Canada Employs Chainalysis Software to Combat Crypto Crimes

While investigating cybercrimes, Canadian law enforcement has begun utilizing specialized software to track cryptographic data.

Police can now track blockchain transactions, identify suspects, and locate where funds have been deposited.

Local police revealed to the Lethbridge Herald that police forces already have access to the Chainalysis Reactor software.

The program aids in tracing cryptocurrency from its source to the moment it is deposited on an exchange.

Once the trace identifies the platform, law enforcement can request the account holder’s information and transaction history to determine where the cryptocurrency was sent after the exchange.

One of the officers trained as a blockchain analysis investigator emphasized the significance of the software, which took the police’s work with crypto crimes to a new level previously, agencies across Canada “ran into a brick wall” after discovering a digital asset deception.

In April of 2023, Chainalysis and the Calgary Police Service formed a partnership.

Back then, the corporation announced the establishment of the Western Canada Cryptocurrency Investigations Centre, which specialized in blockchain related crimes.

In Chainalysis 2022’s Global Crypto Adoption Index, Canada ranked 22nd, up from 26th in 2021 and 24th in 2020.

According to Chainalysis, there was at least $1,144 in total exposure to illicit crypto activity for every 1,000 Canadians in the same year.

The Bank of Canada reported a decline in Bitcoin and cryptocurrency ownership in the country in August. By the end of 2022, 10.1% of Canadians will own Bitcoin, a decrease from 13.1% in 2021.