In recent news, the Royal Canadian Mounted Police is planning to experiment in the crypto space to facilitate regulation. Reportedly, the police is intending to seek digital asset solution to facilitate the seizure and storage of crypto assets and nonfungible tokens (NFTs).
According to a news posted by the police on Thursday, the police is seeking solution to accommodate the seized crypto assets and NFTs. To this, the authorities also opened a tender inviting applications for a solution to store digital assets.
In its official statement, the agency shed light on the benefits of adopting such a repository to facilitate their actions. The statement read:
The development of a centralized repository solution would allow police officers to seize these assets in a user friendly manner, while also offering significant security to prevent the theft of said assets during their storage.
Sources reveal the RCMP demands 17 requirements from the future repository. Among them is the ability to process transactions for the top 20 cryptocurrency blockchains by market capitalization and the scalability and feasibility to support new blockchains in the future.
Notably, the agency also intends to grant access to its data to users who are in need of it. As for NFTs, the RCMP has deemed it necessary to enable the holding of Ethereum, Solana and Polygon-based NFTs.
Additionally, other features that are to be included in the repository are security considerations, such as the protection of private keys, secure disposal process and daily automated verification. Following is a snap of Canada’s digital asset repository tender opened by the RCMP.
Troubled by increasing crimes around crypto assets in recent times, much like other regulators across the globe, Canadian agencies are retorting to various innovative measures. Recently, Canadian law enforcement agencies started using specialized software from Chainalysis to trace crypto while investigating cybercrimes.
This has given local police the ability to trace blockchain transactions, identify suspects and determine where funds have been deposited. Alarmed by the happenings in the sector, the Canadian regulators have looked up to stringent regulation of the sector followed by frequent guidelines to banks and insurers regarding crypto exposure.
Additionally, in the beginning of the month, the Canadian Securities Administrators (CSA), had issued a set of guidelines governing staking and lending services for the crypto firms to comply. Meanwhile, the number of Canadians holding Bitcoin has fallen from 13.1% in 2021 to 10.1% in 2022. Nonetheless, the government’s repository marks a major move for the nation and a step that could be followed by nations across the globe.