Exchanges in countries with hostile diplomatic relations
Law enforcement agencies reach a block in their investigations if
exchanges are made in countries that have either hostile relations
or no diplomatic relations with their home countries, and hence
are not willing to cooperate or deliver the needed information.
Confidential investigations
Authorities are often unwilling or unable to cooperate with
third parties, such as exchanges, due to the sensitive nature of
their investigations. In some instances, details of a case may be
confidential, while in others, sharing details may compromise the
investigation.
Time-sensitive investigations
Many investigations are time sensitive, meaning investigators do
not have the time to cooperate with exchanges, a process which
may take time and requires bureaucratic efforts.
The last 3 reasons, as well as jurisdiction issues, can also
explain the challenges of approaching other third parties, such
as communication service provider or wallet vendors, with
indicative IP addresses or other identifiers used to reveal illicit
actors’ identities.
1
Cooperation with global, peer-to-peer or
unregulated exchanges 2 3
Keeping up with financial investigations in the crypto age 13