Benzinga - Canadian authorities have adopted advanced software tools to track cryptocurrency transactions in their efforts to combat cybercrimes.
This new capability enables the police to monitor blockchain activities, pinpoint potential culprits and ascertain the final destinations of funds.
The Lethbridge Herald newspaper reported local law enforcement agencies have gained access to the Chainalysis Reactor software.
This tool facilitates the tracking of cryptocurrency right from its source to its eventual deposit on a trading platform.
Once the software identifies the specific exchange involved, the police can then solicit details about the account holder and further transaction records to determine the subsequent movement of the cryptocurrency post-exchange.
An officer, who has undergone training in blockchain analysis, highlighted the game-changing nature of this software. He pointed out that prior to its introduction, Canadian agencies often "used to run into a roadblock" when they identified scams involving digital currencies.
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The collaboration between Chainalysis and the Calgary Police Service was initiated in April 2023.
At that time, the unveiling of the Western Canada Cryptocurrency Investigations Centre took place, with its primary focus being on blockchain-related crimes.
In Chainalysis's 2022 Global Crypto Adoption Index, Canada secured the 22nd position, showing an improvement from its rank of 26 in 2021 and 24 in 2020.
The same report indicated that for every group of 1,000 Canadians, there was an exposure of at least $1,144 Canadian dollars to unlawful crypto activities.
Additionally, a report from the Bank of Canada in August highlighted a downward trend in cryptocurrency ownership in the nation.
By the close of 2022, only 10.1% of Canadians possessed Bitcoin (CRYPTO: BTC), a decrease from the 13.1% recorded in 2021.
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