Canadian Authorities Seek Digital Asset Solution for Seizure and Storage

Canadian Authorities Seek Digital Asset Solution for Seizure and Storage

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The Royal Canadian Mounted Police (RCMP) and Shared Services Canada (SSC) are taking steps to establish a digital asset solution aimed at streamlining the process of seizing and storing cryptocurrencies and non-fungible tokens (NFTs). The move comes in response to the growing use of digital assets in illegal activities. The government recently opened a tender for applications, inviting proposals for a solution that will enable efficient and secure management of seized digital assets.

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Tender for Digital Asset Storage Solution

On August 10, the Canadian government initiated a tender process for the development of a digital asset storage solution. This solution will cater to the needs of law enforcement agencies like the RCMP, facilitating the seizure and storage of digital assets such as cryptocurrencies and NFTs. The tender application window is set to close on September 21, 2023.

Addressing the Rise of Cryptocurrency Use in Illegal Activities

The RCMP has noted a rising trend in the use of cryptocurrencies and NFTs as mediums of exchange for illegal activities. In response, they aim to establish a centralized repository that enables law enforcement agencies to efficiently seize and store these digital assets. The repository will play a crucial role in preserving the seized assets throughout legal proceedings, ensuring their integrity and security until disposal.

User-Friendly Seizure Process with Enhanced Security

The centralized repository solution seeks to make the asset seizure process user-friendly for law enforcement officers while bolstering security measures. One of the primary aims is to prevent theft or compromise of seized assets during their storage period. The repository is envisioned to offer significant security features to safeguard private keys and ensure the secure disposal of assets when required.

Key Requirements and Features

The RCMP has outlined seventeen key requirements for the potential repository solution. Among them is the need to support new blockchains and provide access to relevant data for authorized users. The repository will allow for the storage and transfer of various digital assets, including Ethereum, Solana, and Polygon-based NFTs. To ensure robust security, the solution will incorporate features like automated daily verification, secure disposal processes, and protection of private keys.

User Access and Mobile Interface

The repository solution will not only provide enhanced security but also offer user convenience. It will feature a native Android mobile application and a web interface, enabling authorized personnel to access and manage the stored digital assets. The user-friendly interface is intended to facilitate efficient asset management and retrieval when required.

As the digital asset landscape continues to evolve, the RCMP and SSC’s initiative to establish a comprehensive digital asset storage solution demonstrates a proactive approach to managing the challenges posed by the use of cryptocurrencies and NFTs in illegal activities. Through this endeavor, Canadian authorities aim to strike a balance between effective law enforcement and safeguarding the integrity of digital assets under their control.

blockchain, ETH, NFT, Polygon