Cryptocurrency and Blockchain Needs for Law Enforcement

Format:

Book

Author/Creator:

Woods, Dulani

Contributor:

Barnum, Jeremy D.

Danielle Fenimore, Vermeer, Michael J. D.

Hollywood, John S.

Jackson, Brian A.

Language:

English

Place of Publication:

RAND Corporation 2023

Summary:

The advent of blockchain-based technologies has opened a new frontier for individuals wishing to conduct financial and other transactions remotely, anonymously, and without the need for a third party like a bank. Blockchain technology has various uses but is perhaps best known as the foundation for a certain type of digital currency called cryptocurrency. Cryptocurrency is increasingly an accepted form of payment in many legitimate business transactions, but it is also used to facilitate many illegal activities, in large part because of its capacity to facilitate mostly anonymous transactions remotely. As a result, law enforcement investigators need to develop new skills, competencies, and tools for ensuring justice. In support of the National Institute of Justice, researchers from RAND and the Police Executive Research Forum conducted a workshop with law enforcement practitioners, academics, and other experts. Workshop participants identified and prioritized 24 research and development needs that, if invested in, would improve law enforcement's ability to adapt to these societal changes. These needs pertain to policies for digital key management, resources for law enforcement training on blockchain and cryptocurrency, and tools for investigations involving cryptocurrency. In this report, the researchers detail the proceedings of the workshop, discuss the ten highest-priority needs identified by the participants, and provide additional context based on the participants' discussions. The participants prioritized needs associated with raising the level of knowledge for officers and investigators, training or hiring experts who can assist with investigations, and adapting existing policies and procedures to ensure that cryptocurrencies are handled responsibly.