWLQJ7RUGDWDWUDQVIHUVIURPRWKHUGDWDVWUHDPV
$QRWKHUSRVVLEOHDSSURDFKLVWRFULPLQDOLVHWKHXVHRIDQRQ\PLVLQJWHFKQRORJLHV,WZRXOGEHDVWURQJ
VWDWHPHQW DJDLQVW IUHHGRP RI VSHHFK DQG SULYDF\ DQG SROLWLFDOO\ GLIILFXOW LQ PDQ\ FRXQWULHV (YHQ
FRQVLGHULQJLWVKRXOGEHDPDWWHURIKLJKOHYHOSROLWLFDOGHEDWHZKHUHWKHKDUPVSRVHGE\DQRQ\PRXV
QHWZRUNVUHODWHGQRWRQO\WRGUXJVVKRXOGEHZHLJKHGDJDLQVWWKHLUEHQHILWV$OVRDQ\JRYHUQPHQW
HQDFWLQJ VXFK D ODZ RXJKW WR KDYH WKH UHVRXUFHV WR HQIRUFH LW 0RUHRYHU VXFK D SROLF\ PD\ KDYH
XQH[SHFWHGFRXQWHUHIIHFWVDQGUHSHUFXVVLRQV5HJDUGOHVVRIVXFKFRQVLGHUDWLRQVWKHVHLVVXHVDUH
RI D PRUH JHQHUDO QDWXUH WKDW ZRXOG IDOO LQWR WKH UHPLW RI WKH &RXQFLO RI (XURSH¶V &\EHUFULPH
&RQYHQWLRQDQGDOVRWKH&R(3ROLF\RQ,QWHUQHW*RYHUQDQFH
,QWHUYHQWLRQSRLQW,QWHUYHQLQJWKH%LWFRLQHFRQRP\
%LWFRLQV DUH LQFUHDVLQJO\XVHGRQWKHRQOLQHPDUNHWSODFHVWRSD\IRUGUXJV7KH%LWFRLQ HFRQRP\ LV
KLJKO\YRODWLOHZLWKDKLVWRU\RIVWURQJYDOXHIOXFWXDWLRQV6LON5RDGXVHVKHGJLQJDJDLQVWIOXFWXDWLRQV
ZKLFKPDNHVDQ\DWWDFNVDJDLQVWWKHFXUUHQF\QRWRQO\H[SHQVLYHEXWUDWKHULUUHOHYDQWWRR
:KDWPLJKWKRZHYHUEHZRUWKH[SORULQJLVWRWU\WRLGHQWLI\WKHLQGLYLGXDOVGRLQJWKHELJJHVW%LWFRLQ
H[FKDQJHVLQWKHGHGLFDWHGVHUYLFHVVXFKDV0W*R[7KLVFDQSUREDEO\QRWEHGRQHZLWKRXWDUHTXHVW
Buying drugs at Silk Road – process analysis
E\FRXUWVLQWKHFRXQWULHVZKHUHWKH%LWFRLQH[FKDQJHVRSHUDWHDQGPD\SURYHGLIILFXOWWRFDUU\RXWLQ
SUDFWLFH7KHUHKDVEHHQDQDWWHPSWE\WKH%LWFRLQFRPPXQLW\WRWUDFNGRZQDZDOOHWFRQWDLQLQJPRUH
WKDQ%LWFRLQVDOOHJHGO\EHORQJLQJWRVRPHRQHLQYROYHGLQ6LON5RDG7KHDWWHPSWHQGHGXS
ZLWKRXW VXFFHVV 7KH %LWFRLQV GLVDSSHDUHG ZLWKRXW D WUDFH DQG WKH KROGHU RI WKH ZDOOHW ZDV QHYHU
UHYHDOHG
,QWHUYHQWLRQSRLQW,PSURYLQJWKHPRQLWRULQJRIPDLODQGFRXULHUGHOLYHULHV
'UXJV DFTXLUHG IURP RQOLQH PDUNHWSODFHV DUH W\SLFDOO\ GHOLYHUHG WR WKH FXVWRPHU E\ PDLO RU FRXULHU
,PSURYLQJWKHPRQLWRULQJRIWKHGHOLYHULHVPD\EHDQHIIHFWLYHZD\WRERWKLQWHUFHSWLOOLFLWGHOLYHULHVDV
ZHOO DV WR UHGXFH WKH DWWUDFWLYHQHVV RI WKH GHOLYHU\ PHWKRG DPRQJ FXVWRPHUV 0RUHRYHU WKLV LV D
VWUDWHJ\ZKLFKKDVOHGWRVHL]XUHVDQGDUUHVWVLQVHYHUDOFRXQWULHV$PRUHFRKHUHQWZD\WRRSHUDWH
EHWWHUUHVRXUFHVDQGVKDULQJRILQIRUPDWLRQDQGEHVWSUDFWLFHEHWZHHQFXVWRPVDQGGHOLYHU\VHUYLFHV
PLJKWSURYHWRKDYHVRPHLPSDFW
,QWHUYHQWLRQSRLQW3UHVHQFHDQGLQIRUPDWLRQFROOHFWLRQ
+DYLQJDSUHVHQFHLQ6LON5RDGPD\KDYHVHYHUDOGLIIHUHQWJRDOVDQGPRGHVRIRSHUDWLRQ
$FWLRQ*DWKHULQJLQIRUPDWLRQDQGEXLOGLQJNQRZOHGJH
2QOLQHGUXJPDUNHWVDUHVWLOODUHODWLYHO\QHZSKHQRPHQRQDWOHDVWLQWKHFXUUHQWPDJQLWXGH/HDUQLQJ
DERXW WKH PRGHV RI RSHUDWLRQ DQG VWUXFWXUH RI WKH H[LVWLQJ RQOLQH GUXJ PDUNHW DV ZHOO DV IROORZLQJ
QHZ WUHQGV DQG WKH SUHYDOHQFH RI QHZ SV\FKRDFWLYH VXEVWDQFHV ZLOO EH KHOSIXO IRU DQ\ IXWXUH
LQWHUYHQWLRQVDJDLQVWRQOLQHGUXJPDUNHWV
$FWLRQ3ROLFHSUHVHQFH
7KH 6LON 5RDG FRPPXQLW\ LV TXLWH SDUDQRLG 9LVLEOH SUHVHQFH RI ODZ HQIRUFHPHQW PLJKW NHHS WKH
FRPPXQLW\RQWKHLUWRHVDQGQHZFRPHUVIURPEX\LQJWKHGUXJV7KH'UXJ(QIRUFHPHQW$JHQF\RIWKH
8QLWHG 6WDWHV KDV DGPLWWHG WKHLU SUHVHQFH LQ 6LON 5RDG EXW KDV QRW GLVFORVHG DQ\ GHWDLOV RI WKHLU
DFWLYLWLHV:KHWKHUFODQGHVWLQHDFWLRQLVEHWWHUWKDWSXEOLFSUHVHQFHUHPDLQVWREHGHFLGHG
$FWLRQ+DUPUHGXFWLRQLQWHUYHQWLRQ
6LON 5RDG XVHUV GLVFXVV WKH ULVN DQG KDUP UHGXFWLRQ SRVVLELOLWLHV RQ WKH FRPPXQLW\ IRUXP $
SURIHVVLRQDOSUHVHQFHLQWKHZD\GHVFULEHGLQ$FWLRQRI,QWHUYHQWLRQSRLQWPLJKWEHPHDQLQJIXO
ZD\WRSUHYHQWKDUPDQGWRPDNHDFRQWDFWWRWKHRQOLQHFRPPXQLW\
,QWHUYHQWLRQSRLQW$WWDFNLQJ6LON5RDGLQIUDVWUXFWXUH
7KH7RUQHWZRUNLVUDWKHUUHVLVWDQWDJDLQVWGLIIHUHQWIRUPVRIDWWDFNVDQGLVFRQVWDQWO\GHYHORSHGWR
EH DEOH WR EHWWHU GHDO ZLWK GLIIHUHQW WKUHDWV $OVR WKH GHIHQFHV RI 6LON 5RDG DUH FRQWLQXRXVO\
LPSURYHGHVSHFLDOO\DIWHUWZRLGHQWLILHGDWWDFNVDJDLQVWWKHVLWHLQODWH6RIDUWKHVHUYLFHKDV
DOOHJHGO\ QRW EHHQ FRPSURPLVHG HYHQ WKRXJK PDQ\ KDYH DVSLUDWLRQV WR EULQJ LW GRZQ &RQVLGHULQJ
WKH ZD\ WKH ZKROH V\VWHP KDV EHHQ EXLOW WR UHVLVW DWWDFNV WDNLQJ WKLV DSSURDFK PD\ QRW YLDEOH WR
DJHQWVZLWKRXWUHPDUNDEOHWHFKQRORJLFDOUHVRXUFHV
,QWHUYHQWLRQSRLQW'HWHFWLQJRQOLQHVXSSOLHUVWKURXJKUHDOZRUOGLQYHVWLJDWLRQV
(YHQWKRXJKRQOLQHVXSSOLHUVDUHDEOHWRUHWDLQWKHLUDQRQ\PLW\ZKLOHVHOOLQJGUXJVLQWKH'DUNQHWWKH
SURFXUHPHQW RU SURGXFWLRQ RI WKH GUXJV KDV WR EH GRQH LQ WKH VDPH ZD\ DV LQ WKH UHJXODU GUXJ
EXVLQHVV &RPELQLQJ LQIRUPDWLRQ IURP UHJXODU GUXJ LQYHVWLJDWLRQV ZLWK LQIRUPDWLRQ UHFHLYHG IURP
RQOLQH PDUNHWSODFHV FRXQWU\ RI RULJLQ DQG RWKHU FOXHV DQG SRVVLEOH WHVW SXUFKDVHV SRVWPDUN
SDFNDJH ILQJHUSULQWV PD\ KHOS LQ WUDFNLQJ GRZQ RQOLQH VXSSOLHUV $ZDUHQHVVULVLQJ DV ZHOO
LGHQWLILFDWLRQ DQG GLVVHPLQDWLRQ RI EHVW SUDFWLFH PD\ SURYLGH SROLFH RIILFHUV ZLWK WRROV IRU FUDFNLQJ
GRZQRQRQOLQHVXSSOLHUV
,QWHUYHQWLRQSRLQW%XLOGLQJH[SHUWLVHRQWKHSKHQRPHQRQQRWLQWKHSURFHVVFKDUW
7KH NQRZOHGJH RI WKH QHZ RQOLQH GUXJ PDUNHW PRGHO LV VWLOO TXLWH VFDUFH DQG VFDWWHUHG DPRQJ
GLIIHUHQWSURIHVVLRQDOVDQGDFDGHPLFV7KHUHLVDQHHGWRLGHQWLI\FROOHFWVWUXFWXUHDQGGLVVHPLQDWH
WKHH[LVWLQJNQRZOHGJHDQGEHVWSUDFWLFHUHODWHGWRVXSSO\FXVWRPVDQGSROLFHGHPDQGDQGKDUP
UHGXFWLRQ
,QWHUYHQWLRQSRLQW$GYRFDF\DQGUDLVLQJDZDUHQHVVQRWLQWKHSURFHVVFKDUW
(XURSHDQ SURIHVVLRQDOV DQG GHFLVLRQ PDNHUV DUH VWLOO ODUJHO\ XQDZDUH DERXW WKH HPHUJHQFH RI WKH
QHZ DQRQ\PRXV EODFN PDUNHW LQ WKH 'DUNQHW <HW VWLOO VPDOO LQ VL]H LW LV D JURZLQJ WUHQG ZKLFK LV
WUDQVIRUPLQJWKHZD\GUXJVDUHERXJKW:KDW¶VPRUHWKH'DUNQHWRIIHUVFKDQQHOVQRWRQO\IRUGUXJV
EXW IRU RWKHU LOOHJDO DQG KDUPIXO SURGXFWV VHUYLFHV DQG LQIRUPDWLRQ ,QFRUSRUDWLQJ RQOLQH GUXJ VDOHV
LQWRWKHF\EHUFULPHDJHQGDDQGUDLVLQJSURIHVVLRQDOV¶DZDUHQHVVVKRXOGEHFRQVLGHUHGDVSULRULWLHVRI
WKHLQWHUYHQWLRQ
5 Conclusions and recommendations
&\EHUFULPH DQG WKH RQOLQH WUDGH RI GUXJV DUH D JURZLQJ WUHQG 7KH UHFHQW GHYHORSPHQWV LQ ZHE
WHFKQRORJLHV KDYH HQDEOHG WKH IRXQGDWLRQ RI QHZ WRWDOO\ DQRQ\PRXV PDUNHWSODFHV IRU GUXJV 7KH
WUDGHRQWKRVHPDUNHWSODFHVGHVSLWHEHLQJRSHQDQGSXEOLF ZLWKLQWKH'DUNQHWLVEH\RQGWKHUHDFK
RIODZHQIRUFHPHQWDXWKRULWLHVDQGKDYHFDXVHGFRQIXVLRQDQGIUXVWUDWLRQDPRQJWKHP$XWKRULWLHVLQ
VHYHUDOFRXQWULHVDUHDZDUHRIWKHQHZSKHQRPHQRQDQGDUHORRNLQJIRUZD\VWRLQWHUYHQHLW7KHUHLV
DQHHGIRUMRLQWDFWLYLW\WREXLOGXSSURIHVVLRQDOUHDGLQHVVWRILJKWWKHGUXJWUDGHLQWKH'DUNQHW
5HFRPPHQGDWLRQ%XLOGLQJLQWHUQDWLRQDOQHWZRUNVWRVKDUHNQRZOHGJHDQGEXLOGLQJ
H[SHUWLVH
7KHRQOLQHGUXJWUDGHLVDJOREDOSKHQRPHQRQZKLFKFDOOVIRUFRRUGLQDWHGLQWHUQDWLRQDODFWLRQ$VWKH
FXUUHQW OHYHO RI NQRZOHGJH DERXW DQRQ\PRXV GUXJ PDUNHWV LV IDLUO\ OLPLWHG DQG VFDWWHUHG D
UHFRPPHQGHGVWDUWLQJSRLQWLVWRFROOHFWWKHLQWHUQDWLRQDOO\H[LVWLQJNQRZOHGJHDQGJRRGSUDFWLFHDQG
WR HVWDEOLVK ZD\V WR SURYLGH LW WR SURIHVVLRQDOV ZRUNLQJ ZLWK WKH VXEMHFW ,QWHUQDWLRQDO SURIHVVLRQDO
QHWZRUNVDUHXVHIXOIRUERWKFROOHFWLQJDQGGLVVHPLQDWLQJNQRZOHGJH2QWKHQDWLRQDOOHYHOUHOHYDQW
DQGSUDFWLFDOLQIRUPDWLRQKDVWREHDYDLODEOHWRWKHSURIHVVLRQDOVRQDOOOHYHOVRIWKHFRPPDQGFKDLQ
6HYHUDO LQYHVWLJDWLRQV DJDLQVW VXSSOLHUV RSHUDWLQJ LQ WKH 'DUNQHW PDUNHWSODFHV DUH XQGHUZD\
SURGXFLQJ YDOXDEOH LQIRUPDWLRQ DERXW KRZ WKH GUXJ EXVLQHVV LQ WKH 'DUNQHW LV GRQH 6RPH SROLFH
RUJDQLVDWLRQV DUH HYHQ GRFXPHQWLQJ WKHLU ILQGLQJV IRU D ZLGHU XVH 7KHUH LV D JURZLQJ ERG\ RI QHZ
UHVHDUFK UHODWHG WR WKH WHFKQRORJLFDO HFRQRPLF DQG VRFLDO DVSHFWV RI WKH 'DUNQHW PDUNHWSODFHV
$OVRVRPHSUHYHQWLRQRUJDQLVDWLRQVZRUNLQJLQWKH'DUNQHWFDQSURYLGHXVHIXOLQIRUPDWLRQDERXWWKH
PDUNHWSODFHFRPPXQLWLHV
5HFRPPHQGDWLRQ'HSOR\LQJGLIIHUHQWVWUDWHJLHV
6XSSO\DQGKDUPUHGXFWLRQVWUDWHJLHVDUHUHFRPPHQGHGLQWKH'DUNQHW7DFNOLQJWKHVXSSO\RIGUXJV
GLUHFWO\LVGLIILFXOWEHFDXVHRIWKHDQRQ\PLW\SURYLGHGE\WKH'DUNQHWEXWLPSURYLQJWKHPRQLWRULQJRI
PDLOGHOLYHULHVDQGXQGHUVWDQGLQJEHWWHUKRZWKH'DUNQHWIXQFWLRQVDVDSDUDOOHOVXSSO\FKDQQHOPD\
KHOSODZHQIRUFHPHQWDXWKRULWLHVWRFXUEWKHVXSSO\RULJLQDWLQJIURPWKHDQRQ\PRXVPDUNHWSODFHV
)URP KDUP UHGXFWLRQ¶V SRLQW RI YLHZ WKH 'DUNQHW LV DQ LQWHUHVWLQJ RSSRUWXQLW\ WR LQWHUDFW ZLWK WKH
SHRSOH ZKR XVH DQG WHVW RQ GLIIHUHQW NLQGV RI SV\FKRDFWLYH VXEVWDQFHV ,W LV ERWK D FKDQQHO WR GR
KDUPUHGXFWLRQDQGZD\WROHDUQDERXWLW7KHVWXG\GLGQRWLGHQWLI\DQ\WUHDWPHQWVHUYLFHVSURYLGHGLQ
WKH'DUNQHWHYHQWKRXJKLWZRXOGEHDQDWXUDOSODFHWRSURYLGHRUPDUNHWVXFKVHUYLFHV
,I D GHPDQG UHGXFWLRQ VWUDWHJ\ LV WR EH LPSOHPHQWHG VHFRQGDU\ DQG WHUWLDU\ UHGXFWLRQ OHYHOV DUH
SRVVLEOHDVWKHSHRSOHLQWKHPDUNHWSODFHDUHDOUHDG\XVLQJRUFRQVLGHULQJXVLQJGUXJV7KH'DUNQHW
LVDYHU\FKDOOHQJLQJHQYLURQPHQWIRUGHPDQGUHGXFWLRQDVWKHSHRSOHUHDFKHGWKHUHDUHOLNHO\WRKDYH
DYHU\SRVLWLYHDWWLWXGHWRZDUGVGUXJV
5HFRPPHQGDWLRQ)RUPLQJRSHUDWLYHSDUWQHUVKLSVZLWKVHUYLFHSURYLGHUV
'UXJWUDGHLQWKH,QWHUQHWGHSHQGVRQDQXPEHURIOHJDOVHUYLFHVERWKSXEOLFDQGSULYDWHZKLFKKDYH
WKHFRPPRQLQWHUHVWZLWKODZHQIRUFHPHQWDXWKRULWLHVDQGGUXJSUHYHQWLRQSURIHVVLRQDOVWR VWRSWKH
WUDIILFNLQJLQWKHLOOHJDOVXEVWDQFHV6XFKVHUYLFHVLQFOXGH,QWHUQHWVHUYLFHSURYLGHUVPDLODQGFRXULHU
VHUYLFHVDVZHOODVWKHRQOLQHFXUUHQF\H[FKDQJHDJHQFLHVSURYLGLQJ%LWFRLQV)RUPLQJSDUWQHUVKLSV
ZLWKVXFKRUJDQLVDWLRQLVUHFRPPHQGHGWRVHFXUHWKHLPSDFWDQGVXVWDLQDELOLW\RIDQ\LQWHUYHQWLRQ
2Q WKH LQWHUQDWLRQDO OHYHO RUJDQLVDWLRQV VXFK DV WKH 8QLYHUVDO 3RVWDO 8QLRQ ,QWHUQDWLRQDO
7HOHFRPPXQLFDWLRQ 8QLRQ 7KH (XURSHDQ 7HOHFRPPXQLFDWLRQV 1HWZRUN 2SHUDWRUV
$VVRFLDWLRQ HWF
DUHH[DPSOHVRISRWHQWLDOSDUWQHUV
Cover image and illustrations © iStockphoto.com