Japanese police is preparing a tracking system of cryptocurrency transactions
The Japanese national police will implement a system for tracking the flow of cryptocurrency transactions to facilitate investigation involving digital currency crimes.
According to the Yomiuri Shimbun, 30 August, the National police Agency of Japan (NPA) has announced that it “has created a road map for policy implementation in the next fiscal year, with the aim to visualize the transaction history of virtual currencies amid growing money-laundering, massive thefts and other crimes in the cryptocurrency field.”
“Traditionally, many crimes relating to digital currency, include transactions through multiple accounts,” noted the news outlet Fisco, which also writes that police “in the process of investigation need to track an enormous amount of records”. Further, the publication States:
Services restricted to the main cryptocurrencies — bitcoin and Ethereum. It is expected that the National police Agency, the Central police Committee of the Tokyo police Department of the Prefecture of Osaka will allow the new system to earn in the next fiscal year.
According to Nikkei, the National police Agency was asked to allocate in 2019, approximately 2.7 billion yen ($24.3 million) to the fight against cybercrime., including crimes related to cryptocurrencies. The Agency intends to pledge to the budget of approximately 35 million yen ($315 203) for expenses in connection with the installation, which “is able to extract transaction data, necessary to investigate, from a vast array of data.” Including allegedly talking about, “missing in the databases of the blockchain”.
The Agency representatives of the national police for their part say that the system will help to quickly and efficiently investigate crimes in the sphere of cryptocurrency — fraud and money laundering.
In February, the Agency reported that from April to December, the government received from cryptocurrency exchanges reports of 669 cases of “suspicious transactions”. In March, the Agency introduced the annual statistical report on the cryptocurrency, which reflects the 149 cases of hacker attacks on individual cryptocurrency accounts last year. The total damage caused unauthorized transfers of funds made 662,4 million yen (about $5 965 441). The funds were stolen 16 companies, including cryptocurrency exchanges and three of the service wallets.