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Law enforcement’s battle against Cryptocurrency crime

Cryptocurrencies have been used for illicit activities, such as drug dealing, arms trafficking, funding terrorism, and money laundering. Between 2017 and 2021, criminals laundered over $10 billion worth of cryptocurrency. Tax evasion has also surged with crypto’s rise, potentially costing the Internal Revenue Service upwards of $25 billion annually. Law enforcement agencies worldwide have an urgent task ahead: to develop robust mechanisms to combat these illicit uses while supporting the technology’s legitimate growth. Challenges for law enforcement in investigating cryptocurrency crimes include collaborating with international counterparts, identifying individuals from Bitcoin addresses, and rapid technological evolution. However, the Blockchain offers several advantages to law enforcement, such as tracing all transactions associated with a particular Bitcoin address and functioning as a permanent repository for all data. The Blockchain is intentionally designed to be open and accessible to all, eliminating the need for legal procedures to access its data.

Key Points:
– Cryptocurrencies have been used for illicit activities, including drug dealing, arms trafficking, funding terrorism, and money laundering.
– Law enforcement agencies worldwide have an urgent task ahead: to develop robust mechanisms to combat these illicit uses while supporting the technology’s legitimate growth.
– Challenges for law enforcement in investigating cryptocurrency crimes include collaborating with international counterparts, identifying individuals from Bitcoin addresses, and rapid technological evolution.
– The Blockchain offers several advantages to law enforcement, such as tracing all transactions associated with a particular Bitcoin address and functioning as a permanent repository for all data.
– The Blockchain is intentionally designed to be open and accessible to all, eliminating the need for legal procedures to access its data.

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