- Investigators can take advantage of crypto’s benefits in unearthing the immutable proof of transactions stored on the blockchain by resourcing it specifically, but federal law enforcement often has the resources and knowledge. This means that local law enforcement is no longer in charge of crypto-related offenses, resulting in a massive backlog at the federal level.
- Investors may not treat cryptocurrency with the same caution they would their pensions or other investments, and there is little governmental control globally. As a result, a simple splash page or message on a forum might easily lead a large number of new investors into fraud.
- Better education is required. Better education at all levels, from law enforcement training to legislators and regulators. Investigations will be aided by knowledge exchange across the crypto industry.
To actually make a difference and enable greater crypto mainstream acceptance, law enforcement, along with regulators and legislators, must be properly educated. When things get rough — as they did during the pandemic — enterprising human nature kicks into high gear. Individuals are searching for better approaches to bring in cash. That could be one of the reasons why cryptocurrencies have been so popular in recent years, thanks to a big number of people sitting at home wondering how to battle low-interest rates and growing inflation.
A New Way Of Enforcing The Legislation
However, where there is money, there are criminals. Bad actors are specialists in human behavior, and they perceive rising crypto traffic and building momentum as a tremendous opportunity, knowing that many newer investors will not do their homework. Investors may not treat cryptocurrency with the same caution they would their pensions or other investments, and there is little governmental control globally. As a result, a simple splash page or message on a forum might easily lead a large number of new investors into fraud.
We’ve also observed an uptick in scams related to the pandemic, such as posing as a seller of fake drugs, vaccinations, or tests, or offering business loans and grants, all of which have a crypto component, and law enforcement is having to react quickly to these new dangers. As a result, officials tasked with protecting consumers face an increasing headache. We also hear from the crypto community that regulation is frequently behind the times and unfit for purpose.
Better education is required. Better education at all levels, from law enforcement training to legislators and regulators. Investigations will be aided by knowledge exchange across the crypto industry. Also, the resources and desire to develop wiser regulations that will protect consumers while also providing the industry with the certainty it requires to continue to innovate and thrive.
Decreasing The Time It Takes For New Regulations To Take Effect
To satisfy the needs of a crime involving digital assets, centuries-old investigative procedures require more than adaptation. As new sorts of criminality emerge, the crypto sector owes it to law enforcement to quickly educate all members of the public about this new environment. In comparison to law enforcement, the majority of crypto players are youthful digital natives. Cryptography may be strange, threatening, or perplexing to the vast majority of officers around the world, making them hostile to the technology. This has ramifications since law enforcement is frequently the first on the scene of a crime, gathering evidence pursuant to a search order.
But, for example, would they know where to look for a Bitcoin wallet? How can you police a crime if you don’t comprehend it? The greatest challenge, after education, is obtaining resources. Crypto crime is considered a subset of cybercrime in the United States, similar to ransomware. Investigators can take advantage of crypto’s benefits in unearthing the immutable proof of transactions stored on the blockchain by resourcing it specifically, but federal law enforcement often has the resources and knowledge. This means that local law enforcement is no longer in charge of crypto-related offenses, resulting in a massive backlog at the federal level.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/04/30/making-cryptocurrencies-more-mainstream-via-enhancing-global-cryptocurrency-crime-investigations/