Identification and training of investigative agencies are important to counter the darknet ── Survey report commissioned by EU | coindesk JAPAN | Coindesk Japan

A European Commission-funded investigative report finds regulators must step up identity checks for cryptocurrency exchange users to combat the rise in illegal drug purchases on darknet marketplaces. say it’s important.

The report was commissioned by the European Union’s body, the European Monitoring Center for Drugs and Drug Dependence, calling on EU lawmakers to step up anti-money laundering checks on cryptocurrency transactions. , and points out that it is more effective to enhance the training of investigative agencies than to completely ban it.

“It is important that countries around the world implement the Financial Action Task Force’s recommendations to help users of exchanges, brokers and ATMs identify illicit gains as they are being cashed,” it said.

Authored by Kim Grauer and Eric Jardine, research directors of blockchain analytics firm Chainalysis, the report suggests that the use of darknet marketplaces has also helped law enforcement efforts. However, it is said to be rising. Chainalysis, a blockchain research platform that provides blockchain analytics solutions to regulators, has signed a multi-million dollar contract with a US government agency.

A complete ban on cryptocurrency usage would do little to curb darknet activity, and a police-led shutdown like Hydra in 2022 would only be effective in the short term as alternatives emerge soon. The report says there are no But investigators can also improve their response capacity, he said.

Law enforcement “needs training on the technologies employed and on the new investigative technologies required to conduct these types of investigations,” the report said, adding that the use of encrypted platforms and cryptocurrency skills such as tracking and seizure methods.

EU lawmakers are set to vote next week on groundbreaking new licensing rules in the crypto space. The rules also include verifying the identity of users transferring funds. The European Parliament has also called for caps on anonymous crypto trading as part of its anti-money laundering measures.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: EU-Funded Report Calls for Crypto ID Checks, Police Training to Combat Darknet Markets