Europe has had mixed feelings about Bitcoin since the terrorist attacks in Paris. Soon after the attacks, there were unconfirmed reports stating the use of bitcoin by terrorists. One of the hacktivist groups went a step further claiming to have successfully accessed the systems belonging to the terrorists containing terrorist funds.
Following these claims, ministers from European Union nations started working on the implementation of stringent bitcoin regulations. At the same time, European Police Office (Europol) conducted an investigation to verify the usage of bitcoin by terrorist groups involved in Paris Attack. However, they did not find any evidence suggesting the digital currency’s involvement.
In spite of the lack of evidence on the use of bitcoin by terrorists, Europol doesn’t want to take chances. The police organization has partnered with Chainalysis, a real time blockchain analysis startup. According to reports, the New York-based company has inked a Memorandum of Understanding with Europol’s European Cybercrime Centre to jointly fight cyber crime.
European Cybercrime Centre is already involved in devising ways to detect, investigate and fight digital currency-related crimes. The center has also developed its own cryptocurrency to run simulated crimes as part of the training. With Chainalysis joining hands, Europol will now have access to the startup’s vast experience in blockchain analysis.
Europol will soon be better equipped to investigate digital currency-related crimes including terror funding, money laundering, hacker and ransomware attacks and more by making use of the blockchain analysis tools and expertise. Once the European Union introduces digital currency regulations, the renewed capabilities of Europol will come in handy for enforcing these regulations.
Chainalysis already has partnerships with various banking and financial institutions. It recently entered into a collaboration with Barclays as well, offering its blockchain based regulatory compliance services.
Ref: Press Release