Blockchain analysis company Chainalysis has unveiled a new program that will allow it to monitor all the assets that were seized from criminal operations. Analysts have emerged to claim that these assets are likely to include cryptocurrencies such as bitcoin, Ethereum and other mainstream digital tokens.
Chainalysis Seeks to Make Things Simpler for Regulators
Over the last few years, the crypto space has come a long way, establishing itself as a serious contender in the world of finance. Many institutions have come forward to get their fingers on crypto, and the price of bitcoin has shot up more this year than it has in the past three years, so to say things are going well would be something of an understatement.
At the same time, the crypto space is still heavily subjected to crime and illicit behavior thanks to the lagging regulatory tactics enforced by governments around the world. As the crypto space is still largely a developing arena, there aren’t that many rules flowing in or out of the space, and several bad actors have sought to utilize the space for their own selfish and greedy desires.
Thus, many assets have been stolen in the past, and Chainalysis is looking to step in to make sure that all currencies seized by the US government and beyond remain within their relative accounts. As it turns out, the idea of seizing crypto assets isn’t as easy as one might think. Should the criminal activity involve standard bank accounts, for example, they can quickly and easily be frozen.
With cryptocurrency accounts, the situation is a bit different. Typically, funds cannot be tampered with or seized until an investigation is complete, which means that currencies can potentially be moved around if a criminal believes he’s under suspicion or he’s been caught. Chainalysis is looking to step in and make the process a little simpler for regulators.
In a statement, the company explained:
When law enforcement discovers and investigates illicit cryptocurrency assets, they need to seize and store them until they can be legally forfeited. As such, government agencies and insolvency practitioners – licensed professionals who advise on insolvency matters – need a safe way to track, store and ultimately sell seized cryptocurrency assets for fiat currency.
Furthermore, the enterprise has also announced plans to partner with a firm known as Asset Reality to provide clients with advisory services that will show them how they can initiate the sale of seized funds. They will also offer courses to better train agents tasked with handling situations involving crypto.
Trying to Make Things Safer
Jason Bonds – CRO of Chainalysis – mentioned in an interview:
As cryptocurrencies become more mainstream, they will increasingly be used by good and bad actors alike. Chainalysis is dedicated to building trust in digital assets, and that means helping to detect and investigate illicit activity.