Blockchain technology can be of immense help to law enforcement agencies. The transparency and traceability features of this technology are a boon for investigators, police, and cybercrime experts. The analytical tools of blockchain technology can fundamentally change how law enforcement agencies deal with criminals. Therefore, it will not be an exaggeration to suggest that this technology can bring relief to many places affected by high rates of crime.
The potential of Blockchain Technology
Blockchain technology is not completely immune from all forms of cyber attacks. There have been some setbacks. However, law enforcement agencies are improvising to make blockchain more efficient and make the crypto industry more compliant and safer. Here are some of the examples that briefly elucidate the potential of blockchain technology.
Blockchain Technology Helps Tracking and tracing funds
Some law enforcement agencies are already utilizing blockchain to remain ahead of criminals in matters of tracing and tracking fund flows. The tracking and tracing activities have the potential to avert major financial scams that keep happening online. It can make the work of investigators easier if there is sufficient collaboration across different agencies and governments.
Blockchain Technology Protects Anonymity
Blockchain technology protects the anonymity of its users and the same rule is applicable for all kinds of users. Tracking and dealing with crime is a risky affair for most police and other law enforcement agencies. Therefore, by using this technology, they can remain pseudo-anonymous and unleash their potential anonymously in matters of investigations, policymaking, and compliance.
Blockchain Technology Helps in Real-time Responses
In modern times, online financial crimes are challenging for most law enforcement agencies. This is because the perpetrators often have high degrees of technical knowledge and can create significant jurisdictional problems. Jurisdictional problems cause delays and lower the chances of fund recovery. For instance, they often hack from place A, but their victim is from place B, but their organization may operate from place C. Blockchain can minimize this problem by improving real-time incident response. Hence, it can help track the source of funds and raise alarm bells for any suspicious transactions. Therefore, it can track down ransomware payments, identify the location of perpetrators, and recover assets faster.
Clustering of Transactions and Mapping
Analytical techniques and tools can easily cluster transactions taking place from related wallets. The technology can also provide clear visualizations and illustrate the relationships between the individual wallets and the clusters. Therefore, police can easily use this tool to monitor any suspicious activity. The foremost advantage is that it can track down money laundering activities.
Ways in Which Blockchain Technology Can Help
Blockchain technology can help in several law enforcement activities and may eventually play a lead role in bringing down crime rates and avert dangerous financial cyber crimes.
- Supervise transactions in real-time and analyze suspicious patterns beforehand.
- Pinpoint exchange accounts dealing with crimes and request quick account freezing
- Uncover extra wallets linked with confiscated assets to improve recovery efforts
- Subpoenas can be issued with transaction details and wallet addresses
- Trace funds linked with DeFi protocols
- Analyze cross-border fund flows
- High-risk exchanges can be effectively monitored
Also Read- Advantages of Cryptocurrency In the Retail Sector
Conclusion
Blockchain technology can help law enforcement agencies in risk management, crime investigation, and better compliance. The analytical tools can also stop threats, raise domain awareness, and solve many mysterious cyber crimes. However, the full-fledged utilization of this technology in the area of law enforcement requires a significant amount of state support because dealing with crime is a state subject. Thus, it is also worth noting that the governments have the responsibility to frame laws related to decentralized finance.
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