Crypto-Related Crime Surges in APAC, Report Highlights Need for Enhanced Resources
Summary:
The "2024 State of Cryptocurrency Investigations Report" by Chainalysis indicates a marked rise in crypto crimes in the Asia-Pacific (APAC) region, coinciding with a perceived deficit in legal resources. Security agencies struggle to combat crypto-related offenses due to inadequate staffing and affinity with the subject. With the majority of APAC survey participants viewing cryptocurrency negatively - a sharp contrast to Latin America and Europe - enhanced technical resources and education is needed.
Chainalysis's "2024 State of Cryptocurrency Investigations Report" shows that there's a noted boost in crypto-related crime in the Asia-Pacific (APAC) area. This surge in illicit activities aligns with a speculated deficit in legal aids, affecting the region’s ability to counter and handle crypto crime threats effectively. “Over the next five years, a wider variety of criminal activities will involve cryptocurrency,” respondents shared. This was according to a pie chart from Chainalysis presenting public sector agency responses.
In a discussion with Cointelegraph, Chainalysis’s Principal Solutions Architect, Hayato Shigekawa, communicated:“As crypto is increasingly recognized as an asset class by the public sector, it is also emerging as a conduit for all types of crime, going beyond just crypto-related crime. This is amidst the growing belief in crypto’s capacity to revolutionize finance.”
Despite the escalating urgency of crypto crime investigations, law enforcement in APAC finds it hard to grapple with the increasing wave of crypto-related violations like drug trafficking, cybercrime, and intellectual property crime, chiefly due to the insufficiency of the current legal resources. Shigekawa stated to Cointelegraph:“While Japan faces legal constraints in the forefeiture of digital assets, Singapore allows the seizure of digital assets, including cryptocurrencies. However, having cutting-edge solutions to assist onchain investigations and comprehensive training programs is as significant as such legal structures.”
Survey participants from APAC tended to have a less favourable stance toward cryptocurrency compared to other parts of the world. “About 67.7% of APAC respondents agreed, either strongly or slightly, that cryptocurrency is primarily utilized by criminals and malicious actors.” This bleak assessment becomes all the more evident when juxtaposed with the more sanguine outlooks reported in regions like Latin America, Europe, the Middle East, and Africa.
Amid the prevailing adverse view of digital currency in APAC and dissatisfaction with staffing and legal resources, it becomes imminent to enhance technical resources and accessibility to educational materials. Many respondents admitted to being "not very knowledgeable about the asset class." Shigekawa noted: “The data suggests a distinct need for advanced technical resources, especially in Latin America and APAC. It is vital to invest in advanced technology to bridge the gaps that respondents feel are impacting their effectiveness.”
Published At
6/20/2024 4:00:00 PM
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