Canada streamlines process of crypto and NFT seizures
- Canada is addressing the growing incorporation of these assets in unlawful activities by emphasizing the necessity for secure storage.
- The RCMP’s priorities lie in firm security measures, scalability, and in ensuring effective management and control.
The Royal Canadian Mounted Police (RCMP) is adapting to the dynamic world of digital assets by streamlining the process of seizing and securely storing cryptocurrencies and Non-Fungible tokens [NFTs].
The RCMP’s digital asset repository, announced on 10 August, aims at ensuring their secure handling. The integration of cryptocurrencies and NFTs into criminal activities has become a concern for global law enforcement, including Canada.
RCMP adapts to the digital era: Safeguarding seized crypto and NFTs
As cryptocurrencies and NFTs gain prominence, law enforcement agencies are forced to adapt to effectively manage and control these assets. The tender issued by the RCMP outlines 17 specific requirements for the prospective repository.
These requirements reflect the diverse challenges posed by the ever-expanding world of digital assets. The repository’s scalability, for instance, is a crucial aspect, allowing it to accommodate both existing and emerging blockchain technologies.
Also, the RCMP aims to process transactions for the top 20 cryptocurrency blockchains by market capitalization. The repository’s ability to hold various types of NFTs, including those based on Ethereum [ETH], Solana [SOL], and Polygon [MATIC], underlines the need to adapt to the broader spectrum of digital assets.
A notable aspect of the repository’s design is its focus on security measures. The protection of private keys, secure disposal procedures, and daily automated verification mechanisms underscore the dedication to maintaining the integrity and security of the seized assets.
Earlier this year, the RCMP began utilizing specialized software provided by Chainalysis, a company specializing in blockchain analysis. This software empowers officers to trace blockchain transactions, identify individuals involved, and track the flow of funds.
However, it’s worth noting that the adoption of cryptocurrencies among Canadians has shown some fluctuations. The decline in the number of Canadians holding Bitcoin [BTC] from 13.1% in 2021 to 10.1% in 2022 indicates the variable nature of public engagement.