Chainalysis plans to work with more law enforcements and "scale this concept globally."
The Western Canada Cryptocurrency Investigations Centre, launched on April 12th, is a result of a collaboration between blockchain data firm Chainalysis and the Calgary police department.
The joint task force aims to address the growing issue of cryptocurrency-related crime in the region.
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In a blog post, Calgary Police Service Chief Constable Mark Neufeld celebrated the partnership by stating:
We are thrilled to be part of an innovative partnership with Chainalysis where cybersecurity expertise is shared amongst the Calgary Police Service and private enterprise. This unique partnership will help strengthen cybersecurity and safety among residents of Calgary, Alberta and Canada.
The center seeks to expand upon current efforts in combating the rising cryptocurrency crime rates in Western Canada.
The partnership with Chainalysis will assist the Calgary police department in improving its investigator training programs and equipping officers with 24/7 case support. Chainalysis ultimately aspires to “scale this concept globally, working with law enforcement personnel around the world to offer bespoke, customized offerings depending on the unique needs of the region at hand.”
When talking about the matter, Chainalysis Co-founder and CSO Jonathan Levin noted:
This demonstration of public-private partnership to solve novel issues in financial services is a model that the rest of the world can learn from. <...> It is a first step in our work to enable law enforcement partners across the world to protect their constituents, and in turn, help build trust in blockchain technology.
The surge in criminal activity has been linked to the rapid adoption of cryptocurrencies in the country.
According to Chainalysis, engagement with crypto ATMs, decentralized and centralized exchanges in Canada has increased by nearly 213% since 2019. This growth peaked in May 2021, with a staggering 865% increase compared to March 2019, largely fueled by interest in decentralized finance (DeFi).
However, this rise in adoption has been accompanied by a significant increase in crime. In 2022 alone, more than $41 million in funds were lost to cryptocurrency scams in Canada. Chainalysis also disclosed that “for every 1,000 Canadians, there was at least CAD 1,144 in total exposure to illicit crypto activity” during the same time frame.
However, while Canada is ramping up its efforts to protect crypto investors, firms like Paxos and OKX are leaving the country.
