Russia’s Federal Financial Monitoring Service is about to start tracking cryptocurrency transactions. The agency has already selected a contractor to develop the platform. The entity is affiliated with Sberbank, one of the largest financial institutions in Russia.
Rosfinmonitoring to keep records of cryptocurrency wallets used for illegal purposes
Russia’s financial watchdog, Rosfinmonitoringhas selected a contractor to build a platform that will be used to track cryptocurrency transactions in the country. Russian crypto media reported that the company that won the tender, RCO, is managed by Rambler Internet Holding, an affiliate of banking giant Sberbank.
Integrated information system in the field of procurement door Shows that the estimated value of the project is 14.7 million rubles (over $200,000). This money will be spent to enable the regulator to closely monitor illegal transactions involving cryptocurrencies. According to Rosfinmonitoring, the initiative aims to ensure compliance with the law and increase transparency in the crypto industry.
The platform will be expected to perform a number of functions such as tracking the flow of digital financial assets as well as profiling to identify participants in the crypto market and assess their economic roles and behaviour. The RCO must create and maintain a database of cryptocurrency wallets linked to illegal activities and terrorism financing.
Russia to identify crypto users suspected of criminal activity
Unlike other tools that analyze crypto transactions, the new platform must also reveal the identities of crypto users suspected of engaging in illegal activities, said Efim Kazantsev, associate of the Moscow Digital School, Cited by bits.media. However, he added that with a closed blockchain, the disclosure of user data would depend on the network. Kazantsev elaborated that regulatory and law enforcement agencies would probably only have access to this information as part of an ongoing investigation.
Processing cryptocurrency transactions also involves recording data outside the blockchain. For example, with Internet providers, explained Maria Stankevich, director of development at crypto exchange Exmo. Using this type of information, an IP address can be established and a sender can be identified.
It is possible to de-anonymize transaction participants even on confidential blockchains such as Monero and Zcash, said Nikita Zuborev, senior analyst at Russian exchange aggregator Bestchange.ru. He is confident that the latest big data analytics tools will be able to handle this.
bitcoin (B T c), Ethereum (ETH), and Monero (XMRAccording to Rosfinmonitoring, cryptocurrencies are the most popular among criminals. Earlier this year, it was announced that the agency has developed a crypto tracking system called ‘Transparent Blockchain’. The motive for building a new one is no longer clear.
Do you think Russia will be able to track and identify crypto transactions and users? Share your thoughts on this topic in the comment section below.
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