APAC resource challenges hamper investigative efforts
According to the 2024 State of Cryptocurrency Investigation Report from Chinalysis, the Asia-Pacific (APAC) region is witnessing a significant increase in cryptocurrency-related crime.
The increase in illegal activity coincides with a perceived lack of legal resources, affecting the region's ability to proactively address and control the threat of crypto-crime.
Respondents expect that cryptocurrency will involve more cases in various criminal activities in the next five years.
Speaking to Cointelegraph, Hayato Shigekawa, Chief Solutions Engineer at Chinalysis, explained:
“The public sector's recognition of crypto as an asset class continues to grow, and as we've seen in this survey, many believe it has the potential to transform finance. But cryptocurrency is becoming a channel not only for crimes, but for all types of crimes,” he said.
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The challenges of legal resources
According to the report, law enforcement agencies in APAC are struggling to deal with the growing number of crypto-related crimes, including drug trafficking, cybercrime and intellectual property crimes.
Despite the growing importance of crypto crime investigations, many agencies have said they are dissatisfied with current legal resources.
“Overall, more than half of all respondents said they were extremely unhappy or somewhat dissatisfied with their agency's human resource allocation for cryptanalysis.”
On the topic of legal restrictions in the APAC region, Shigekawa told Cointelegraph:
“In Japan, there are some legal restrictions on the destruction of digital assets, while in Singapore, digital assets, including digital currencies, can be seized. Meanwhile, equally important to such legal frameworks are sophisticated solutions to support onchain investigations and comprehensive training programs.”
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APAC negative impressions
APAC survey respondents tend to have negative views of crypto compared to other regions.
“67.7% of APAC respondents strongly or slightly agreed that cryptocurrency is mainly used by criminals and malicious actors.
Contrasting the more optimistic outlook reported in regions such as Latin America and Europe, the Middle East and Africa, the difference in attitudes becomes more pronounced.
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Training and education needs
Given the strong negative perception of crypto in APAC, the report shows a strong demand for better education on the complexities of cryptocurrencies.
Given the low level of satisfaction with labor supply and the limited technical capabilities of legal resources, the report highlights the importance of technical input, which Shigekawa emphasized:
“The data indicates that there is a clear need for improved technical resources in many regions, particularly in Latin America and APAC. Investing in advanced technology is essential to address the gaps that are impacting responders' efficiency.”
The report also highlighted the importance of access to educational resources, as nearly half of the respondents described themselves as having “little knowledge of the asset class.”
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