Japan’s National Police Installing Crypto Transaction Tracking System

The Japanese National Police Agency is reportedly installing a system to track the flow of crypto transactions in order to aid investigations of cryptocurrency-related cybercrime. The system is expected to be limited to major cryptocurrencies, according to local media.

Tracking Crypto Transactions

About the Software

NHK noted that the agency plans to add an estimated 35 million yen (~$315,203) to the budget request “for the related expenses necessary for the introduction of [the] software.”

Reiterating that “the software can extract transaction data needed for an investigation from an enormous volume of data, making cyber investigations more effective,” the Yomiuri Shimbun elaborated:

Nikkei further commented that “by making it possible to trace the flow of transactions in a bird’s-eye view,” the software can be used “to investigate crimes that virtual currency entangles.”

Combating Cybercrime

The agency revealed in February that there were 669 cases of “suspicious transactions” reported to the government by crypto exchanges from April to December last year.

In March, the agency released its annual statistics relating to cryptocurrency for the first time, showing 149 cases of hacking attempts to individual cryptocurrency accounts last year. The total damage caused by unauthorized remittances was 662.4 million yen (~$5,965,441), Nikkei reported. Funds were stolen from 16 companies including crypto exchanges and three wallet providers.