As the use cases for cryptocurrencies expand, tracking crypto-related crimes is becoming increasingly challenging. A recent report highlights that crypto crimes and investigations are growing more complex and resource-intensive compared to traditional criminal investigations. This underscores the vital role of public sector investigative agencies in combating crypto crime, emphasizing an urgent need for better staffing and technology in the crypto sector.

The Growing Focus on Crypto by Law Enforcement

Over the past decade, cryptocurrencies have become a focal point for law enforcement, regulatory, and military agencies worldwide. These agencies are tasked with mitigating crypto-related risks without entirely eliminating its usability. The report indicates that public sector employees generally view crypto positively. Respondents from Latin America and the EMEA (Europe, Middle East, and Africa) regions are optimistic about crypto’s role in financial markets, while those from the APAC (Asia–Pacific) region remain more skeptical.

Rising Concerns About Crypto-Criminal Activity

Participants in the survey anticipate a rise in crypto-criminal activity over the next five years, with investigations becoming more time-consuming. About half of the respondents expressed dissatisfaction with their agencies’ staffing and technical resources for investigating cryptocurrency-related crimes.

Perceptions of Cryptocurrency

According to the survey, over 50% of participants consider crypto a legitimate form of currency, with the EMEA region showing the highest approval at 72.4%. However, many believe that crypto is predominantly used by bad actors, especially in the APAC region, where 67.7% share this view.

“These illicit use cases extend beyond the forms of cybercrime we typically think of as crypto-native, such as ransomware and darknet markets, and include everything from intellectual property crime to conventional drug trafficking,” the report stated.

Despite these concerns, many still believe in crypto’s potential for adoption and its impact on traditional finance systems, particularly in Latin America, where economic challenges are driving financial innovation.

The Role of Crypto in Investigations

Most survey participants acknowledged the importance of crypto in their investigations across various sectors. However, there were notable differences in self-perceived expertise, with APAC respondents expressing less confidence than those in EMEA.

“Sub-national tax authorities report the highest instance of cryptocurrency artifacts in their investigations at 45.3%,” the report noted. “Military and defense agency respondents report the lowest rate at 19.0%, likely reflecting their primary focus on different types of threats and criminal activities.”

The Need for More Resources

Despite varying levels of expertise, respondents agreed on the necessity of additional resources for public sector agencies dealing with crypto investigations. The report argues that crypto-related cases generally take longer to resolve compared to traditional financial and non-financial crimes.

Respondents reported encountering a wide range of crypto use in fraud, scams, cybercrime, and drug-related offenses, with the EMEA region noting the highest level of incidence.

“Overall, more than half of all respondents said they were either extremely dissatisfied or somewhat dissatisfied with their agency’s staffing resources available for crypto investigation,” the report stated.

U.S. respondents were generally satisfied with training opportunities but less so with staffing and technical resources.

Recommendations for Improvement

To address these challenges, the survey suggested that agencies should:

  • Increase staffing dedicated to cryptocurrency investigations
  • Develop specialized training programs
  • Invest in technology to aid investigations
  • Build partnerships with private sector organizations

The survey included responses from over 800 public sector employees worldwide. APAC respondents accounted for 44.3% of all participants, North America had 18.1%, and EMEA had 10.4%. About one-quarter of respondents declined to share their location.

For more insights and updates on the evolving landscape of cryptocurrencies, investing, and finance, stay tuned to Global Crypto News.

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