Make Cryptocurrencies More Common by Improving Global Investigations into Cryptocurrency Crime

  • Researchers can leverage the benefits of crypto to uncover the immutable evidence of transactions stored on the blockchain by specifically empowering them, but federal law enforcement often has the resources and the knowledge. This means that local law enforcement is no longer responsible for crypto-related crimes, resulting in a huge backlog at the federal level.
  • Investors should not treat cryptocurrency with the same caution as their pensions or other investments, and there is little government oversight worldwide. A simple homepage or message on a forum can therefore easily lead to fraud for a large number of new investors.
  • Better education is needed. Better education at all levels, from training law enforcement to legislators and regulators. Investigations are facilitated by knowledge sharing in the crypto industry.

To really make a difference and enable greater crypto adoption, law enforcement officers, as well as regulators and legislators need to be properly trained. When the going gets tough – like during the pandemic – entrepreneurial human nature kicks into high gear. Individuals are looking for better ways to bring in money. This could be one of the reasons why cryptocurrencies have become so popular in recent years, thanks to the sheer number of people sitting at home wondering how to cope with low interest rates and rising inflation.

A new way to apply the law

But where there is money, there are criminals. Bad actors are specialists in human behavior and they see the increase in crypto traffic and emergence as a huge opportunity, knowing that many new investors will not do their homework. Investors should not treat cryptocurrency with the same caution as their pensions or other investments, and there is little government oversight worldwide. A simple homepage or message on a forum can therefore easily lead to fraud for a large number of new investors.

We have also seen an increase in pandemic-related scams, such as impersonating a seller of fake drugs, vaccines or tests, or offering loans and grants to companies, all of which have a crypto component, and the order’s strengths must react quickly to these new dangers. As a result, officials charged with protecting consumers are getting more and more headaches. We also hear from the crypto community that regulation is often late and not fit for purpose.

Better education is needed. Better education at all levels, from training law enforcement to legislators and regulators. Investigations are facilitated by knowledge sharing in the crypto industry. In addition, the resources and desire to develop more sensible regulations that protect consumers and give the industry the security it needs to continue to innovate and thrive.

Reduce the time it takes for new regulations to come into effect

To meet the needs of a crime involving digital assets, age-old investigative procedures require more than simple tweaks. As new crimes emerge, the crypto industry owes it to law enforcement to quickly educate all members of the public about this new environment. Compared to law enforcement, most cryptogamers are young digital natives. Cryptography can be strange, threatening or confusing to the vast majority of agents around the world, making them hostile to the technology. This has consequences, as law enforcement officers are often the first to arrive and gather evidence in accordance with a search warrant.

But would they know where to look for a Bitcoin wallet, for example? How can you control a crime if you don’t understand it? The biggest challenge, after education, is getting resources. In the United States, cryptocrime is considered a subset of cybercrime, similar to ransomware. Researchers can leverage the benefits of crypto to uncover the immutable evidence of transactions stored on the blockchain by specifically empowering them, but federal law enforcement often has the resources and the knowledge. This means that local law enforcement is no longer responsible for crypto-related crimes, resulting in a huge backlog at the federal level.

ALSO READ: Cryptos Are Changing The Market With FIREPIN Token (FRPN), Cardano (ADA) And The Sandbox (SAND)

Nancy J. Allen

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