Canada Develops Digital Asset Repository to Combat Crypto Crime

• Canada is looking at building a robust repository to keep custody of digital assets, NFTs.
• This is one strategic plan to fight crimes in the nascent crypto ecosystem.

The rise of cryptocurrencies in recent years has created unprecedented prospects for innovation and financial inclusion. However, this quick expansion has attracted the interest of hackers and fraudsters, increasing crypto-related crimes.

To counter this emerging threat, Canada is taking a pioneering step to develop a secure digital asset repository aimed at combating rising crypto crime. The Royal Canadian Mounted Police (RCMP) and Shared Services Canada (SSC) announced the groundbreaking challenge earlier this week.  

Canada’s Innovative Approach

This challenge invites tech innovators to join forces and collaboratively devise a comprehensive plan for the development of a centralized digital asset repository, a visionary vault that goes beyond conventional storage facilities. 

This repository is intended to be capable of not just safely storing confiscated digital assets, but also of processing transactions across various cryptocurrency blockchains, all while maintaining powerful security measures to ward off possible breaches.

The RCMP has outlined an ambitious set of 17 demands for the creation of the centralized digital asset repository. These requirements encompass a wide spectrum of functionalities, reflecting the RCMP’s commitment to staying ahead in the rapidly evolving landscape of cryptocurrencies and NFTs.

The first desired outcome outlined by the RCMP is the ability to process transactions for the top 20 cryptocurrencies by market capitalization, as detailed on CoinGecko. This capability ensures the repository’s versatility in managing a diverse array of digital assets.

Recognizing the need for collaboration, the RCMP also aims to grant access to the repository’s data to authorized users, ensuring timely and secure access to critical information. Similar to blockchain scalability, RCMP highlighted that the repository must be equipped to onboard and support new NFT blockchains as the NFT ecosystem continues to evolve.

With a fixed deadline of September 21, 2023, developers are embarking on a race against time to craft a comprehensive proposal that aligns with the RCMP’s vision. Overall, a successful proposal might win its creators the opportunity to work on a project that could change the way law enforcement agencies manage and secure confiscated digital assets.

Canada Utilizes the Power of Blockchain to Combat Crime

Notably, Canadian law enforcement agencies recently have taken a significant step forward in fighting crypto crimes by integrating a specialized software from Chainalysis. This software empowers local police with the ability to trace blockchain transactions, identify suspects, and gain insights into the movement of funds.

While Canadian law enforcement harnesses cutting-edge technology to combat cybercrimes, shifts in crypto adoption among the general population have also been observed. Recent data indicated that the percentage of Canadians holding Bitcoin has decreased from 13.1% in 2021 to 10.1% in 2022.

Meanwhile, another recent report has also revealed that Canadian citizens are reluctant in adopting Central Bank Digital Currencies (CBDCs).

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