BNN chief Comr. Gen. Marthinus Hukom said that international drug dealers are now using blockchain technology and cryptocurrency to conduct transactions in Bali. Blockchain and cryptocurrency allow users to carry out anonymous and decentralized financial transactions, making it harder for authorities to trace the flow of money.

"They use messaging apps like Telegram to communicate with buyers, then send coordinates for pick-up locations, eliminating the need for face-to-face contact with dealers or couriers. These transactions can take as little as two minutes and are extremely difficult for authorities to trace," Marthinus said on Tuesday, as quoted by Antaranews.

These syndicates have also established hidden drug laboratories and indoor cannabis farms in Bali, carrying out their illicit activities primarily in rented villas.

Marthinus also warned that Bali may be turning into a "killing ground" for members of transnational drug syndicates. He pointed to the recent shooting of two Australian men in Badung regency last month, which he suspects is linked to international drug trafficking networks.

Zivan Radmanovic, 32, was killed and Sanar Ghanim, 34, sustained serious injuries after two armed men broke into their villa in the early hours of June 14 and opened fire. Authorities have since arrested three suspects with the help of Interpol, though the investigation into the motive is still ongoing.

Read also: Arrest of three Australians over fatal shooting highlights rising crime in Bali