- Law enforcement is important for blockchain and cryptocurrency technology.
- It is required to reduce cybercrime.
- Agencies are trying to implement policies and laws that are for the betterment of users, participants, and investors in blockchain technology.
Blockchain and cryptocurrency technology are based on distributed ledgers and allow viewers to view every detail but security is important. Government organizations and agencies need to implement enforcement laws so that nothing wrong happens to users and participants. Agencies are struggling with these policies because of the lack of experts and skilled research teams that can meet the current and future demands of blockchain technology. However, progress is still being made in implementing these laws.
Enforcement Law
Enforcement law is defined as a law that is applied in financial sectors or institutions to check that things are going right without any wrong events or crimes. These are used by various organizations in various countries. For example, the U.S. SEC (Securities and Exchange Commission), etc. These are compulsory and have to be followed by each company; otherwise, they have to go through punishments and penalties.
Importance Of Enforcement Laws In The Blockchain And Cryptocurrency
Though blockchain-based technologies are decentralized and, hence, open to each viewer, they still hold security and privacy over the user’s information and sensitive data. The enforcement laws deal with this, where any hacker or attacker trying to leak and get the information will have to face punishment, which can range from freezing assets to paying penalties of millions of dollars.
Many chains that have public access like these are based on distributed ledger technology (DLT) and some are private chains whose access is limited to a finite number of participants. Many special rules for DLT need to be in the enforcement laws.
The crypto world is not yet immune to crime. For example, Chain analysis claims the value of illicit blockchain activity topped $20 Billion last year. Nearly half of the unlawful exchanges came from sanctioned actors. Hence, regardless of whether crypto valuations rise or fall, Blockchain Intelligence Group performs robust investigations into blockchain-related activity. A U.S. judge last month ordered the activation of an internal enforcement tool on the Juart blockchain and froze the accounts of several North Korean and Russian participants.
There are currently insufficient law enforcement-specific blockchain and cryptocurrency training and experts to meet the demand for educating justice practitioners. There is a need for best-practice policies and procedures to secure cryptocurrency assets during investigations. Law enforcement agencies are trying to hire skilled and expert people to conduct research that meets current and future needs.
The importance of law enforcement lies in blockchain technology to reduce cyber crimes. Agencies are working on this to meet the demand for securing users’ data and information. There is a need to develop model materials that can be easily adapted for training recruits, forensic experts, judges, investigators, prosecutors, etc. Digital or cyber fusion centers need to be built that share training materials and actionable intelligence for ongoing cases.
Conclusion
Blockchain and digital technology do not change the definition of the rights of citizens to be secure and safe with the help of the government. As a result, governments must constantly investigate blockchain-based industries to enforce laws. Rules of law, including the right to due process and the issuance of warrants for due process, should apply to all privatized assets, including digital ones. There is a lack of expertise across the justice system in all aspects of blockchain and cryptocurrency technologies. However, work is still going on to implement enforcement laws for the security and safety of information and data.
