Police In Canada Use Blockchain Technology To Fight Crypto Crime. Police in Canada revealed that they had conducted an investigation using blockchain monitoring software Chainalysis Reactor to eradicate crypto crime.
Police discussed the situation with Sergeant Kevin Talbot of the Lethbridge Police Service’s Economic Crimes Unit (LPS). Talbot has been trained in blockchain analysis, which is considered a significant advance for a smaller power like LPS.
The report notes technology has allowed LPS to track transactions, identify suspects and determine where funds have been deposited, although prosecuting fraudsters remains a challenge.
Talbot says it allows the police force to write production orders to gather information about account holders.
“We’re getting to a point where we have transaction data but we can’t track it because it requires special programming to do these things and training. In Canada, we’re making progress,” said Talbot, quoted from Bitcoin.com, Monday ( 21/8/2023).
Talbot added, will use the Chain Reactor program to perform traces to the exchange. The information is then shared with investigators who will then write a production order to get information about the account holder, whether there are funds in the account and where the funds have been transferred.
“When we conducted this investigation, we focused on two things. We want to prosecute someone but often even though the individuals involved are out of the country which makes it a little more difficult to prosecute, there isn’t always an opportunity where they are local or at least in North America.”
Previously, South Korea took steps to address the increase in crypto-related criminal activity by launching a special investigation unit.
The multi-agency joint virtual asset crime investigation unit aims to protect investors’ interests while the country awaits comprehensive regulation of the industry.
The unit, which operates out of the Seoul Southern District Prosecutors’ Office, will consist of 30 investigators drawn from several government agencies and bodies, including prosecutors, the Financial Oversight Service, the National Tax Service, and the South Korean Customs Service.
Police In Canada Use Blockchain Technology To Fight Crypto Crime. “Virtual assets with more than 6 million participants have become investment products comparable to stocks, but the laws and systems are not yet complete, so market players are practically left behind. from legal protection,” said the Prosecutor’s Office in a statement, quoted from Yahoo Finance, Saturday (29/7/2023).
The Prosecutor’s Office added that it will take an active role in protecting investors in the crypto market until appropriate regulations are implemented. One of its goals is to streamline investigative procedures for crypto-related criminal cases, from detection to analysis.
This fast-track approach will allow for more efficient handling of such cases and contribute to curbing illicit activity in the cryptocurrency space.
The main area of focus for the investigation will be targeting cryptocurrencies that exhibit high price volatility or are subject to de-listing. The new unit will also be tasked with investigating and combating various illegal trading practices, such as market manipulation or insider trading, that can exploit the volatile nature of certain cryptocurrencies.
The investigative team will also look into cases of tax evasion related to crypto transactions, unauthorized foreign exchange transfers, and any attempt to conceal criminal profits.
Additionally, they actively target money laundering cases, as cryptocurrencies can potentially be used to obscure the origin of illegal funds.
Previously, South Korea approved the first independent digital asset bill to improve investor protection. This approval was granted just over a year after Do Kwon’s token crash exacerbated the crypto market’s losses.
Reporting from Yahoo Finance, Sunday (2/7/2023), the South Korean parliament passed the Virtual Asset User Protection Act on Friday, June 30, 2023 which integrates 19 crypto-related rules, after a prolonged delay.
The crypto bill defines digital assets and imposes penalties for offenses such as use of non-public information, market manipulation and unfair trading practices.
The law gives the Financial Services Commission powers to oversee crypto operators as well as custodians of assets. The Bank of Korea may also investigate such platforms.
Police In Canada Use Blockchain Technology To Fight Crypto Crime. The action requires insurance coverage, a reserve fund, and the necessary record keeping. The rules cover assets like Bitcoin, while existing capital market laws apply to tokens that are considered securities.
Aside from Kwon’s fall, investors were separately warned about lingering risks in the digital asset sector when two South Korean-linked crypto lenders halted withdrawals sequentially in June.
The chairman of the National Policy Committee in the South Korean parliament, Back Hyeryun said the new rulebook would focus on investor protection for now and would gradually expand to provide broader oversight.