September 24, 2022

Europol Believes Blockchain Tech Can Help Tackle Crypto Crime

Europol (the European Union Agency for Law Enforcement Cooperation) has acknowledged the high crime rate in the crypto industry. However, it believes that blockchain technologies can be used to combat crypto crime.

Europol Hammers On The Need To Understand Crypto First

Cryptocurrency usage has increased over the recent year across various industries and countries. However, there has been an increase in the crime rate and money laundering using cryptocurrency.

Recently, Europol had a meeting with financial investigators, crypto experts, regulators, and other representatives. This was the 6th Global Conference in the Netherlands on Criminal Finances and Cryptocurrencies. 

According to the law enforcement agency, it is taking steps to monitor and reduce such crimes. The aim of the meeting was to boost partnership among various participants and prosecutors in fighting crypto-related crimes.

The event received super from the Basel Institute on Governance and other stakeholders. Speakers at the meeting stated that blockchain tech could help the agency to investigate money laundering and organized crime.

Europol, however, emphasized that it is important to understand the crypto sector. This would help to tackle crime and money laundering using cryptocurrency. 

According to the agency, regulatory bodies, the private sector, and law enforcement agencies are working to stay ahead of criminals abusing crypto assets.

EU Regulations To Help Combat Money Laundering Using Crypto

Meanwhile, Europol stated that the European Union is also tightening regulations for the crypto sector. Upcoming rules would ensure that digital currencies like BTC face similar standards as fiat currency.

These rules will reduce the usage of crypto for money laundering. It would also give the agency the power to seize and manage crypto funds.

Furthermore, Europol stated that investigators and regulators are capitalizing on blockchain-based technology. This allows regulators to monitor the flow of funds and consequently identify hackers, scammers, and many laundering groups.

Private firms are working fast to develop analytical tools and technologies. This would allow regulators to trace money laundered across various blockchains using obscure techniques,” Europol added.

The agency’s crypto conference recorded an attendance of about 1,700 participants from over 119 nations. Speakers from EU institutions like the EP (European Parliament), crypto firms like Binance, blockchain forensics firms like Chainalysis, and other officials were in attendance. 

The recent event follows important developments in Europe towards regulating crypto space. Lately, key EU bodies and member nations have agreed on the MiCA (Markets in Crypto Assets) legislation.

The bill contains AML (anti-money laundering) for crypto transactions and reporting of crypto crimes.

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