Spain, Dubai and the United States are investing in blockchain technology to fight cryptocurrency

The number of criminals who use cryptocurrencies to hide poorly obtained money is increasing. According to Chainalysis’ 2022 Crypto Crime Report, $ 8.6 billion in cybercrime laundered cryptocurrencies in 2021, a 30 percent increase from the previous year. Fortunately, law enforcement agencies are wiser to these activities. Some countries even resort to blockchain-based technology to outwit these tech-savvy offenders and crack down on their businesses.

Today, for example, the Spanish police officially announced that they would use funds to distribute blockchain-based crypto-surveillance technologies to tackle the growing drug trade in the Strait of Gibraltar. They claim that crypto is widely used to finance drug trafficking in these waters that connect Spain with Morocco and Gibraltar.

The Spanish force has spent $ 115,000 on acquiring two blockchain analysis tools to help them identify suspicious transactions. Police have said that the increasing use of crypto to fund these illegal activities makes it difficult for them to track payment routes. This is because cryptocurrencies allow criminals to remain anonymous while shopping.

The Ministry of the Interior has also commented on the matter and says it has great faith in constantly upgrading the monitoring tools and the supporting technological systems. Many believe this may indicate additional spending on crypto-surveillance systems in the country.

Cryptocurrencies have begun to capture the attention of law enforcement agencies around the world. Central banks and governments have been calling out these threats unequivocally for a long time. In February 2022, Pablo Hernandez de Cos, Governor of the Bank of Spain, stressed the need for increased monitoring of cryptocurrencies. One of the concerns he cited at the time was “the risk derived from the possible use of cryptocurrencies for illegal activities, including money laundering.”

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Around the same time, the FBI also announced the launch of a new cryptocurrency unit. Known as the National Cryptocurrency Enforcement Team (NCET), this new working group will conduct its own blockchain analysis to track and seize assets involved in cryptocurrency. According to an official press release, the team will also focus on ransomware, cryptomixers, tumblers and other infrastructure that may allow “criminal misuse of cryptocurrencies”.

One month later, during the World Police Summit, the cybercrime unit of the UAE’s Dubai Police also followed suit, announcing that it would use the capabilities of blockchain technology and artificial intelligence (AI) to identify criminal activities.

“Technology is changing the world, and the police are part of this change. We are constantly looking at the latest technologies to crack down on crime. Sometimes cryptocurrency is used for money laundering and crime, so the Dubai police are monitoring in cooperation with the Interior Ministry,” said Brigadier General Dr. Saleh Al Hamrani, Deputy Director General of Excellence and Entrepreneurship at Dubai Police.

He added that AI would also help the police force to anticipate and predict future incidents and outcomes. “We will work with the next generation of AI technology to help predict how and what are the risks we will face, so that we are clear both internally and externally. The use of artificial intelligence, blockchain and the ability to predict will help build a solid foundation to get the police to prepare and also improve the response and recovery time, “he went on to explain.