EUROPOL Spots Tools to Combat Crypto and Blockchain Technology Crimes

EUROPOL Spots Tools to Combat Crypto and Blockchain Technology Crimes

Crimes involving digital currency are likely to increase as more people use cryptocurrency. Europol has acknowledged that blockchain technologies offer authorities a new avenue for combating digital crime. Europe’s law enforcement agencies also claim they can help investigate money laundering networks.

Understanding Cryptocurrencies Is Critical for Combating Organized Crime

With cryptocurrency users expanding across borders and industries, new forms of digital crime, such as increased hacking and money laundering are emerging, according to the European Union Agency for Law Enforcement Cooperation (Europol), following a recent meeting with crypto experts, financial investigators, regulators, and business representatives.

The 6th Global Conference on Criminal Finances and Cryptocurrencies was held recently at the headquarters in the Netherlands. The two-day event was supported by the Basel Institute on Governance through the joint Working Group on Criminal Finances and Cryptocurrencies and meant to boost collaboration among participating members in investigating and prosecuting crypto-related crimes.

Speakers also noted that when employing the right tools, blockchain technologies can "offer an unprecedented opportunity to investigate organized crime and money laundering networks to recover stolen funds," Europol said in a press release. It emphasized that increasing understanding and capacity in the crypto sector is vital to tackling crime and the laundering of illicit money.

"Law enforcement, regulatory bodies, and the private sector are working hard to stay ahead of those who try to abuse crypto assets," Europol remarked. The agency highlighted the tightening of EU legislation with upcoming rules designed to ensure that digital currencies like bitcoin receive the same treatment as other assets in the context of money-laundering prevention. "This is also easing the seizure and management of crypto funds," the police authority added.

Europol further pointed out that investigators are taking advantage of blockchain-based technology to follow money flows, which has allowed them to identify not only scammers and hackers but also to expose more "traditional" crime groups and money laundering networks. "Private companies are innovating fast to provide the tools and analytical capacity to trace funds laundered across multiple blockchains using different obfuscation techniques," the agency said.

The latest edition of Europol’s crypto conference was attended by over 1,700 participants from 119 nations, with speakers representing EU institutions such as the European Parliament, crypto service providers like Binance, the world’s leading digital asset exchange, blockchain forensics, and asset recovery companies, including Chainalysis, alongside law enforcement officials from several European and other countries like the United States and South Korea.

The event follows important developments toward regulating Europe’s crypto space. This summer, key EU institutions, and member states made a deal on the Markets in Crypto Assets (MiCA) regulatory package after reaching an agreement to adopt a set of anti-money laundering rules for cryptocurrency transactions.