Canadian law enforcement has started using specialized software to track cryptocurrency transactions while investigating cybercrimes. The police will now have the ability to monitor blockchain transactions, identify suspects, and determine where funds are being deposited. Through the agreement with blockchain data analysis company Chainalysis, Canadian law enforcement will be able to trace the path of crypto assets and identify which cryptocurrency exchange they have been transferred to following any cyber attack. This will enable them to quickly and reliably intervene in any potential attacks within the country.
A New Level of Crime Prevention
As announced to the Lethbridge Herald by local police, law enforcement authorities will now be able to track transactions within the crypto ecosystem and identify suspects through access to Chainalysis Reactor software. The program assists law enforcement in monitoring cryptocurrency from its point of origin until it is deposited in an exchange. Once the tracking platform is established, the police can request the account holder’s information and transaction data to see where the crypto has been sent outside of the exchange.
One of the officers trained as a blockchain analysis inspector emphasized the significance of the software in taking the police’s efforts against crypto crimes to a new level. Previously, Canadian agencies faced significant barriers when detecting fraud involving digital assets.
Decline in Crypto Asset Ownership
The partnership between Chainalysis and the Calgary Police Service began in April 2023. At that time, the company announced the launch of the Western Canada Cryptocurrency Investigation Centre, which focuses on crimes occurring within blockchain ecosystems.
Canada ranked 22nd in the Global Crypto Adoption Index by Chainalysis in 2023, compared to 26th in 2021 and 24th in 2020. According to Chainalysis, at least CAD 1,144 was stolen in illegal crypto activities per every 1,000 Canadians in the same year.
In August, the Bank of Canada reported a decline in Bitcoin and cryptocurrency ownership in the country. At the end of 2022, 10.1% of Canadians owned Bitcoin, a lower percentage than the 13.1% in 2021.
