Canada to Create Solutions for Storing Seized Crypto Assets

While the primary focus is on cryptocurrencies, the RCMP acknowledges the importance of including NFTs in its approach.

In Canada, the Royal Canadian Mounted Police (RCMP) and Shared Services Canada (SSC) are collaborating to develop a groundbreaking digital asset solution aimed at streamlining the seizure and storage of crypto and Non-Fungible Tokens (NFTs) from multiple public blockchains.

On August 10, the RCMP opened a tender inviting applications from technology providers capable of developing a centralized repository solution. This move marks a significant stride in adapting law enforcement methods to the evolving digital era.

The Essential Features of the Crypto Storage Solution

The tender released by the RCMP outlines a comprehensive list of seventeen key features they seek from the future repository solution. Among these requirements is the capability to process transactions for the top 20 cryptocurrencies by market capitalization.

This demonstrates a forward-thinking approach, ensuring that the RCMP’s solution remains relevant as the crypto landscape evolves. Recognizing the ever-evolving nature of the digital asset landscape, the RCMP said the solution must not only onboard existing blockchains but also accommodate new ones that may emerge over time.

An equally significant aspect of this initiative is accessibility. The RCMP intends to grant authorized users access to the repository’s data, enabling efficient collaboration between law enforcement agencies and other stakeholders. Such accessibility could potentially enhance the effectiveness of investigations and asset recovery processes.

While the primary focus is on cryptocurrencies, the RCMP acknowledges the importance of including NFTs in its approach. Consequently, the repository is expected to handle NFTs created on Ethereum (ETH), Solana (SOL), and Polygon (MATIC). This emphasizes the adaptability of the system under consideration and its ability to accommodate various digital asset types.

Other features in the repository include transaction logging, robust security measures, automated verification, and a Web interface.

The Changing Landscape in Crypto Fraud

The RCMP’s recent pursuit of a secure digital asset solution is a proactive response to the surge in criminal activities involving cryptocurrencies and NFTs. The rise of cryptocurrencies has ushered in a new paradigm of financial transactions, with both legitimate and illicit applications being recorded.

While cryptocurrencies provide greater privacy and protection for legitimate users, it have also become a favorite way for criminals to participate in activities such as ransomware attacks, internet scams, money laundering, and fraud.

This not only poses a threat to individual financial security but also undermines the integrity of financial systems and erodes public trust in digital assets. Recognizing the urgency of tackling this emerging challenge, the RCMP’s decision to seek an advanced digital asset solution marks a pivotal moment in law enforcement’s adaptation to the digital age.

Recently, Canadian law enforcement began employing specialist tools from Chainalysis to trace crypto while investigating cybercrime. Local police may now trace blockchain transactions, identify suspects, and discover where funds have been put.

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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.