Chainalysis, a leading provider of blockchain data analytics services, has warned of the huge current and future problems that government agencies involved in investigating digital asset crimes could face if they don’t. not follow the digital asset industry.
In its Chainalysis 2022 survey on the state of cryptocurrency investigations reportthe blockchain intelligence firm said that with the rapid evolution of the digital asset industry, criminal elements may widen the knowledge gap between themselves, law enforcement agencies and regulators who do not improve their investigative skills.
“If agencies don’t become proficient in cryptocurrency investigations now, their knowledge gaps could worsen, causing them to fall even further behind criminals who routinely mine cryptocurrencies,” Chainalysis said.
The company was talking about survey results which showed that 74% of approximately 300 respondents from 183 public agencies in the United States and Canada considered their agencies to be “not well equipped to investigate crypto-related crimes. -change”.
Additionally, an overwhelming number of respondents also reveal that they feel their agencies are not doing enough to address the situation, even though digital asset-related surveys are relevant to them.
However, respondents still hold a very optimistic view of the digital asset industry. The survey found that more than half of the 300 respondents see more than 10 digital asset-related cases in a year, while nearly 40% see more than 20 incidents. Either way, most of them still argue that the industry has much more legitimate use cases and will positively advance the financial system.
Crimes related to digital assets can be reduced with more effort
In the report, Chainalysis recommends that public agencies integrate the right tools with reliable data; investing in training, and; partner with the private sector if they want to avoid the pitfall of being left behind by industry.
The report comes at a time when crimes related to digital assets, from phishing to ransomware attacks and money laundering, have increased. Investigations by Chainalysis and others have also found that some crimes are sponsored by governments seeking to evade sanctions like North Korea and Russia.
However, blockchain experts have assured that the tools available to investigate these crimes and the very nature of blockchain technology make the industry a poor choice for criminals. During a Senate hearing, Jackie Koven of Chainalysis said that blockchain transactions could be traced regardless of the technology used to obscure their trail.
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