As the use of cryptocurrency continues to grow, so does the prevalence of crypto-related crimes, making them increasingly difficult to investigate and track, according to a recent report. The report highlights the importance of public sector investigative agencies in combating crypto crime and emphasizes the urgent need for enhanced staffing and technological resources in this area.
In the past decade, law enforcement, regulatory bodies, and military agencies worldwide have increasingly focused on cryptocurrency. These agencies are responsible for managing the risks associated with crypto while also ensuring its continued usability. The report indicates that the focus on crypto-related crimes will only intensify in the future.
The survey conducted as part of the report revealed that public sector employees generally have a positive view of cryptocurrency. Respondents from Latin America and Europe, the Middle East, and Africa (EMEA) are optimistic about the role of crypto in financial markets, while those from the Asia-Pacific (APAC) region are more skeptical.
Participants in the survey anticipate a rise in crypto-related criminal activities over the next five years. They also expect investigations to become more time-consuming and challenging. Additionally, about half of the participants expressed dissatisfaction with the staffing and technical resources available for investigating cryptocurrency-related crimes within their agencies.
While more than 50% of the survey participants view cryptocurrency as a legitimate form of currency, there is a widespread belief that crypto is predominantly used by criminals. This belief is particularly strong in the APAC region, where nearly 68% of respondents share this perspective. The report notes that illicit crypto use cases encompass a wide range of criminal activities beyond traditional cybercrime, such as intellectual property crime and drug trafficking.
Despite concerns about criminal misuse, many respondents acknowledge the potential of cryptocurrency to drive innovation in traditional financial systems, especially in regions facing economic challenges like Latin America.
The survey findings also highlight the importance of cryptocurrency in investigations across various sectors. While most participants recognize the significance of crypto in their investigative work, there are differences in perceived expertise, with respondents from the APAC region expressing less confidence compared to those from EMEA.
One key recommendation stemming from the report is the need for additional resources to support public sector agencies in conducting effective crypto investigations. Respondents emphasized that crypto-related cases typically take longer to resolve compared to traditional financial and non-financial crimes. They cited a wide range of crypto use in fraud, scams, cybercrime, and drug-related offenses, underscoring the need for more resources to address these diverse criminal activities.
In response to the challenges identified, the survey suggests that agencies increase staffing dedicated to cryptocurrency investigations, provide specialized training programs, invest in technology to support investigations, and establish partnerships with private sector organizations.
With input from over 800 public sector employees worldwide, the survey reflects a global perspective on the growing importance of addressing crypto-related crimes and the need for enhanced resources and expertise in this area.