OK Group, the operator of the OKEx cryptocurrency exchange, announced a partnership with the police in the Chinese city of Nanjing to use blockchain to combat money laundering through cryptocurrencies.
OKLink, a subsidiary of the OK Group, will work with the Nanjing Public Security Bureau to develop blockchain-based solutions. They will focus on providing public safety and tracking suspicious digital asset transactions to prevent them from being used for money laundering.
An OKLink spokesman stressed that the blockchain will not be used in day-to-day police activities. To this end, OKLink and the Office will form the Chaintelligence research laboratory. Its specialists will deal with data analysis in the blockchain, risk management and personnel training.
The task force has the same name as the tool developed by OkLink for tracking illicitly obtained crypto assets. According to the company, with the help of this product, the police of five Chinese provinces have already been able to solve several dozen cases related to cryptocurrencies. The police managed to seize about 10 billion yuan (about $ 1.5 billion) of illegally used crypto assets. Therefore, despite the ban on mining and cryptocurrency trading in the country, the Chinese government continues to use blockchain technology.
Beijing-based journalist Colin Wu confirmed on Twitter that Chinese law enforcement agencies are ready to use blockchain to combat cryptocurrency fraud and track illicit funds. The technology really makes it easier for the police to find criminals who are subsequently confiscated.
Many members of the cryptocurrency industry are increasingly collaborating with local regulators and police. However, Jonathan Levin, co-founder of the analytical firm Chainalysis, believes that even complete transparency of cryptocurrency transactions will not stop criminals from committing illegal transactions.
