August 11, 2023

Canadian Police Seeks To Digital Asset Solution for Seizure of NFTs, Cryptocurrencies

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The Royal Canadian Mounted Police (RCMP) is searching for a digital asset solution that can assist in the seizure and storage of cryptocurrency and NFTs.

On August 10, a tender was announced for applications seeking a solution to store seized digital assets. The aim is to develop a centralized repository that would enable police officers to easily seize these assets while ensuring their security to prevent theft during storage.

The RCMP has listed 17 requirements that the future repository should meet. These include the capacity to handle transactions for the top 20 cryptocurrency blockchains based on their market capitalization, as well as the flexibility to support new blockchains in the future.

Moreover, the RCMP intends to provide data access to authorized users. Regarding NFTs, the RCMP deems it crucial to enable the storage of Ethereum, Solana, and Polygon-based NFTs.

The repository will have additional features to ensure security, including safeguarding private keys, implementing a secure disposal process, and performing daily automated verification. Additionally, a native mobile application for Android is currently in development.

Canadian law enforcement has recently adopted specialized software from Chainalysis to track cryptocurrency during investigations of cybercrimes. This software enables local police to trace blockchain transactions, identify suspects, and determine the deposit location of funds.

According to a study published by the Bank of Canada (BoC) on July 26, the ownership of Bitcoin and other cryptocurrencies decreased in the country in 2022. This decline is attributed to unfavorable market conditions and regulations that are not in favor of Canadian crypto investors.

The study said that the percentage of Canadians owning Bitcoin decreased to 9% by August 2022. However, there was a slight increase in BTC adoption, reaching 10% by the end of the year. It’s important to note that the drop in Bitcoin ownership doesn’t necessarily indicate that investors diversified their investments into other cryptocurrencies.

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