While the argument rages on about whether Bitcoin and other cryptocurrencies will be able to knock the financial industry off its perch, it would seem that crypto assets are about to infiltrate yet another construct of the conventional world. Back in July, the United States Army Contracting Command (ACC) of New Jersey posted a pre-solicitation notice for companies which can help with using blockchain technology to drive cryptocurrency investigation efforts.
According to the release, the cryptoanalysis solution will be used by the U.S. Army Criminal Investigation Command (USACIDC), for use in advanced investigations and other related endeavors. The notice revealed that the contractor should be able to provide an online, cloud-based research and tracking service, which can help law enforcement officials in identifying and apprehending people who use cryptocurrencies for illicit activities.
The solution should be non-reliant on software or hardware, and it should also be able to provide concrete proof of the suspect’s involvement in crypto crime (such as transaction records and details). The solution is expected to run analyses on Bitcoin, as well as a few other major altcoins as well.
This wouldn’t be the first time that the links between the U.S. military and cryptocurrencies would be established. Back in 2018, Diar, a research and analysis company, conducted an inquiry into public records, revealing that government agencies had increased their investment into blockchain intelligence firms by threefold.
As the company outlined, blockchain analysis could be useful for financial institutions such as banks in their bid to track compliance with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations.
However, Diar pointed out that blockchain analysis could potentially help provide a “digital trail,” which will guide the actions and investigations of law enforcement agencies, thus helping them to root out any illegal activities being effected through anonymous crypto wallet and exchange addresses.
The company pointed out that it seems government agencies have come to understand this, as they had poured out about $5.7 million in blockchain analysis investments already.
The use of blockchain analysis could help bolster the military and law enforcement agencies, thus making it even more difficult for criminals to operate and evade the prying eyes of the Feds. For many reasons, this is good news.
The most significant advantage of this, of course, will have to be the boost it will give to investigators. 2019 was a huge year for law enforcement in the fight to curb crypto crimes, as numerous criminals were indicted for various violations, and even some popular platforms on the Dark Web were shut down as well. It is becoming more obvious that criminals can’t hide under the crypto disguise anymore, and a collaboration between blockchain and the military will only improve that.
Also, a “cleanup” of the crypto space could finally provide the legitimacy boost that could spur widespread adoption and inclusion into the larger financial framework. The rhetoric of cryptocurrencies being nothing but tools for criminals will finally be put to rest, and investors would feel more confident about making their entry into space as well.