The Royal Canadian Mounted Police is seeking a digital solution for safely storing seized cryptocurrencies and non-fungible tokens.
The RCMP’s Digital Solution
The Royal Canadian Mounted Police (RCMP) has announced its pursuit of a centralized digital asset solution to streamline the seizure and storage of both cryptocurrency and nonfungible tokens (NFTs). Following an official tender launch on August 10, the RCMP’s statement elaborates on the motivation behind this project:
“The development of a centralized repository solution would allow police officers to seize these assets in a user-friendly manner, while also offering significant security to prevent the theft of said assets during their storage.”
Key Requirements Outlined
From the tender documents, RCMP has specified seventeen pivotal features for the forthcoming repository. Notably, the system should:
- Facilitate transactions for the top 20 cryptocurrency blockchains by market capitalization.
- Exhibit the scalability to accommodate emerging blockchains.
- Allow access to its data for authorized personnel.
- Support NFTs from Ethereum, Solana, and Polygon platforms.
Furthermore, the RCMP is insistent on addressing security concerns. This includes private key protection, a methodical disposal process, and daily automated verification. Lastly, an Android-based mobile application will also be on the horizon.
Cryptocurrency and Canadian Law Enforcement
In the Canadian context, there is a growing interplay between law enforcement and the crypto domain. Recently, specialized software from Chainalysis has been adopted by local agencies to investigate cybercrimes. This software equips Canadian police with the capability to trace blockchain transactions, zero-in on potential suspects, and determine funds’ final destinations.
Shift in the Canadian Cryptocurrency Landscape
In a broader perspective, the cryptocurrency landscape in Canada seems to be undergoing change. The proportion of Canadians owning Bitcoin saw a drop from 13.1% in 2021 down to 10.1% in 2022.
In Conclusion: Embracing the Digital Shift
The RCMP’s decision to develop a digital repository for seized cryptocurrencies and NFTs underscores the evolving nature of crime and assets in the 21st century. While traditional forms of assets like cash, property, and tangible goods have been the focus of seizures in the past, digital assets have increasingly become significant. The RCMP’s proactive approach not only aligns with the global trend of digitization but also fortifies the nation’s stance on digital crime. As the line between the digital and real worlds continues to blur, law enforcement agencies worldwide will likely need to follow suit, adapting their practices to safeguard and manage digital assets effectively.