The Federal District Public Prosecution, which is located in central-west Brazil, has created its own cryptocurrency investigation unit. This unit will assist other prosecutors in investigating cryptocurrency cases and educate consumers about safe use of cryptocurrencies.
Many characteristics make it difficult for traditional intelligence units to detect cryptocurrency crimes. Some countries have already committed a portion of their budget to the development of resources to combat these new crimes. Brazil, a country where numerous cryptocurrency-related scams have happened, has officially reported the launch of a cryptocurrency-dedicated investigation unit.
The new unit, named “Crypto”, is being established by the Federal District’s public prosecutor. It will assist public prosecutors in dealing with cryptocurrency cases. The unit will also target consumers of crypto products in an effort to educate and warn them about safe use of cryptocurrency assets.
Frederico Meinberg is the coordinator of the unit, and a public prosecutor. He spoke about the training that Crypto unit agents must receive. Meinberg said in an interview:
Interacting with the market is the best way to train an agent who deals with digital assets. We can’t offer the best tools, and the agent won’t know how to use them. We always place emphasis on interaction between agents and the ecosystem. This includes exchanges and peer to-peer sellers.
Due to security concerns, Meinberg didn’t disclose the number agents who are part of the crypto-unit.
Brazilian Crypto Regulation
The establishment of the first cryptocurrency-dedicated investigation unit comes on the heels of the approval of the cryptocurrency bill by the Senate of Congress in April. The proposed bill aims to curb crypto-related crime in the country. It defines a new type of crypto-related fraud, and assigns penalties of imprisonment between two and six years depending on the crime.
Meinberg stated that cryptocurrency investigations are more complex than traditional ones due to the nature and sophistication of these crimes. He believes that regulations can be an important help to the public prosecution. They could speed up the process by creating specific protocols.
