Canada’s RCMP Spearheads Innovative Digital Asset Solution Amid Rising Crypto Challenges

Key Points:

• Canada’s RCMP and SSC team up to streamline crypto and NFT handling.
• 17 outlined requirements include top-notch crypto transaction processing and secure data access.
• Initiative combats rising illicit crypto use, aligned with Canada’s regulatory approach.

The Royal Canadian Mounted Police (RCMP) and the Canadian Shared Services Center (SSC) are collaborating to create a digital asset solution to streamline the confiscation and secure storage of encryption from various public blockchains encompassing cryptocurrencies and Non-Fungible Tokens (NFTs).

The bid announcement has been unveiled, setting the bidding deadline for September 21, 2023, at 14:00 (US Eastern Time). The RCMP has outlined 17 stipulations for the prospective repositories.

These requirements encompass the capability to process transactions involving the top 20 cryptocurrencies based on market capitalization and the scalability to accommodate emerging blockchains. Access to data for authorized users is also a pivotal aspect.

Pertaining to NFTs, the RCMP deems it crucial to allow for NFT ownership across Ethereum, Solana, and Polygon blockchains.

Essential features of the repository include stringent security measures like safeguarding private keys, a secure disposal process, and automated daily verification. Additionally, a native Android mobile application is set to be developed.

The RCMP, in collaboration with Canadian law enforcement, is observing an uptick in the employment of cryptocurrencies and digital assets, including NFTs, for illicit transactions.

Hence, there is a pressing need for the RCMP to have a secure mechanism to house these confiscated digital assets until the conclusion of legal proceedings. Establishing a centralized repository not only facilitates the seizure process but also bolsters security to avert asset theft during storage.

In a recent development, the Canada Financial Services Authority (OSFI) addressed the challenges linked with crypto assets by issuing two draft guidelines for managing regulatory capital concerning crypto asset risk.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.