The Canadian police have utilized Chainalysis Reactor, a blockchain analysis software, to track down crypto-related crimes effectively. This sophisticated tool enables law enforcement to pinpoint the specific platform implicated in illicit activities and gather crucial information on the account holder as well as transaction data.
The Lethbridge Herald newspaper reported that police forces utilize Chainalysis Reactor software to trace the movement of cryptocurrency, starting from its origin until it reaches an exchange. By tracing the transaction, authorities can request account holder details and transaction data to determine beyond the exchange where the cryptocurrency was sent.
One officer from the police force specialized in blockchain analysis investigation and emphasized the significance of a software tool. This tool elevated the effectiveness of tackling crypto crimes to unprecedented levels. Before its implementation, Canadian agencies often faced obstacles in resolving fraud cases involving digital assets.
The partnership between Chainalysis and the Calgary Police Service began in April 2023. During that time, Chainalysis announced the establishment of the Western Canada Cryptocurrency Investigations Centre. This center focuses explicitly on investigating crimes related to blockchain technology.
Canada’s Crypto Landscape
In the 2022 Global Crypto Adoption Index by Chainalysis, Canada has improved its rank from 26th in 2021 and 24th in 2020 to 22nd place. According to Chainalysis, there was an average of $1,144 Canadian dollars exposed to illicit crypto activity for every 1,000 Canadians during the same year.
According to the Bank of Canada’s report in August, it was observed that the ownership of Bitcoin and cryptocurrencies in the country declined. By the end of 2022, the percentage of Canadians holding Bitcoin (BTC) decreased from 13.1% in 2021 to 10.1%.
The Canadian government has recently intensified its regulations concerning crypto exchanges and service providers. In June 2021, new rules were enacted, requiring crypto platforms to register as money service businesses. They also had to adhere to anti-money laundering and counter-terrorism financing laws.
The Canadian police’s utilization of Chainalysis Reactor signifies the increasing scrutiny and enforcement of cryptocurrency activities within the country. Law enforcement agencies worldwide, including the U.S., also employ this software. Internal Revenue Service, the Federal Bureau of Investigation, and Europol.
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