Canada to create crypto and NFT seizure repository.
Canada to create crypto and NFT seizure repository.
The Royal Canadian Mounted Police Seeks Digital Asset Solution
The Royal Canadian Mounted Police (RCMP) is taking steps to address the challenges posed by the seizure and storage of digital assets, including cryptocurrencies and non-fungible tokens (NFTs). To this end, they have opened a tender seeking a digital asset solution that will enable the secure seizure and storage of these assets. The RCMP aims to develop a centralized repository solution that offers user-friendly and secure storage for seized digital assets[^1^].
The RCMP has identified 17 specific requirements for the future repository. These requirements encompass a range of considerations, including the ability to process transactions for the top 20 cryptocurrency blockchains by market capitalization and scalability to support new blockchains that may emerge in the future. Additionally, the RCMP intends to grant access to its data to authorized users who require it. In terms of NFTs, the repository must have the capability to hold Ethereum, Solana, and Polygon-based NFTs[^1^].
One can compare the RCMP’s digital asset repository to a fortified bank vault. Just as a bank vault securely stores physical assets, the repository will securely store digital assets. This is critical because, unlike traditional forms of currency, cryptocurrencies and NFTs exist solely in the digital realm. Therefore, it is essential to have a robust and secure solution to prevent theft and ensure the integrity of seized digital assets[^1^].
The repository will include several important features to enhance security and functionality. One such feature is the protection of private keys, which are the cryptographic keys that provide access to digital assets. The repository will employ rigorous security measures to safeguard these keys and prevent unauthorized access. Additionally, a secure disposal process will be implemented to ensure that seized assets are properly disposed of when necessary. To maintain the integrity of the repository, daily automated verifications will be conducted to identify any potential vulnerabilities[^1^].
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To further enhance accessibility and usability, a native mobile application will be developed for Android devices. This will enable authorized users to access the repository and carry out necessary transactions conveniently and securely. Overall, the RCMP’s goal with this digital asset solution is to provide a centralized and secure platform that meets their specific requirements while ensuring user-friendly access for authorized individuals[^1^].
In recent years, law enforcement agencies around the world have faced the challenge of tracing digital assets linked to criminal activities. The RCMP’s initiative to develop a digital asset repository aligns with a broader trend in which authorities are seeking to leverage blockchain technology to enhance their investigative capabilities. By using specialized software like Chainalysis, the RCMP now has the ability to trace blockchain transactions, identify suspects, and determine where funds have been deposited. This type of technological advancement strengthens the ability of law enforcement agencies to combat cybercrimes effectively[^2^].
While the RCMP strives to create a secure repository for digital assets, it is worth noting that the popularity of cryptocurrencies among Canadians has seen some fluctuations. According to recent data, the percentage of Canadians holding Bitcoin (BTC) declined from 13.1% in 2021 to 10.1% in 2022. This decline could be attributed to various factors, such as market volatility, regulatory uncertainties, or evolving investor sentiment. Nevertheless, the RCMP’s digital asset repository remains an important development that addresses the evolving landscape of digital assets and law enforcement[^2^].
In summary, the Royal Canadian Mounted Police is pursuing a solution to effectively seize and store digital assets through the development of a centralized repository. This repository will provide a secure environment for storing cryptocurrencies and NFTs, with features like protection of private keys, secure disposal processes, and daily automated verification. Furthermore, a native mobile application will be developed to enhance accessibility. With this digital asset solution, the RCMP aims to bolster its ability to combat cybercrimes and adapt to the changing dynamics of the digital asset landscape[^1^][^2^].
References: [^1^]: “The Royal Canadian Mounted Police (RCMP) is seeking a digital asset solution,” Cointelegraph, source [^2^]: “Canadians have ‘weak incentives’ to use a CBDC: Bank of Canada,” Magazine: Deposit risk. What do crypto exchanges really do with your money?, source
