Japan’s National Police Agency (NPA) To Finance Crypto Tracking Software For Monitoring Criminal Activity
The National Police Agency (NPA) of Japan is set to finance the innovation of an emerging software which will be instrumental in assisting to track criminals behind the illegal virtual asset transactions.
A news report from the NHK indicates that the agency will spend close to $135,000 next year in order to finance the development of the product. This will be done by outsourcing the technological advancement of the software to the private sector, which has the technical expertise to deliver the much needed product.
Software To Track The Course Of The Transaction
According to the agency, the software will be used in tracking the course of blockchain transactions which have been flagged as being doubtful. The tool will then envision and track down the people remitting or receiving the virtual asset.
The determinations of the NPA are as a result of the increase in the number of individuals who are suspected to be engaged in criminal activities in Japan, especially those that involve cryptocurrencies.
As a result of the unrecognizability of the blockchain dealings, the investigative security forces in the country have in the recent past faced several challenges even as they try to carry out investigations regarding cryptocurrency criminal activities.
Users’ Wallets Accounts Hacked Into
At the beginning of this year, in accordance with a yearly report which was issued by the agency, there were approximately 700 cases of supposed money laundering from virtual asset exchanges in Japan within eight months last year. The report confirmed that criminals stole virtual assets worth close to six million dollars from users’ wallets accounts within Japanese exchanges in 2017.
As a result, it became evident that the virtual asset industry in the country was severely affected. A very clear case in point was during the Coincheck exchange theft whereby investors lost approximately $520 million worth of cryptocurrencies.
Implementation Of Strong Regulatory Measures
This led to several calls for regulators in the country to implement stronger crypto anti-money laundering and security procedures in order to curb the runaway crime which was affecting the nation.